399. Telegram From the Embassy in the United Kingdom to the Department of State 1

1960. Geneva for Secretary. When I saw Eden today about other matters we discussed High Dam and he showed me message which had just been sent by Butler to Makins to be transmitted to World Bank and United States Government, concerning results of conversation between Butler and Kaissouni. Gist of message was that Butler had told Kaissouni that British felt that matter should be handled by World Bank and that it was necessary to have the cooperation of United States; that obviously United States could not give financial assistance unless American firms were offered participation in consortium; and that he understood it was entirely satisfactory to everyone concerned to have Morrison-Knudsen participate.2

Eden said that in his own original approach to this subject he had deliberately ignored the Nile waters problem because he had been so anxious to forestall the Russians. He added that he preferred to have World Bank handle matter and he now felt there was less pressing danger of Russians being able to intervene successfully.

Aldrich
  1. Source: Department of State, Central Files, 645W.74322/11–1155. Secret; Priority. Received at 3:04 p.m. Repeated to Geneva and Cairo.
  2. The Department, on November 12, informed the Embassy in London that the United States had “not at any time insisted on participation by American firms in Consortium or in Aswan project. We have constantly supported IBRD in fulfilling its requirements regarding international tenders.” (Telegram 2685 to London;ibid.)