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

463. Memorandum for the Files of a Meeting Held in the Department of Agriculture, Washington, November 1, 1956¹

Washington, November 1, 1956

At 1:05 p.m., November 1, I was called by Mr. Kalijarvi of the State Department and informed that effective immediately all P.L. 480 aid to Israel was to be immediately discontinued, that cargoes now being loaded or afloat would not be stopped but that no further shipments should be made under existing contracts. I was further informed that no public statement should be made concerning this decision.

A conference of affected Department of Agriculture agency personnel and policy people was held immediately, the information transmitted and decisions made to inform contracting parties furnishing commodities under P.L. 480 agreements that no further effectuation of existing agreements would be carried out at this time.

At 2:30 p.m., November 1, Mr. Herbert Hoover, Jr., Under Secretary of State, called and said that no action should be taken of any kind at the moment, that we should continue to fulfill existing contracts under P.L. 480 agreements, that no new agreements should be negotiated in the Mediterranean area with particular reference to the area of conflict until the situation was further clarified. With respect to existing agreements, Mr. Hoover said we would be advised as to any changes as to their continued effectuation. By 2:35 p.m. I had informed Mr. Garrett, FAS, Mr. Lennartson, AMS, Mr. Berger, CSS,² that the decisions reached in conference following the 1:05 p.m. information were to be ignored, that we would proceed on a normal basis until advice was received to the contrary.³

E. L. Peterson⁴

1. Source: Department of Agriculture Records, Office of the Secretary, Commodities 5. Confidential. Drafted by Ervin L. Peterson, Assistant Secretary of Agriculture, on November 2.
2. Respectively they were: Gwynn Garrett, Administrator of the Foreign Agricultural Service; Roy W. Lennartson, Deputy Administrator for Marketing Service, Agricultural Marketing Services; and Walter C. Berger, Associate Administrator, Commodity Stabilization Service.
3. On November 2, Hollister suggested to Hoover that either ICA or the State Department issue an official statement indicating, among other points, that there had been no formal cessation of U.S. aid programs in the Near East as a result of the recent hostilities, but that the evacuation of U.S. personnel in Egypt, Israel, and Jordan had automatically brought almost to a halt all technical assistance programs and had slowed down materially all development assistance activity. In a marginal notation on the document, Hoover advised that these points should be made verbally and that Lincoln White should use them for background. (Memorandum from Hollister to Hoover with attached draft statement, November 2; Department of State, Central Files, 780.5–MSP/11–256) On November 3, The New York Times and other newspapers reported that, according to Department of State spokesman Lincoln White, there had been no order to suspend economic aid to the area, although no new programs were going forward. The transcript of the Department of State press briefing for November 2 is in Department of State Daily News Conferences, 1956.
4. Printed from a copy that bears this typed signature.