Office of the Historian

136. Memorandum From the Acting Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Jernegan) to the Deputy Under Secretary of State (Murphy)1

Washington,June 21, 1955.

SUBJECT

  • Possible Egyptian Purchase of Arms from the USSR; Egyptian-USSR Relations in General

In response to your request, I am setting forth the information which we now have on the USSR “offer” of arms to Egypt, and on Russian activities in Egypt in general. I have requested our Embassy in Cairo to submit by telegram any additional information on the arms “offer” and by despatch on over-all survey of USSR and satellite activities.2

Embassy Cairo’s previous report states Nasser said “that he had concluded he should accept Russia’s offer of military equipment and plans to send a mission there next week.”3 A subsequent telegram reported that the dispatch of the mission had been delayed.4 We have no other information from the Embassy regarding the current Russian offer. In view of the authorization we have given Ambassador Byroade to inform Nasser that we have no objection in principle to Egyptian purchases of arms in the US,Nasser may abandon his plan to buy in the USSR.5

In February 1954 the USSR offered, through an Egyptian economic mission then in Moscow, assistance in construction of the High Aswan Dam.Nasser, however, did not accept this offer because of fear of Russia’s real intentions. . . . Soviet Ambassador Daniil S. Solod offered technical and economic assistance, including financing for the High Aswan Dam, on May 23, 1955 and added that if Egypt objected to the presence of Soviet personnel in Egypt, the USSR would work through the UN.Nasser declined the offer but inquired whether the USSR would barter heavy artillery for cotton. Solod replied affirmatively and indicated shipment might be made within six weeks. . . .Nasser has designated Major-General Hassan Raghib to head a mission to the Soviet Union to negotiate [Page 262] the purchase of artillery items offered for barter against cotton. . . . According to DRS, the arrangement, if finalized, will be the first sale of arms by the USSR outside the Soviet bloc since World War II.

. . . Czechoslovakia has offered immediate delivery of an unspecified number of military planes in exchange for cotton.

In May 1954 the Embassy in Cairo reported a noticeable increase in Russian overt activity on the commercial, diplomatic, cultural and propaganda fronts. The present Russian Ambassador arrived in Egypt in October 1953. In December 1954 the Soviet was reportedly attempting to increase its cultural influence in Egypt, and plans for opening a “Cultural House” in Cairo received Egyptian approval in April 1955. In that month Egypt announced approval of Soviet and Roumanian offers to supply petroleum products worth $8.4 million against Egyptian cotton. The agreement, similar to one signed last year, is causing concern to American and British oil companies operating in Egypt. You will recall that during the Bandung Conference, Egypt and Communist China were reported to be discussing a trade arrangement involving an exchange of cotton. Since March 1954, the Hungarians, East Germans and Czechs have conducted well-publicized trade fairs in Egypt. The fairs were apparently conducted mainly for propaganda reasons, since no appreciable increase in trade followed.

  1. Source: Department of State, Central Files, 774.56/6–2155. Secret. Drafted by Burdett.↩
  2. The Department made this request in telegram 2229, June 21, to Cairo, not printed. (Ibid., 474.618/6–2155)↩
  3. Reference is to Document 123.↩
  4. Reference is to Document 132.↩
  5. Byroade had received this authorization from the Department in telegram 2214 to Cairo, June 17. See footnote 2, Document 132.↩