774.5 MSP/12–952: Telegram
No. 1044
The Secretary of
State to the Embassy in the United
Kingdom1
3860. 1. Dept appreciates points made Embtel 2970 Nov 25 and recognizes that close attention must be given econ side Egypt problem. This connection it is hoped some immed assistance can be given both by US and UK to relieve pressure created by failure cotton to move. However, permanent solution cotton situation lies in resumption purchases on world wide scale which cotton marketing experts believe will occur in near future. Meanwhile, Dept awaits with interest Egypt formulation its requirements for econ assistance. We feel such formulation necessary in order nature Egypt econ problem can be more precisely defined and we can decide scope our assistance.
2. Dept believes it impracticable and undesirable give priority econ aid at expense mil assistance. As Cairo points out in its 1300 Nov 26 present regime is mil one and came into power on basis reform Egypt Armed Forces. Since regime attaches great importance mil aid from West, it will be inclined measure success or failure relationship with West in terms mil aid recd. We now know nature mil assistance desired and we are therefore in position work on mil aid program. This we feel must be done without delay if Naguib and his regime are to continue in power. This connection we are encouraged by fact UK considering what mil equipment it might supply Egypt (Deptel 3802 Dec 5 to London). We reaffirm it always been US intention encourage Egypt continue look UK as habitual source supply. Moreover whatever US program may be developed [Page 1907] from our consideration Naguib communication Nov 10 will not be intended alter that general pattern.
3. At same time we know there are dangers in increasing Egypt’s mil expenditures. We wld not wish see mil assistance program reach point where it wld cause deterioration econ situation (with consequent additional claims for US econ aid) and reforms already instituted in Egypt upset. As soon as we know more about econ assistance desired by Egypt, program of econ aid can be considered and integrated more directly with mil program order evolve overall assistance project for Egypt.
4. Dept has given further thought to suggestion made by Eden to Secy re division responsibility for mil and econ aid programs (Deptel 3680 Dec 2 to London).2 We believe such division wld not be politically wise, since Egypts with some reason have come expect mil aid from US as well as UK and we are certain they wld resent implications involved such division. We think, as we have since beginning exchanges with Naguib, that US and UK shld undertake, in consultation, and wherever possible in coordination, with each other, own mil and econ aid programs within framework objectives we are seeking in Egypt.
5. Discuss above with FonOff.
- Repeated to Cairo as telegram 1180 and to Khartoum as telegram 15.↩
- Telegram 3680 to London, Dec. 2, not printed, was repeated to Cairo as telegram 1129. (774.56/12–252) See footnote 2, Document 1040.↩