Office of the Historian

473. Memorandum of a Conversation, White House, Washington, July 19, 1956, 9:40–9:52 a.m.1

Washington, July 19, 1956, 9:40–9:52 a.m.

SUBJECT

  • Aswan Dam

PARTICIPANTS

  • The President
  • Secretary of State
  • Under Secretary of State

After the NSC meeting of July 19, 1956,2 the Secretary outlined to the President the present situation existing in relation to Egypt [Page 862] and the Aswan Dam. The Secretary pointed out that the Egyptian Ambassador was returning to Washington with the publicly announced intention of accepting the US–UK–IBRD offer of financing, which was originally made on December 16, 1955. Internal economic conditions in Egypt had changed markedly during the seven months since the offer was first made, and the Nile waters problem appeared to be farther from solution than ever before, notwithstanding Nasser’s professed optimism. The Secretary also pointed out that whoever undertook the venture would undoubtedly become unpopular with the Egyptian people due to the degree of austerity that would have to be imposed upon their economy before the project could be completed.

Furthermore, the Soviets would find considerable embarrassment in explaining the continued low standard of living to their own people and the satellites if they undertook such a large project for the benefit of the Egyptians.

Another problem was the increasing difficulty of working with the Nasser regime, and the fact that a successful prosecution of the project would require great cooperation and confidence on both sides.

The President concurred with the Secretary’s view that we should withdraw the U.S. offer upon the occasion of the Ambassador’s visit.

The Secretary showed the President a rough draft of a statement that we might make following the interview.3 The President approved its general line.

  1. Source: Department of State, Central Files, 874.2614/7–1956. Secret. Drafted by Hoover and initialed by Dulles indicating his approval. The time of the meeting is from the record of the President’s Daily Appointments. (Eisenhower Library)↩
  2. The question of Egypt and the Aswan Dam was not discussed during the NSC meeting.↩
  3. Not printed.↩