118. Memorandum From the Acting Executive Secretary of the National Security Council (Boggs) to the National Security Council1

SUBJECT

  • Nationalization of the Suez Canal; Consequences and Possible Related Reactions

REFERENCES

  • A. Memo for NSC from Executive Secretary, subject: “Nationalization of the Suez Maritime Canal Company by the Egyptian Government”, dated August 3, 19562
  • B. Memo for NSC from Executive Secretary, same subject, dated August 7, 19563
  • C. NSC Action No. 15934

At the request of the Deputy Secretary of Defense, the enclosed views of the Joint Chiefs of Staff on the subject, additional to those transmitted by the reference memoranda, are transmitted herewith for the information of the National Security Council in connection with the studies being developed pursuant to NSC Action No. 1593–b.

The enclosed JCS views are being given a special limited distribution, and it is requested that special security precautions be observed in their handling.

Marion W. Boggs
[Page 264]

Enclosure

CONCLUSIONS REGARDING EXPROPRIATION OF THE SUEZ MARITIME CANAL COMPANY BY THE EGYPTIAN GOVERNMENT5

A. General Conclusions:

1. Britain and France are convinced that they cannot accept the consequences of a further rise in Nasser’s power and prestige and can be expected to take any action they consider necessary, including military action, to safeguard their interests.

2. Although Arab League nations generally have expressed themselves as being in favor of the expropriation of the Suez Canal Company, they are not uniformly in favor of increasing further the stature of President Nasser.

3. While the Near East members of the Baghdad Pact were not expected to officially support the abrupt action of President Nasser, the action of Iraq in hailing President Nasser’s seizure may adversely affect the Iranian and Pakistani views on this subject.

4. Israel will view with satisfaction any action which will discredit Egypt in the eyes of the Western World. Israel will probably contend that the abrupt action of Egypt provides justification for increased shipment of arms to Israel.

5. The USSR has publicly applauded Nasser’s action and may have influenced his decision. It is to the USSR’s advantage to upset the West’s equilibrium in any way possible. It is within the realm of possibility that the USSR and Egypt will announce a mutual defense or mutual security pact within the next few days.

6. Unsuccessful U.S. military action would be most damaging and must not be permitted to occur. Accordingly, the United States must be prepared to commit whatever forces may be required to bring its military intervention to a successful conclusion.

B. Conclusions on the Implication of this Situation to the United States from the Military Point of View are as Follows:

7. The war-making potential of the NATO powers would be seriously affected by the interruption of the movement of vital raw [Page 265] materials through the Canal. It is militarily unacceptable to the United States and NATO for this movement to be controlled by a power which is hostile or potentially hostile to the Western Powers.

8. If Egypt closes the canal, the movement through the Suez Canal of raw materials for Western use will have to be rerouted with resultant delays, increased shipping costs, and a demand for ocean freighters and tankers which exceeds the current availability.

9. If the Suez Canal, the Trans-Arabian pipelines and Iraq Petroleum Company pipelines were closed, but crude oil from the Persian Gulf continues to be available, it would have the following implications to the Western Powers:

a.
Necessity for the introduction of national and international controls on petroleum consumption.
b.
Crude oil production would have to be increased in the United States and Canada by 1.3 million B/D, the Caribbean by 200,000 B/D, and the Persian Gulf by 500,000 B/D to maintain Western Europe’s present demand.
c.
The United States and Caribbean could meet the increased crude oil production for the first 90 days; beyond that point doubt exists if this increased production could be maintained for an extended period. In any case, serious depletion of Western Hemisphere oil reserves would result.

10. If the Suez Canal, Trans-Arabian pipeline and Iraq Petroleum pipelines were closed and no crude oil was available from the Persian Gulf there would be an immediate shortage of approximately 3.1 million B/D to the Free World, particularly Western Europe, which can be met only partially by rationing and additional production from other sources.

11. Military action by either the United Kingdom, France, or United States will probably require a withdrawal of forces from NATO commitment and thus temporarily weaken the military posture in Western Europe. However, this is considered of small consequence when compared to the long-term economic effect on NATO and the loss of Western prestige and influence in the Middle East.

12. If Nasser emerges as the apparent victor in his contest with the West, the following consequences may be anticipated:

a.
The resultant decrease in Western prestige could result in the loss of U.S. bases in the Middle East and North Africa and ultimately in other areas such as Iceland, the Philippine Republic, Spain and the Azores.
b.
The rebellion against the French in North Africa will gain new impetus.
c.
The governments and leaders of Middle East countries who have identified themselves with U.S. policies will be seriously weakened.
d.
Other Moslem governments would come under increasing pressure to expropriate Western investments in oil fields and pipelines. [Page 266] Concessions to the USSR on the part of the nations concerned would be a logical corollary to such acts of expropriation. Were these granted, the result would be an acceleration of Soviet expansion and a consolidation of Soviet power throughout the Middle East.
e.
The likelihood of Arab military action against Israel would be considerably increased and vice versa.
f.
Iraqi participation in the Baghdad Pact might become so slight that the Pact would be seriously weakened.

C. Conclusions on the Extent and Nature of Measures Required to Support U.K. (or UK.-French) Military Action without Commitment of U.S. Forces are as Follows:

13. United States could lend support by public endorsement of United Kingdom/French military action in the Suez and by an unqualified commitment to intervene militarily in case third parties come to the assistance of the Egyptians.

14. United States could provide certain needed critical raw materials to the United Kingdom-French for the period of time that the Suez Canal is closed by hostile action.

15. United States could provide increased economic support and financial aid to the United Kingdom and France.

16. United States could provide military supplies and equipment as required by the United Kingdom and France to guarantee the successful seizure and holding of the canal area.

17. United States could eliminate economic aid to Egypt and freeze all additional Egyptian assets which are in the United States.

18. United States could provide more active support to the Baghdad Pact, including adherence, to counter the rise of Arab nationalism. Steps might include: (a) prompt and resolute U.S. adherence to the Pact; (b) a substantial increase in military assistance to the Pact countries; and (c) stepped-up economic aid.

D. Conclusions on United States Participation in Combined Direct Military Action:

19. Assuming that third parties do not intervene militarily on behalf of Egypt, the U.S. contribution toward combined military forces might be on the order of:

a.
Army—1 Division Reinforced.
b.

Navy—1 Fast Carrier Task Force

1 Amphibious Task Group including a Marine Regimental Landing Team and supporting Air Component

c.

Air Force—Air Div Hq

1 Fighter Bomber Wing

1 Tactical Reconnaissance Sqdn Airlift as required and as practicable

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E. Conclusions on Untied Stales Unilateral Action to Protect US. Nationals.

20. The forces required would be as follows:

a.
Army—Army Regimental Combat Team (RCT) Service support units as necessary
b.

Navy—Present Sixth Fleet forces (plus augmentation from WESTLANT) Persian Gulf–Red Sea Forces

1 Air Transport Detachment MSTS and amphibious shipping for Army Units, if necessary.

c.

Air Force—1 Fighter-Bomb Squadron alerted in Europe

1 Reconnaissance Flight (6 A/C alerted in Europe) Airlift for above Army units, if ordered 6 C–119’s, if required

  1. Source: Department of State, S/SNSC (Miscellaneous) Files: Lot 66 D 95, Suez Canal Situation. Top Secret.
  2. This memorandum transmitted the JCS memorandum of July 31 to the NSC; see Document 50.
  3. This memorandum transmitted the JCS memorandum of August 3 to the NSC; see Document 68.
  4. Regarding NSC Action No. 1593, see footnote 8, Document 72.
  5. On August 8, the Joint Chiefs of Staff forwarded to the Secretary of Defense the text of the conclusions printed here under cover of a memorandum by General Twining, which indicated that the studies referred to in paragraph 4 of the JCS memorandum of July 31 (see Document 50) had been completed and formed the basis of the conclusions. Also attached to the JCS memorandum of August 8 was a 23-page paper entitled “Expropriation of the Suez Maritime Canal Company by the Egyptian Government”, which contained a discussion of the problem. (JCS Records, CCS.092 Egypt (7–28–56))