874.00 TA/1–654: Telegram
No. 1267
The Ambassador in Egypt (Caffery) to the
Department of State1
749. From our point of view points set out in Department telegram 713 are sound. However, points one and three will not be convincing to Egyptians. I have taken frequent occasions recently to insist with Egyptians that we will not and cannot extend aid in the face of neutralism. Ahmed Hussein understands this and is helping me in effort to make RCC and Fawzi understand. Fawzi said to me this morning “in that case what about press notices this morning about additional 25 million dollar payment to India?”
Neutralism is a menace here. Press and public are of that mind and if British negotiations definitely fail and it becomes clear that [Page 2191] we are not coming up with economic aid soon Egyptians will put into effect at least some of previously set out programs including recognition Commie China, East Germany, etc.
I am still actively endeavoring to persuade Egyptians to find an acceptable availability formula. Fawzi told me this morning that Egyptians might be able to do something about availability formula and even accept part of British viewpoint about uniforms if they were assured British would not bring up new subjects. He said that last night Stevenson pointedly brought up a new subject and a dangerous one, that is, he referred to the future status of the base in such fashion as to make clear that British have in mind merely reducing the garrison of a military base from 10,000 men allowed by the treaty to 4,000 in the guise of technicians. “That” he said “is entirely unacceptable to the Egyptians” (British garrison is over 80,000).
Stevenson told me later Fawzi’s remarks are misleading.
As reported before, RCC is now merely killing time until their plan of action for actively harassing British in Egypt is ripe.
Paradoxically as it may seem RCC leaders by exception are definitely not neutralist minded and they would very much like to find some way out of the present impasse.
I do not recommend letter from President to General Naguib at this time.
- Repeated to London as telegram 254.↩