774.56/1–2253: Telegram
No. 1085
The Ambassador in Egypt (Caffery) to the
Department of State1
niact
1703. I fully sympathize with my colleague’s concern over what he anticipates will be British reaction to interim arms program (London’s 4001 to Department repeated Cairo 212).2 However, again London Foreign Office completely, misjudges situation in Egypt.
If after encouragement we have given Naguib about arms, aid program is now scrapped, Egyptians will surely lose their present perhaps exaggerated faith in us.
[Page 1970]Foregoing merely leads up to crucial point, namely that if we destroy our position in Egypt by accepting British veto (or even emasculation) of interim arms program there will be no Anglo-Egypt settlement and no MEDO. On the contrary, faced with impending collapse, this regime will seek to expel British from Suez by force and will incite revolt in Sudan.