323. Letter From the Acting Secretary of State to the President1

Dear Mr. President: I have your letter of October 82 raising a number of questions on the Suez situation.

The Secretary, I believe, would want to discuss personally with you three of your thoughts, namely, the possibilities of a White House statement, a plan wherein Nasser would make a public offer, and your calling another conference.

The other points contained in your letter were discussed by me with some of our senior officers and I am enclosing a memorandum covering them.

Faithfully yours,

Herb

[Attachment]

MEMORANDUM

1.

Question: “Without direct reference to the Suez, we might make public some of the results of studies conducted under the leadership of ODM concerning the world’s future need for big [Page 685] tankers. If we should conclude to go ahead with the construction of some of these (approximately sixty thousand tons) regardless of the Suez affair, the announcement of our intention might have a calming effect.”

Answer: We are in close contact with Dr. Flemming and Governor Adams on the desirability of appointing an advisory group to study this matter.

2.

Question: “Should we be any more specific in our communications with Nehru in the hope that he could influence Nasser into negotiations?”

Answer: We should not be any more specific in communications with Nehru than we have been. The President and the Secretary have already had several exchanges of views with Nehru.3 During recent years India has tended to support the general course of Egyptian foreign policy; however, the Indian reaction to Nasser’s nationalization of the former Suez Canal Company has been tempered by India’s realization of its own dependence upon the Suez Canal. Nehru and his representative, Khrishna Menon, have been active in recent weeks, we believe, making suggestions to Nasser for a solution to the Suez Canal operations. The United States continues to support the principles contained in the 18-power proposal which provide for international participation in the Suez Canal operation. Nehru understands American flexibility within this framework. If we should now attempt to be more specific in communications to Nehru we might give an erroneous impression of willingness to compromise and thus undermine the general U.S.-U.K.-French discussions with the Egyptians in New York. As the United States now is in direct touch with the Egyptian officials in New York, it would be preferable to hold direct discussions with them. At the same time, it may be assumed that India will continue its own efforts to persuade Egypt to moderate its views.

3.

Question: “Could the Organization of American States serve any useful purpose now or in the future—such as a joint resolution or the like?”

Answer: The Organization of American States could serve a more useful purpose in the future rather than at the present time. If there should be some agreement between Egypt and the Western powers, the OAS might be persuaded to adopt a joint resolution supporting the agreement. Effective action through the OAS at this stage would not be useful because: (a) Panamanian resentment over exclusion from the London conference; (b) some Latin American countries, [Page 686] such as Chile, are lukewarm regarding the U.S. position on the Suez Canal, although other Latin American countries, such as Brazil, Cuba and Venezuela, have been favorable; (c) the principle of nationalization has been popular in Latin America; (d) the involvement of the U.K. and France introduces an overtone of colonialism into the matter; and (e) it might precipitate debate about the status of the Panama Canal.

4.

Question: “I assume that we are secretly keeping our communications [open] with the oil-producing Arab States, in order to get their influence somewhat on our side.”

Answer: The United States has continued in close touch with the oil-producing Arab States, including especially Saudi Arabia, Iraq and Iran. In Saudi Arabia there have been a number of personal and confidential communications at a high level between King Saud and American officials regarding the Suez Canal. In Iraq we have endeavored to assist the Iraq Prime Minister on several important matters, including Iraq’s relations with Saudi Arabia and with Jordan. In Iran we have continued consulting with the Shah and other Iranian officials on various aspects of Near Eastern matters, including the Baghdad Pact and SCUA.

  1. Source: Eisenhower Library, Whitman File, Dulles–Herter Series. Secret. Initialed by Eisenhower. A copy of this letter and the attachment are in Department of State, Central Files, 974.7301/10–1056.
  2. Document 311.
  3. This correspondence is in Department of State, Presidential Correspondence: Lot 66 D 204, Prime Minister Nehru’s Correspondence with Eisenhower/Dulles 1953–1961.