401. Memorandum From the Acting Assistant Secretary of Defense for International Security Affairs (McGuire) to the Under Secretary of State’s Special Assistant for Mutual Security Affairs (Barnes)1

SUBJECT

  • Suspension of Action on Egyptian Cases Numbers 4 and 10
1.
References: [Page 736]
a.
Department of State memorandum to the Department of Defense, 12 April 1956,2 subject as above.
b.
Letter from Acting Assistant Secretary for Near Eastern, South Asian and African Affairs, Department of State to the Assistant Secretary of Defense (International Security Affairs), 23 May 1956,3 concerning subject cases.
2.
In accordance with request contained in reference 1a. above, the Department of Defense suspended all action on RMA cases Egypt 4 and 10.
3.
In view of the time which has elapsed since request for purchase of these items was made by the Egyptian Government (see attached chronology),4 and the fact that another government’s funds are being held by the United States, the Department of Defense is of the opinion that unless release of the shipment is to be made shortly, the cases concerned should be cancelled and a refund made of moneys now on deposit. In addition, the Department of the Army has another requirement for the meteorological station, mobile, (case No. 4) if not to be made available for Egypt. Also, since these cases were fully approved at the time of the original request, inquiries are being made by the foreign government’s military representatives concerning the status of these transactions. The Department of Defense is at a loss to know what answer should be made to these inquiries.
4.
It is, therefore, requested that the Department of Defense be authorized either to cancel the cases and refund the moneys on deposit, or to make available the items for shipment.5
Perkins McGuire6
  1. Source: Department of State, Central Files, 774.5–MSP/8–356. Confidential.
  2. This memorandum requested the Department of Defense to suspend action on Egyptian Cases No. 4 and 10. (Ibid., 784A.5–MSP/4–1256) Egyptian Case No. 4 involved a mobile meteorological station; Egyptian Case No. 10 involved 75–mm. artillery shells.
  3. This letter requested the Department of Defense not to sell the equipment involved in the two cases to other buyers. (Letter from Rountree to Gray, May 23; ibid., 784A.5–MSP/5–2156)
  4. Not printed. The Egyptian requested purchase of Case No. 4 on June 23, 1954; of Case No. 10 on March 25, 1955.
  5. A note attached to the source text indicates that the Bureau of Near Eastern, South Asian, and African Affairs was assigned action on this memorandum.
  6. Printed from a copy that bears this typed signature.