144. Telegram From the Embassy in Egypt to the Department of State 1

1722. Reference Embassy telegram 1632.2 Egyptian technical mission to Khartoum returned February 28 after discussion Sudanese-Egyptian currency linkage and commercial matters in general. Mission was headed by Nabih Younis, Under Secretary, Ministry Finance. Younis informed Embassy officer no agreements reached with Sudanese except with regard to terms of reference concerning topics discussed. Younis stated Sudanese reaffirmed earlier request that Egyptian delegation [come] to Khartoum to initiate Nile waters talks. Egyptian Government currently studying this new request. Younis felt that Sudanese seemed uncertain their position regarding Nile waters subject. Younis also commented his opinion general political situation in Sudan highly explosive and that Azhari government could not continue in this situation.

  1. Source: Department of State, Central Files, 645W.74322/3–156. Secret. Received at 2:56 p.m. Repeated to London and Khartoum.
  2. Byroade notified the Department in telegram 1632, February 20, that during a conversation with Nasser on February 18, he had “asked Nasser his plans for reaching agreement with Sudan on Nile waters.” Nasser replied that he expected “negotiations to start in Khartoum and Egyptian technical mission probably will go there this week.” When Byroade informed Trevelyan of Nasser’s remarks, Trevelyan, in turn, told Byroade that he foresaw “following complication in Nile waters agreement with Sudan. Sudan hopes obtain IBRD financing for at least part of their water development projects prior to reaching agreement upon division of Nile waters. Sudan cannot expect Bank loan until member of Bank and Monetary Fund. Cannot be member of Bank and Fund until it has recognized currency of its own. Cannot work out its own currency until agreement reached with Egypt as to how Egyptian currency now in Sudan is to be repatriated.” (Ibid., 645W.74322/2–2056)