409. Telegram From the Embassy in Egypt to the Department of State1
2558. Iraqi Ambassador2 summarized today his understanding Shepilov–Egyptian talks as follows:
- 1)
- Political: A) Soviets had frankly told Egyptians they would support any United Nations move in direction peaceful settlement of Palestine question. Egyptians had replied they favored United Nations moves reduce border tensions and obtain full implementation of GAA, but would not go further. B) In harmony their desire promote peaceful settlement and in support principle self–determination Russians would support Arab move for discussion Algerian case in Security Council. However Russians did not think taking of Algerian case to Security Council was useful move.
- 2)
- Economic: A) Russians renewed offer construct High Dam using Soviet technicians. Work to be completed within seven years and financed by long–term low interest loan payable in cotton. B) Soviet Bloc prepared build any factories which Egyptians might request on similar financial terms. C) Soviets prepared construct atomic reactor in Egypt.
Rawi did not believe Egyptians had accepted any economic offers as yet and thought that there was some indication Egyptians might be more concerned over implications of closer dependence on Soviets. He had pointed out dangers this course to Nasser recently to which Nasser had replied, “we want to remain neutral between East and West”. In Rawi’s opinion United States should move with all speed to conclude High Dam agreement. “I know”, he said, “there are many who say it is wrong to aid your enemy. If Nasser were alone I would agree. However, behind him is Soviet Union which is our real enemy and if you fail aid Nasser you are not halting your enemy, you are actually strengthening him.”