774.5 MSP/10–1753: Telegram
No. 1231
The Acting
Secretary of State to the Embassy
in Egypt1
439. Joint FOA–State Message. Ref. Department’s CA 1862.2 As result discussions State, FOA, Defense, we now plan authorize Embassy approach Egyptians along lines outlined below when Suez Base negotiations reach appropriate stage. This proposal intended implement commitment contained President’s letter to Naguib regarding [Page 2147] provision US military and economic assistance. Manner presentation to Egyptians to be left to Embassy’s discretion although, as indicated, we desire omit specific figures. Information is for Embassy USOM use only and not for discussion with Egyptians at present.
- (1)
- Military aid up to $25 million in end items. Specific elements to be determined by military survey team which would take into account Egypt’s present availabilities and desirability Egypt’s continuing procure from normal sources of supply. Subject to Congressional action, further limited contributions would be possible in future years. We prefer describe offer as “substantial amount of military end items”. If Caffery considers it absolutely necessary to cite specific figure, he should later request authority from Washington.
- (2)
- Military procurement assistance under Section 408(e) based either on list previously submitted by Egypt or new requests.
- (3)
- Special economic aid up to $20 million subject agreement on sound projects. Additional five million might be available provided additional sound projects could be developed. We prefer avoid citing specific figures, but Caffery authorized do so if in his judgment this required. Furnishing of aid also subject to execution satisfactory single overall economic aid agreement or individual project agreements. Texts will be forwarded for your comments shortly.
- (4)
- Technical assistance funds in amount as yet undetermined from FY 54 appropriation in addition to $10,934,000 carried over from FY 53.