Office of the Historian

505. Telegram From the Embassy in Egypt to the Department of State1

Cairo, July 26, 1956—6 p.m.

140. From Hart. Reference Embassy telegram 135.2 Soviet commercial attaché confirmed to British Embassy official yesterday Soviets intended finance High Dam. British Embassy official states British information although sketchy is to effect offer would involve cash loan (amount unspecified but perhaps in neighborhood 200 million pounds) repayable at 2 percent interest over 20 years period. Proceeds of loan to be available for expenditure both in rouble and non-rouble areas. This connection German Embassy has expressed to us some concern that if Soviets make available non-rouble credits [Page 902] and GOE places substantial orders in West Germany effect may be to soften West German resistance to increased dealings with Soviets.

Byroade
  1. Source: Department of State, Central Files, 874.2614/7–2656. Secret; Priority. Received at 2:52 p.m. Repeated to London, Moscow, and Bonn.↩
  2. Supra.↩