741.56374/4–354: Telegram

No. 1317
The Ambassador in Egypt (Caffery) to the Department of State1

top secret

1243. As its outlines become clearer I am increasingly persuaded that British are now on right track in Suez base negotiations. Following are my comments regarding London’s 4342, April 2 to Department:

1.
We must avoid at all costs, resurrecting in minds of Egyptians fear of United States-United Kingdom “gang-up”. I think joint presentation would have exactly this effect; same would be true of formal parallel representation. As I have said before, Nasir is only one with enough will and guts to make and defend a settlement. I suggest best tactic would be for me to make first move with Nasir privately. I would tell him more or less: “United States and United Kingdom have been working hard to find a compromise which meets our needs and your needs. We have found a formula which United States strongly advises you to accept. Stevenson will give you the details. I will be constantly available in background.” Next move would be for Stevenson to tell Nasir about proposals and work out with him most effective manner of presentation to Egyptian negotiating team. (On this, only Nasir in position to advise.)
2.
I prefer idea of starting with bilateral Anglo-Egyptian agreement. After Anglo-Egyptian agreement well along in negotiations with United States helping behind the scenes, we will be in better [Page 2257] position to decide best manner of identifying United States more openly and formally with agreement. On one hand, we may find that Egyptians want United States to appear soon in picture openly, as guarantor of honest British execution; on other hand, RCC may find it easier to deal with their opponents if United States moves gradually into the picture by succession of steps, i.e., economic aid followed by military aid.
3.
Regarding civilian contractors, I can only reiterate (my telegram 1137, March 20) that while Egyptians in practice are fairly reasonable about employment foreign technicians (e.g. Aswan electrification) they are highly sensitive about policy acknowledging need for foreigners. This makes useful idea Egyptian company coupled with program of personnel reduction as Egyptians trained.
Caffery
  1. Repeated to London as telegram 410.