342. Editorial Note

During the evening meeting of the Security Council on October 13, a memorandum, which Sir Harold Beeley of the British Delegation had prepared for Foreign Secretary Lloyd, was handed to Secretary Dulles. The memorandum reads as follows:

“I have now had a further word with Mr. Phleger about dues for SCUA. He says that he thinks the misunderstanding can be cleared up. He suggests that the Secretary of State [Lloyd] should ask Mr. Dulles whether we can agree that dues should be paid to SCUA on the four following conditions:

  • “1. SCUA is organized and ready to operate (essentially appointment of an Administrator).
  • “2. The U.S. (as to U.S. flagships), the U.K. and France will all pay dues to it in the same way, and as many others as are willing.
  • “3. SCUA shall be enabled to pay out of these funds fair and proper compensation to Egypt as and when determined by SCUA, and any balance dealt with as determined by SCUA.
  • “4. The U.S. ships will receive the same treatment at the Canal in these circumstances as ships of the U.K. and France if not, a new situation arises.

“Mr. Phleger believes Mr. Dulles will confirm that this is the United States position. I think we could also accept it.”

Later during the meeting, Dulles returned the British note to Lloyd along with a handwritten reply. Dulles’ reply reads as follows:

“This, in substance, is O.K. I think it has been more accurately expressed in our prior communications, e.g., we cannot order payment to SCUA. We can forbid payments to Egypt except through SCUA. We can and will recommend payment to SCUA—also by U.S. owned ships not under U.S. flag.” (Department of State, Presidential Correspondence: Lot 66 D 204, UK official corres. with Secy Dulles/Herter 7/54 thru 3/57 Vol I incoming)