Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 2

741.56374/7–954: Telegram

No. 1338
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

top secret

London, July 9, 1954—1 p.m.

143. Limit distribution. Foreign Office informed Embassy today in strict confidence that Stevenson putting new British proposals on Suez base to Egyptians tomorrow.² No announcement will be made and British hope for absolute secrecy for next few days. Churchill is meeting with group of Conservatives July 13 to explain proposals. It expected Butler and Head (Minister of War. will participate in this discussion but not Eden, in order stress proposals have full Cabinet support rather than being merely Foreign Office inspired. Next day some sort of announcement will probably be made in House Commons.

In effort improve atmosphere for resumption of talks British decided release pounds 10 million Egyptian sterling balances and Stevenson has so informed Egyptians. According to report just received from him this has had extremely favorable reaction. Foreign Office tells us some consideration was given to making release conditional on relaxation Egyptian trade restrictions but it finally decided not make this absolute condition, although Stevenson was instructed to ask for, and received, oral assurances on this score.

Aldrich

1. Repeated priority to Cairo as telegram 3.
2. Ambassador Aldrich reported in telegram 12, July 1, not printed, that the Foreign Office was sending instructions to Stevenson to be prepared to approach the Egyptians after Eden’s return, which was expected on July 6. (641.74/7–154)