Office of the Historian

362. Telegram From the Delegation at the Foreign Ministers Meetings to the Department of State1

Geneva,October 27, 1955—11 p.m.

Secto 44. Paris for Byroade. Appreciate analysis contained Tosec 27,2 28, 293 and approve recommendations therein specifically second [Page 669] paragraph Tosec 274 and first and last paragraphs Tosec 28. There was discussion on Aswan Dam at meeting Paris yesterday with Macmillan,Shuckburgh,Byroade and myself present.5 With respect Tosec 29 paragraph 8 A, I will discuss with Byroade here tomorrow6 best means of approach to Nasser to convince him of soundness from GOE point of view of IBRD handling of project and of US–UK desire and ability to provide indispensable cooperation with respect Sudan and financing; and also to ascertain whether in return GOE can be expected to show constructive attitude toward ME problems.

At Paris meeting Macmillan suggested package approach to Nasser re Sudan: (1) Sudanese independence and (2) Sudanese agreement immediately thereafter on division of waters and use of lands for reservoir.Macmillan also said reason for consortium was belief that IBRD might not be able act expeditiously enough to keep Soviet out of project and that under IBRD principle of competitive bidding Soviet bloc firms might be able make lowest bids (for political objectives).Macmillan said if matter can be so handled by IBRD that Soviet bloc firms will not obtain contracts he has no objection that approach.

Department should work as expeditiously as possible with IBRD and British representatives Washington to formulate course of action which will put us in best position to hold out to Nasser solid advantages of working with IBRD and US–UK provided we decide that we can afford to work with Nasser. This in turn involves question of Egypt Soviet relations and consequences with Northern Tier of seeming to reward flirtation if not more with Soviet Union. Please keep me informed.

Dulles
  1. Source: Department of State, Central Files, 396.1–GE/10–2755. Secret. Received at 10:08 p.m. Repeated to London, Cairo, and Paris.↩
  2. See footnote 2, Document 360.↩
  3. Documents 354 and 355.↩
  4. It reads as follows: “After full consideration of all aspects of this project, we are firmly of opinion that there is no practical alternative to continuing support for IBRD and that US and UK should join together in carrying forward project through that agency.” (Department of State, Central Files, 396.1–PA/10–2555)↩
  5. See Document 358.↩
  6. No account of this conversation has been found in Department of State files.↩