874.00 TA/12–3153: Telegram
No. 1266
The Secretary of
State to the Embassy in
Egypt1
priority
713. New York Times Dec 30 carried London story British Government circles concerned at possibility US military or economic aid to Egypt and on December 31 carried Hanson Baldwin article criticizing US failure support UK more strongly.FYI only Dept has informed British Ambassador its displeasure at first story.
AP Washington story Dec 30 cited “authoritative sources” saying US reported to have informed UK it intends give Egypt military and economic aid.
In response queries prompted by first NY Times, Department replied that question of economic aid to Egypt still under consideration. Dept continues take this line in response further press inquiries. Re military aid we will say we have no present plans.
In response Egyptian Embassy, Dept making following points:
- 1.
- US doubts extension economic aid during present delicate stage Base negotiations would be conducive chances of settlement. Announcing aid now might evoke such violent reaction London that talks would be doomed. It will be recalled that it was Egyptian public criticisms which first gave wide publicity to connection between Base negotiations and US aid.
- 2.
- Recent official Egyptian advocacy of neutralism jeopardizes immediate extension economic aid. Even if deterrent mentioned preceding para not operative, US could not appear to be granting aid in direct response this type of Egyptian pressure, not only because of adverse domestic (especially Congressional) reaction, but [Page 2190] also because of very adverse effect in other Middle Eastern countries, where such action would undercut moderate elements and embolden extremists to demand their governments exert similar pressures.
- 3.
- US continuing efforts promote workable Anglo-Egyptian accord, Egyptian Government may be assured such efforts have included frequent instances in which we have pressed important points in discussions with UK, despite strains in US–UK relations. There has been no “deal” at expense Egypt. US has pressed UK as hard as it has pressed Egypt, even harder.
Embassy at its discretion may use foregoing in conversations with Egyptian Government. Embassy comments on probable effectiveness above points requested.
Department considering recommending Presidential letter to Naguib asking that Egypt exercise moderation, especially in view of considerable progress already made in negotiations and the delicate balance between success and failure as the goal is near. Letter could make points set out numbered paras above in confidential friendly tone. Embassy views requested.
Department of course encouraged by Fawzi’s belief RCC members will refrain from tendentious statements (Embtel 703 Dec 22),2 and believes present press flurry provides opportunity reinforce Fawzi’s efforts induce moderation.