289. Telegram From the Department of State to the Embassy in Egypt1

549. Re Embtel 5092Deptel 5333 and USUN [Deptel] 537.4

(1)
We cannot extend credit or grant of arms to Egypt in absence of clear progress on program outlined in the Secy’s speech of August 26.
(2)
If appreciable progress made in this direction, we believe positive action possible on credit or grant of arms, as well as in many other directions contingent upon completion of program.
(3)
We can at any time deemed advisable use our best offices and influence to promote closer relations between Egypt and Sudan [Page 492] and endeavor assist on solution of Nile water problem which would facilitate Aswan Dam project.
(4)
As regards US adherance to Baghdad Pact we do not intend to move at this time in absence of Arab-Israeli settlement, but developments could alter our position. In event of chain reaction resulting from GOE acceptance of Russian proposal (Emb’s 509) it might prove desirable for us to join Pact promptly, bringing with us as many Arab States as possible. In such contingency, events might also require us to grant Israel a security pact.
(5)
It has seemed to us that above analysis was implicit in operation outlined in Secy’s speech and we regret that any misunderstanding should have arisen.
(6)
We hope above will give you basis for further frank conversations with Egyptians.5
Hoover
  1. Source: Department of State, Central Files, 684A.86/9–2055. Top Secret; Alpha. Drafted by Hoover and Allen, and approved and signed by Hoover.
  2. Document 287.
  3. Repeated in Document 284.
  4. Document 285.
  5. The following day the Department repeated this telegram priority to Russell. (Telegram 1577 to London, September 21; Department of State, Central Files, 684a.86/9–2155)