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

58. Telegram From the Department of State to the Embassy in Egypt¹

Washington, January 31, 1956—7:26 p.m.

1729. US-UK and IBRD have agreed on changes in Aide-Mémoire December 16, 1956 [1955]² necessitated by new Memorandum of Understanding³ which Black has brought to Cairo.

Thought here is Aide-Mémoire December 16 be withdrawn and new Aide-Mémoire (Aide-Mémoire December 16 as amended) be substituted therefor, such new Aide-Mémoire to be handed Egypt at time Memorandum of Understanding is signed by Bank and Egypt. It should be noted that any changes in Memorandum of Understanding made as result discussions between Black and Egypt may require consequential changes in Aide-Mémoire.

Following are changes necessitated Aide-Mémoire December 16:

1. On Page 1 figure “45,890,000 million cubic feet” should be changed to read “4,589,000 million cubic feet”.

2. On Page 2 third paragraph should read “The Bank, the United States Government, and the United Kingdom Government have conferred with the Government of Egypt regarding the manner in which each may assist in financing the Project. The United Kingdom Government has submitted a proposal to the Government of Egypt, and the Bank and the Government of Egypt have signed a Memorandum of Understanding of_, 1956, copies of which have been delivered to the United States Government, regarding the participation of the United Kingdom Government and the Bank respectively.”

3. On Page 2 last two lines numbered paragraph 1 should read: “the proposal of the United Kingdom Government is accepted, and on the conditions hereafter set forth”.

4. On Page 4 paragraph c) should read: “The Bank intends to participate in the financing of external foreign exchange requirements of the Project in an amount equivalent to $200 million, as set forth in the Memorandum of Understanding of _, 1956 between the Government of Egypt and the Bank.”

5. On Page 4 paragraph d) second sentence should read: “In this connection, the United States Government relies upon the assurances of the Government of Egypt, as set forth in the Memorandum of Understanding of_ 1956 between it and the Bank, regarding the maintenance of a sound and stable economy and the avoidance of inflation.”

Show this message to Black.

Dulles

1. Source: Department of State, Central Files, 874.2614/1–3156. Confidential. Drafted by Jack C. Corbett and Stanley D. Metzger; cleared with Hoover, Phleger, Rountree, Byroade, and Walter A. Radius; and approved by Phleger who signed for Dulles.
2. See telegram 1282, vol. XIV, p. 868.
3. See footnote 3, Document 51.