365. Telegram From the Department of State to the Embassy in Egypt1
2815. Subject instruction last paragraph you should call on GOE and in manner deemed most appropriate discuss matters relating High Aswan Dam.
[Page 672]Useful recall that US made its offer assist in this project on December 162 after extensive discussion Washington with Egyptian representatives in line with Egyptian plans at that time for proceeding with work in phases in order comply with Egyptian wishes for immediate action. Thereafter GOE submitted certain counter-proposals to British representative in Cairo based upon new premise that work would not commence without prior agreement on division Nile waters and containing number other suggestions for modifications which raised certain problems which have been under consideration by US in consultation with UK.
You should point out fact that US offer for grant contribution to first phase of project based upon funds earmarked from FY 1956 MSP appropriations, but in view approaching end of year and fact Egyptians have decided not proceed in absence Nile waters agreement, it clear US participation will have to come from subsequent Congressional appropriations. Under US law obligation of funds would require agreements with GOE and IBRD and therefore funds cannot be turned over IBRD in advance such agreements. US intends that, assuming necessary agreements concluded, funds will be set aside from FY 1957 appropriations subject, of course, to favorable Congressional action.
We would appreciate in this connection learning of current views GOE re prospect agreement on Nile waters and would be glad learn GOE thoughts with respect to future talks.
FYI Foregoing line designed give GOE some interim information without either a) indicating that US had decided drop idea participation in dam or b) commenting at this time substantively on GOE counter-proposals which might imply immediate willingness to proceed with project on some basis. While it unlikely in present circumstances US could proceed with project we wish avoid giving Egyptians pretext for announcing agreement with Soviets on basis US refusal End FYI.
British Embassy Washington informed foregoing message. London should consult Foreign Office3 and Cairo discuss with British [Page 673] Embassy.4 Before proceeding confirm Trevelyan has received no objection from Foreign Office.
- Source: Department of State, Central Files, 874.2614/5–2456. Secret. Drafted by Rountree and Shaw, approved in draft by Hoover and in substance by Corbett, and approved by Rountree who signed for Dulles. Repeated to London and Khartoum.↩
- See telegram 1282, vol. XIV, p. 868.↩
- The Embassy in London
reported on May 25 that it had approached the Foreign Office “and
learned Foreign Office is informing Trevelyan there no objection to Byroade’s proceeding along lines
Department … telegram.” (Telegram 5481 from London; Department of
State, Central Files, 874.2614/5–2556)
The following day, Willie Morris of the British Embassy informed John Shaw that the Foreign Office concurred in the action proposed in telegram 2815. (Memorandum of conversation by John F. Shaw; Ibid., 874.2614/5–2656)
↩ - See Document 379.↩