Foreign Relations of the United States, 1955–1957, Suez Crisis, July 26–December 31, 1956, Volume XVI

354. Report Prepared in the Executive Secretariat of the Department of State¹

Summary No. 34

Washington, October 19, 1956.

SUMMARY OF DEVELOPMENTS IN SUEZ SITUATION

Resumption of Direct Negotiations Forecast

We have told Embassy Cairo² that, not withstanding the veto of the second portion of the resolution at the UN last week, continued exchanges between the foreign ministers of the UK, France and Egypt are being encouraged. The British and French have indicated their willingness to resume discussions with Fawzi, although the French have insisted upon a delay to avoid any implication that they are “too eager”. In the absence of complications, we now expect the talks to resume by about October 29—probably at Geneva.

We have concluded that it is most important now to get the substantive discussions going again under Hammarskjold’s auspices. In that connection, Egypt should make proposals to the UK and French which are sufficiently specific and which have such a realistic relationship to the six principles agreed upon at the UN and to the 18-nation proposals that negotiation to a conclusion is morally compelling. Such a development, if quickly begun, would prevent a further freezing of positions. We have suggested to Hare that he, in his discretion, put forward this general idea in his talks with Nasser and other appropriate Egyptian officials.

French View of SCUA’s Role in Collecting Tolls

French Foreign Office officials have told Embassy Paris³ that they understood the US believes 90% of the Canal tolls collected by SCUA should be paid to Egypt for the expenses of the Canal operation, whereas the French believe only about 10% should be paid to Egypt. The French consider that withholding as large a proportion of the tolls as possible will serve to stimulate Nasser to negotiate a settlement on the basis of the six principles adopted by the Security Council.

[Here follows discussion of the SCUA Council Meeting (reported in telegram 2137 from Paris, October 18; Department of State, Central Files, 974.7301/10–1856) and the appointment of the Danish Consul General in New York, Eyvind Bartels, as SCUA Administrator.]

(Summary closed 12:30 p.m., October 19, 1956)

1. Source: Eisenhower Library, Whitman File, International File. Top Secret; Eyes Only for Designated Recipient.
2. In telegram 1188, October 18, not printed. (Department of State, Central Files, 974.7301/10–1856)
3. Reported in telegram 1816 from Paris, October 18, not printed. (Ibid.)