711.56373/7–2054: Telegram
The Secretary of State to the Legation in Libya1
5. Negotiations with Libyan Prime Minister on base agreement and economic assistance concluded successfully today. Ben Halim has left for New York and will leave by plane Friday for Paris and London before returning Libya about July 27.
Jurisdiction formula accepted by US consists article along lines British Article 32 coupled with secret statement policy in which Libya undertakes waive its jurisdiction save in cases of particular importance. Other remaining details will be ironed out with Suleiman Jerbi tomorrow. Formal agreement will be signed in Libya and submitted special session Parliament convened before end of September.
Economic assistance promised by US consists 1) acceleration of expenditures from USAF $40 million to provide $4 million annually from 1954 thru 1960 with $1 million annually thereafter; 2) $3 million from MSP FY’55 funds; 3) provision up to 24,000 additional tons grain to meet Libyan deficiencies. In addition we have given assurance sympathetic attention to Libya’s future economic development needs. US and Libya to study jointly projects to which above money can be applied.
Memorandum handed Prime Minister outlining above position being airpouched.2 We hope make it possible for Prime Minister announce grain contribution on return Libya. Otherwise foregoing information will remain classified for present.
During visit Prime Minister called on President and Secretary, was given luncheons by President and Byroade and attended large reception given by Kekhia. Appears pleased with hospitality and results his talks.
Conorada flew Prime Minister and party to Texas and Louisiana oil installations over past weekend.
Text joint communiqué for release simultaneously Libya and US Friday morning follows:
“Negotiations between the Government of the United States and the Government of the United Kingdom of Libya have been concluded successfully during talks in Washington between a Libyan delegation [Page 591] headed by the Prime Minister, His Excellency Mustafa ben Halim, and United States officials. A United States-Libyan base rights agreement has been completed in all matters of substance. The formal agreement will be signed in Libya after the return of the Prime Minister and will then be presented to the Libyan Parliament for approval.
The Prime Minister’s visit to Washington was also the occasion for very satisfactory talks on other problems of mutual interest, including Libya’s economic development and the means of strengthening the friendship already existing between the two countries.”