874.00 TA/1–952: Telegram

No. 950
The Secretary of State to the Embassy in Egypt


1011. Totec. Embtel 1017 Jan 8. Dept desires no action now to terminate Gen Agreement for Technical Coop. Continue negots with Egypt Govt to obtain Sec 511 (b) assurances.1 Inform Dept developments in negots to permit additional instrs re Technical Assistance Program and comply Deptel 996 Jan 8.2

Emb shld point out that assurances required by Act need not be considered as amendments to May 5 Gen Agreement. May be exchange notes reaffirming mutual support broad objective internatl understanding mentioned May 5 agreement, and projecting it, but only to extent mutually agreeable, by undertaking action that will eliminate causes of tensions between peoples.

Dept regrets Egyptians believe US attempting exercise big stick diplomacy through manipulation technical assistance, when simply obliged conform specific provisions MSA, including phrase from Sec 511 (b) quoted ur 1020 Jan 9.3 In lieu that phrase you may wish suggest fol language which being suggested for final version draft exchange notes with Leb.

“The Govt of Leb, in accordance with the principles of the UN Charter, agrees to join in promoting internatl understanding and good will, and in maintaining world peace and to undertake such action as may be mutually agreed upon to eliminate causes for internatl tension.”

FYI exchange notes on 511 (b) signed with Jordan and Saudi.

Indication our desire reach understanding demonstrated by fact technicians continuing work on projects until agreement reached or clear no agreement possible.

[Page 1752]

If becomes definite assurances impossible termination Gen Agreement wld be on three months notice consistent with Art VIII para 1 said Agreement.

If Emb deems useful argument in answering contention US unilaterally violating Gen Agreement might point out that under its terms aid to be extended pursuant separate written agreements or understandings. Memoranda of Understanding for two projects state expressly they are subj to availability of appropriations. Since US appropriation not available for expenditure until assurances are recd US not in violation Gen Agreement or Memoranda Understanding entered into pursuant to Gen Agreement in suspending these. Memo of Understanding for development low cost housing and materials is conducted under lump sum contract with private contractor which will not be renewed or extended unless assurances are recd but which does not provide for immed cancellation by TCA and such cancellation is not now planned.

Assume Egyptians now clear that Jan 8 was deadline for Sec 511 (b) of Mutual Security Act (Deptel 996) whereas Jan 24 is deadline for Mutual Defense Assistance Control Act, known as Battle Act,4 which requires that US mil econ and fin be cut if assurances not given that certain arms and commodities of primary strategic significance not including cotton (see Depcirins of Dec 175 entitled “Battle Act Lists”) will not knowingly be shipped to Soviet bloc. After prelim look at Battle Act lists Egypt Emb told Dept Egypt not shipping any Battle Act items to Soviet countries. Memo that conversation sent Emb by air about Jan 3.

  1. This reference is to the Mutual Security Act, signed into law on Oct. 10, 1951, as Public Law 165. (65 Stat. 373)
  2. Not printed; the Department instructed the Embassy in Egypt to suspend new dollar expenditures for commodities and equipment for technical assistance until Egypt provided the necessary assurances called for under the Mutual Security Act. On the assumption that Egypt would give the proper assurances, however, the Embassy was instructed to allow the technicians in Egypt to remain and perform their duties. (874.00 TA/1–852)
  3. Not printed; the phrase in question is as follows: “and to undertake such action as they may mutually agree upon to eliminate causes for international tension”. Ambassador Caffery reported that he thought the Egyptian Government would insist on the elimination or substantial modification of this phrase in the final exchange of notes signifying Egyptian compliance with the terms of the Mutual Security Act. (874.00 TA/1–952)
  4. Signed into law on Oct. 26, 1951, as Public Law 213. (65 Stat. 644)
  5. Not printed.