145. Telegram From the Embassy in Egypt to the Department of State1
12. Following summarizes pattern of Communist bloc activity in Egypt.
- 1.
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Political. Communist bloc states now enjoy great political advantage in Egypt as compared US since their public position agrees with that of GOE and most of its supporters on vital issues of Turk-Iraqi pact and all “western-sponsored” defense alliances, Zionism and Israel, “colonialism”, and Egypt’s policy of “independence”. Furthermore no split on issue of wide public interest seems exist between Egypt and Communist bloc.
During past two years Communist bloc states have more than doubled size their missions in Egypt, opened several new offices, and now appear to be planning to open liaison office Khartoum. Pattern of blocs general political activity in Egypt, however, has not changed significantly this period. In particular no evidence exists that bloc has made serious attempt unite splintered Egyptian Communist movement although subversive activities among minorities continue on small scale.
- 2.
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Economic. In contrast, Communist bloc has made every effort maximize commercial ties with Egypt from which it has reaped considerable political advantage. Bloc has increased cotton purchases 66% above last season and figure likely go much higher if projected exchange with Communist China can be worked out. Communist bloc also actively interested in Egyptian rice which, like cotton, suffering heavily from depressed world market for which Egyptians blame US surplus disposal programs (present or “contemplated”). Communist bloc, in exchange for cotton and rice, is offering petroleum and industrial equipment at favorable prices including locomotives and is carrying on very intensive trade promotion through trade fairs and delegations. Egyptians have welcomed Communist trade offers. Apparently convinced American agricultural policy will continue unfavorably affect their previous markets in Western Europe, GOE making every effort establish new markets in only available area i.e. Communist bloc.
Soviets have also offered “assistance” to Egypt on high dam project. In this case however Egyptians have been wary, probably because they are doubtful of Soviet ability follow through and so prefer not cut themselves off prematurely from possible western [Page 276] financing. If IBRD and or other forms of western financing fail materialize, Soviet offer, if renewed, may appear more interesting.
Communist bloc has also concluded series payment agreements with Sudan Government with tacit consent of Governor General who considers “foreign affairs” not involved.
- 3.
- Cultural. Communist bloc has carried on active cultural program which has been particularly successful in promoting visits of Egyptians to Communist areas and in penetrating press circles. Latter is relatively easy since by and large Communist and crypto-Communist journalists are highly qualified professionally and write well and to the liking of many of regimes supporters on subjects such as foreign and economic policy.
- 4.
- Psychological. Present world wide conciliatory attitude of Communist bloc has also helped produce feeling on part GOE that in addition economic necessities, short run advantages of dealing with Soviets may outweigh long range disadvantages. Additional factors are awareness weakness local Communist movement and pervading suspicion of western intentions toward Egypt as GOE becomes increasingly persuaded that divergencies between its foreign policy objectives and those of the US unlikely to be resolved in Egypt’s favor in near future.
Conclusion:GOE remains opposed local Communist political activities and is vaguely aware of long-term dangers closer relations with Communist bloc. Nevertheless, I believe GOE, which sees no evidence recent increase bloc political and subversive activity in Egypt and appears convinced trade with bloc probably absolute necessity in absence concrete evidence to contrary, is prepared accept risks involved.
- Source: Department of State, Central Files, 780.5/7–255. Secret; Priority. Received at 7:39 p.m.↩