372. Telegram From the Embassy in the Sudan to the Department of State1

328. Reference Department telegram 226.2 Embassy has no information indicating Sudan—Egypt agreement on division Nile waters is imminent and believe Sudan will find reasons to delay it for [Page 684] several months. Finance Minister says he does not need Nile agreements until December 1957. Latest reports here are that Sudan is awaiting additional technical data before continuing negotiations and both Foreign Minister and Finance Minister say they will not negotiate until currency agreement reached. Wide divergence of opinion exists here as to possibility favorable outcome present currency talks in Cairo but Finance Minister says he will introduce currency bill Parliament May 28 to show Egypt Sudan is serious in its determination have independent currency which Finance Minister says will be placed in circulation October-November this year regardless results negotiations with Egypt. Need to work out plans for resettlement Wadi Haifa population which will require several months will also be used delay Nile agreement. In present uncertain state internal politics and question stability present government, complete Cabinet support to enter such controversial agreement as division Nile water would be difficult alternate even if he favored it unless it meets Sudan’s full requirements. Despite its reported determination delay agreement Sudan will not refuse to negotiate for fear of arousing full strength Egyptian propaganda which might disturb present precarious working agreement among parties participating in government.

In view likelihood indefinite delay in Nile agreement believe initiation move toward international control would be advisable at this time unless needed convince Egypt reliance on USSR is not possible. Quick Egypt-Sudan agreement might become desirable later if Egyptian policy toward USSR should change. If international agreement should be deemed essential suggest Ethiopia with which Sudan is on excellent terms be used to raise question as consider Azhari too weak and other parties participating in government too divided to raise issue, but they might be expected to support it if it were raised since it is in accord with overall Sudanese position.

Pinkerton
  1. Source: Department of State, Central Files, 874.2614/5–2656. Top Secret. Received at 1:05 a.m., May 27. Also sent to Cairo, London, and Addis Ababa.
  2. Document 362.