Foreign Relations of the United States, 1955–1957, Arab-Israeli Dispute, January 1–July 26, 1956, Volume XV

472. Memorandum From the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Allen) to the Secretary of State¹

Washington, undated.

SUBJECT

• Your Appointment with Ambassador Hussein July 19 at 4:00 P.M.

Discussion:

The Ambassador is expected to assert that Egypt wishes to cooperate with the West and has decided to accept the offer made last December to assist with the Aswan High Dam. He may also mention Egyptian desires for PL 480 assistance and an expanded CARE Program.

In accordance with previous discussions we have prepared a draft press release, attached, for issuance after the departure of the Ambassador.²

Recommendations:

After listening to the Ambassador’s presentation you may wish to comment along the following lines:

1. We welcome the Ambassador’s remarks regarding Egypt’s desire for cooperation with the United States. We are certain that the Ambassador during his stay in Cairo continued to use his best influence toward an improvement in relations between the two countries. The comments made to the Ambassador before his departure for Cairo still hold true—the United States is most anxious for good relations with Egypt; it will be quick to respond to acts by Egypt showing a reciprocal desire for cooperation. We have thoroughly demonstrated our desire to assist the Egyptian people in their legitimate aspirations for complete independence and progress.

2. As the Ambassador knows, our offer to assist in the Aswan Dam was an indication of a sincere desire of the United States to cooperate with Egypt. We recognize, of course, that success of undertakings of this type depends upon a basic mutuality of interests between the countries participating. The offer was made in light of the situation which existed in December and the expressed attitude of the Egyptian Government, which led us to believe that this was a feasible program which justified the extensive assistance which was envisaged. The offer was not accepted, and a good many months have transpired in the course of which events have taken place which render the proposal less practicable than at the time it was made.

3. Our proposal, supporting offers by the World Bank and the British Government, presupposed an Egyptian determination to concentrate on this monumental program. It also foresaw agreement regarding the Nile water rights, and Egypt, in February, determined that an agreement on the division of waters should be a prerequisite to commencement of even preparatory work. Egypt has shown a disposition to divert its resources to other purposes and it is far less certain now that, with the added large commitments which have been made, it would be possible to finance that portion of this vast undertaking which would be supported by the Egyptian economy. Also, the other riparian states have advised of their strong desire to be consulted prior to commencement of work, and the necessary agreements have not been concluded.

4. Under present circumstances, the success of the enterprise would require, even with utmost prudence in the management of Egyptian economic affairs, a heavy degree of austerity. The United States would not wish to be placed, through participation in the project, in a position of appearing to be responsible even in part for the hardships which would certainly be involved, or to open itself to accusations of limiting Egypt’s freedom of action which might arise if the plan were now to be implemented.

5. We have therefore concluded that, despite our desire to continue to assist in the development of Egyptian resources and the improvement of the welfare of the Egyptian people, it would not be feasible in present circumstances for us to proceed with the project. In arriving at this decision, the United States recognizes fully the problems posed for Egypt by population pressures and hopes that a foundation of cooperation will develop whereby we can assist in the future.

6. Because of the wide public attention which has been centered on this project, we have prepared a press release to be issued after the Ambassador’s call, which the Ambassador may wish to see.

7. With respect to other aid requests mentioned by the Ambassador, we will be glad to consider them. The Ambassador will appreciate that our ability to respond favorably will naturally depend also upon Egypt’s own actions. We earnestly wish to cooperate with Egypt, but cooperation must, of course, be a two-way street. We recognize that the Ambassador is a sincere proponent of closer relations between our two countries, and the type of cooperation upon which effective and far-reaching American assistance must be based. We earnestly hope that he will continue in his valiant efforts in this regard.

1. Source: Department of State, S/S–NEA Files: Lot 61 D 417, Omega #9. Secret. Drafted by Rountree and Burdett on July 18. The source text bears a notation that Secretary Dulles saw the memorandum. Prepared for Ambassador Hussein’s visit (see infra), the memorandum was discussed during a meeting in the Secretary’s office on July 19. No record of that meeting has been found.
2. Not printed.