Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 2

Conference files, lot 59 D 95, CF 133

No. 1026
Memorandum of Conversation, by Wells Stabler, Adviser to the United States Delegation to the General Assembly

secret

[New York,] November 15, 1952.

Subject:

• Secretary Acheson’s Conversations with Foreign Ministers of the NEA area Attending the 7th General Assembly of the United Nations

Participants:

• Ahmed Farrag Tayeh, Foreign Minister of Egypt
• Mohamed Kamel Abdul Rahim, Egyptian Ambassador to the U.S.
• The Secretary
• Wells Stabler, U.S. Delegation

After an exchange of amenities the Foreign Minister said that the new regime in Egypt is endeavoring to settle outstanding issues. There is a new spirit in his country and it is important that progress be made to underscore this spirit. The Secretary replied that we were encouraged by the many signs of progress and remarked that the new Sudanese proposals seem to be a particularly hopeful sign.

The Foreign Minister said that the Sudan proposals had been a result of an agreement with all the Sudanese parties and he was hopeful that an agreement with the UK could be reached shortly. He pointed to the fact that elections are scheduled to be held in the Sudan at the end of this year and that therefore it is necessary to arrive at an understanding with the British as soon as possible. He understood that the British find certain difficulties with the proposals, particularly with respect to the limitation on the Sudanese on the choice of either independence or unity. The Minister asserted that the Sudanese did not desire dominion status and therefore no reference was made in the proposals to dominion status as a possible choice. While Mr. Farrag hoped that it would be possible to reach an understanding with the British, he felt that U.S. pressure on the UK would assist.

The Secretary said that the U.S. would try to be as helpful as possible in this, and mentioned that he had discussed this question with Mr. Eden a few days ago who appeared to be favorably inclined.¹

Mr. Farrag then said that while Egypt appreciated U.S. sympathy for a new regime, Egypt hoped that this sympathy could be turned into material support. Egypt was in need of financial, economic and military assistance. He expressed the hope that the U.S. would find it possible to purchase additional cotton from Egypt for stockpiling purposes. He also hoped that military equipment might be made available. He asserted that Egypt had been endeavoring to create a favorable atmosphere for such a program and cited the approval of his government for payment of compensation to the British for those who had lost their lives during the January 26 riots.

The Secretary said that Egyptian action approving compensation had been most helpful in creating a favorable atmosphere. Turning to a possible program of assistance the Secretary said that the U.S. was prepared to discuss this matter with the Egyptians with a view to determining what might be done. He informed the Foreign Minister that export licenses for commercial police equipment had already been approved. Mr. Stabler said that we had gone into the question of cotton purchases and found that at the present moment there was no further need for stockpile purchases. With regard to commercial purchases it appeared that at least for the time being, there was no commercial need for Egyptian long staple varieties. The Ambassador inquired whether it might not be possible to purchase cotton, even if the U.S. did not need it, for the purpose of assisting Egypt financially. The Secretary then inquired as to the possibilities of Japanese purchase of Egyptian cotton since Japan had considerable sterling balances. Mr. Stabler said that that matter had been looked into and it appeared that a Japanese trade mission was either in Cairo or on its way for the purpose of working out a trade agreement. Mr. Stabler stated his understanding that previous negotiations between Egypt and Japan had been made difficult by problems of financing and exchange.

Mr. Farrag said that Egypt needed dollars and that was the reason for his request to the Secretary. The Secretary assured the Minister that we would follow this question closely and see whether there was anything that might be done.

Referring to the police equipment the Minister said that the Ambassador would be receiving instructions regarding this question but he wondered whether it might not be possible to extend the scope of these purchases. In this connection he said that Egypt found it very difficult to purchase military equipment in the U.S. and that other sources such as Sweden and Switzerland had been cut off. It was only recently that some progress had been made with some of these countries. The Secretary again said that we were prepared to discuss this whole matter with the Egyptians and asked Mr. Stabler to follow these matters with the Minister before the Foreign Minister’s departure for Cairo on November 21. The Minister said that he would report the conversation to General Naguib and arrangements for discussions would be worked out. The Secretary said it might be desirable to do this through military channels.

[Here follows discussion of German-Israeli reparations.]

1. Presumably the reference is to the Secretary’s conversation with Foreign Secretary Eden in New York on Nov. 12. (Memorandum of Conversation; Conference files, lot 59 D 95, CF 134)