350. Memorandum of a Telephone Conversation Between the Secretary of State in Washington and the Representative at the United Nations (Lodge) in New York, October 17, 1956, 3:25 p.m.1

Ambassador Lodge telephoned following his luncheon talk with Secretary General Hammarskjold. Hammarskjold had said that he [Page 743] felt that Egypt, France and the United Kingdom all wanted another meeting. They are thinking of the 29th of October at Geneva and Hammarskjold is prepared to invite them to meet with him at that time at the Geneva office of the United Nations. Hammarskjold was, however, worried about the possible results of imprudent and bellicose talks.

Fawzi is going to Cairo before coming to Geneva. He feels that doing that will add to his authority and put him in a better position to make a definitive proposal. Hammarskjold, however, is nervous lest the talking by the British and the French becomes so threatening in tone that Nasser will not let Fawzi go to Geneva. Also, Hammarskjold thinks that if the payment of dues is further disarrayed by further blockings through SCUA, then that might bring about a crisis and Fawzi may not come to Geneva.

Hammarskjold feels, as a result of his Monday talk with Lloyd, that Lloyd is in a good mood and wants to come to an agreement.

I mentioned to Lodge that the British and the French were trying very hard to get us and others to stop payments at the Canal and to pay into a blocked account with SCUA. Lodge said that Hammarskjold felt that if this happened it would blow things “sky high” and that if the British want an agreement they should not try to bring about this change in the tolls system.

Lodge added that Hammarskjold will not actually call the meeting until he has a further response knowing that all three will attend. In answer to an inquiry from me, Lodge said that Hammarskjold had had no word either from Lloyd or Pineau since they got home. Hammarskjold had added that he had a talk with Pineau before he left and that Pineau was “not unhappy”.2

JFD3
  1. Source: Eisenhower Library, Dulles Papers, General Telephone Conversations. Eyes Only. Drafted by Dulles. Another memorandum of this conversation by Bernau was attached.
  2. At 3:45 p.m., Dulles telephoned the President to give him the gist of this conversation: Hammarskjöld’s belief that “things are on the track. Once we know we can make a positive statement, said the Pres., he would like to know. The Pres. asked can’t we get word to the Egyptians not to believe all they read but go on and negotiate. The Sec. said we have to be careful not to undermine the British. The Pres. said he knows—but his idea was to tell them to keep their dispositions and get into this business.” (Ibid., White House Telephone Conversations)
  3. Macomber initialed for Dulles.