181. Letter From the Secretary of Defense (Wilson) to the Secretary of State1

Dear Mr. Secretary: I refer to your letter of 21 July 19552 requesting Department of Defense concurrence in a governmental position that we are prepared to consider supplying a portion of the equipment requested by the Government of Egypt. Reference is also made to Department of State memorandum,S/MSA–8–2A, dated 7 July 1955,3 which requested pricing and availability data for the requested equipment and assigned Egypt Case No. 12 to this transaction.

In view of the overall political considerations indicated in your letter, the Department of Defense is prepared to supply to the Government of Egypt on a reimbursable basis the equipment requested. The delivery of such equipment is to be in consonance with the provisions of Section 106 of the Mutual Security Act of 1954, as amended.4

There is attached data reflecting estimated costs and probable availability for the equipment requested by the Government of Egypt.5 Availability is contingent on prompt receipt of a firm order and funds to cover purchases.

The following comments are made regarding the requested items:

(a)
If Napalm Bombs are sold to the Egyptian Government it will not only contribute to its offensive capability but will establish a precedent for making sales of this item. It is suggested that this item not be included in any list of equipment approved for supply to Egypt.
(b)
B–26 aircraft are still maintained in active USAF inventories, however 30 to 33 could be made available either in the United States or from the USAF in Europe. Aircraft made available from either source will require complete rehabilitation, costs for which are shown. Costs for necessary follow-on support and equipment, based on a 200 flying hour program per aircraft, per annum, are also shown.
(c)
An expedited delivery of six aircraft could be made in December 1955.
(d)
An expedited delivery of twenty M4A3 tanks could be made to the shipping agent of the Egyptian Government within 60 days after receipt of a firm order and funds.
(e)
Flame Thrower Tanks are not available for supply.

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The Department of Defense recommends that before a commitment is made to the Government of Egypt careful consideration be given to:

(a)
Insuring that the supplying of this equipment to Egypt does not set off an arms race between the Arab States and Israel. This may be done by controlling the scope, character and phasing of delivering this equipment and of any material sold to Israel to minimize the possibility of its use for aggressive purposes. The Department of Defense is prepared to periodically supply, in accordance with the availability shown, only that portion of the equipment so desired by the Department of State.
(b)
The capability of Egypt to purchase this matériel without damaging its economy.
(c)
The feasibility of urging Egypt to refrain from signing the Egyptian-Saudi-Syria pact on the basis that the receipt of this equipment will raise the relative military strength of Egypt and should allay fears that the United States is not interested in her welfare. A diminution in Egyptian opposition to the Baghdad Pact and an end to Egyptian pressure for the formation of the ESS Pact could forestall any possible Iraqi apprehension over this sale of U.S. Arms to Egypt, and thereby facilitate continued Iraqi support of the “Northern Tier” concept.

Sincerely yours,

C. E. Wilson
  1. Source: Department of State, Central Files, 774.56/8–555. Top Secret.
  2. Document 167.
  3. Not printed. (Department of State, Central Files, 774.5–MSP/7–755)
  4. The Mutual Security Act of 1955, which became Public Law 138 on July 8, 1955, amended the Mutual Security Act of 1954. For text of the act, see 69 Stat. 283.
  5. Not printed.