474. Memorandum of a Conversation, Department of State, Washington, July 19, 1956, 11:20 a.m.1
SUBJECT
- Aswan Dam
PARTICIPANTS
- Sir Roger Makins, Ambassador, British Embassy
- Mr. J. M. Coulson, Minister, British Embassy
- Mr. R. W. Bailey, Counselor, British Embassy
- The Secretary
- The Under Secretary
- NEA—George V. Allen
The Secretary informed Sir Roger that when the Egyptian Ambassador comes to see him at 4 o’clock this afternoon, he planned to tell the Ambassador that in view of developments during the past six months, the US Government did not feel that Egypt could concentrate the resources necessary to carry out the Aswan Dam project successfully. These developments have included the pledges of substantial amounts of Egyptian cotton for arms purchases. Moreover, agreements with other riparian states on division of the Nile Waters have not been reached. The Secretary said he would point out that the decision that the project was no longer feasible did not in any way alter our friendly feelings for Egypt. The essential point was that the project was too grandiose. Any outside country or group which undertook it would find it necessary to control Egyptian economy so closely that irritation and resentment would inevitably result.
The Secretary then referred to another aspect of the Government which he would not go into with the Egyptian Ambassador, but which was important. He said the Senate would debate the foreign aid bill tomorrow.2 Unless it is clear that the Aswan project has been put aside, a rider will inevitably be attached to the appropriation, requiring that no funds be spent for this project.
Sir Roger commented that the British Government would have liked to have had a chance for a further exchange of views with us before a definitive decision had been reached. He did not believe the British Government had yet taken a Cabinet decision on the matter, although he thought the general view in London was similar to our own. The Secretary said he would have welcomed such an exchange [Page 864] also but that the forthcoming Senate debate made action necessary today. He pointed out the desirability of action being taken by the Executive Branch of the Government rather than through a legislative rider. He was not certain that a rider might not be attached any way. If Ambassador Hussein left his office with any doubt whatever that the project was definitely closed, this would be reflected in press articles and a stiff rider would be inevitable.
Sir Roger said that he or Mr. Coulson would telephone to London before the Secretary saw Ambassador Hussein. He commented that he would let his Government know that the Secretary would have preferred to have received London’s further “advice” if there had been time. The Secretary, amid general laughter, remarked that it depended on what construction was placed on the word “advice”. Sir Roger said he would find a less objectionable word.
- Source: Department of State, Central Files, 874.2614/7–1956. Secret. Drafted by Allen. The time of the meeting is from the Secretary’s Appointment Book. (Princeton University Library, Dulles Papers)↩
- Reference is to the Mutual Security Appropriation Act of 1957, which President Eisenhower signed into law on July 31.↩