774.5 MSP/1–953: Telegram

No. 1075
The Ambassador in the United Kingdom (Gifford) to the Department of State1

secret

3774. From Byroade. Ambassador and I discussed Egypt with Eden after lunch today and explained to him why we considered interim arms program for Egypt essential if US is to give full support it desires to UK in achievement common defense objectives Egypt and Middle East. I emphasized that equipment under $11 million program would not actually reach Egypt for four months or so. I stressed that without interim arms program we would find ourselves in greatly weakened position vis-à-vis Egypt since it would mean that we had in fact ignored Egyptian request of November 10 which was in response US–United Kingdom agreed line. I recognized that we might have difficulty with Israel on this matter but felt that in the interests of western objectives, and even of Israel itself, we must take brunt of criticism and go ahead with arms program.

[Page 1959]

Eden recalled that he had suggested to Secretary in New York that most important aspect Egyptian problem is economic situation and had expressed hope that US might assist economically rather than militarily. He believed that Naguib was making mistake in concentrating on military needs while economy of country deteriorating. He felt $11 million arms aid was excessive and might cause difficulties both with respect to British opinion and with Israel which was already making strong representations not only about British jets to Arab states but also now re proposed US arms program. Eden indicated that United Kingdom release jets to Egypt had been made over very strong objections Churchill. Eden said that he would much prefer that US limit its arms aid if we believed we must go ahead at all, to smaller amount than $11 million. It might be possible, Eden suggested, for us to offer Egyptians about $5 million program now, follow up in several months with another $5 million depending upon developments.

I explained to Eden that we are having a difficult time devising economic assistance although there is possibility that we might do something on wheat. I could, of course, not agree that we should limit ourselves only to economic aspects. Re his suggestion that we phase $11 million program, I said that we would look into this matter but in no way made commitment on such course.

Summary, my belief is that in view Eden’s attitude we probably can go ahead with $11 million program but I should like Department urgently to give consideration to whether there is any way we can meet Eden’s point without emasculating program.

Re Sudan, Eden said Stevenson would be authorized probably today to put clean draft (Embtel 3739 January 8) to Naguib over weekend.2 He emphasized that he could not agree to go further than he has in the new draft on governor’s powers South Sudan.

Gifford
  1. Repeated to Cairo as telegram 201.
  2. See footnote 2, supra.