656. Memorandum of a Conversation, Department of State, Washington, December 14, 19561

SUBJECT

  • Review of Egyptian Situation with Foreign Minister Fawzi

PARTICIPANTS

  • Dr. Mahmud Fawzi, Foreign Minister of Egypt
  • Dr. Ahmed Hussein, Egyptian Ambassador
  • The Acting Secretary
  • G—Robert Murphy
  • NEAWilliam M. Rountree
  • NEMaurice S. Rice

After an exchange of pleasantries, Dr. Fawzi spoke of the crisis in Hungary and agreed with the Acting Secretary that the aftermaths may be far reaching. He added that if Moscow continues in its present course, more walls around it may crumble. Dr. Fawzi then turned to the matter of the Soviet “volunteers” who had been reported as being prepared to aid Egypt during the recent hostilities. He said that Egypt had never asked for them. The present breathing spell, he stated, allows a chance for constructive work. He hoped there would be no more incidents which would further complicate the situation. He said that we must continue all efforts to bring about an atmosphere in the Near East and African area conducive to cooperation among nations, including the British and the French. In this connection, he hoped that some arrangement might be reached which would lead toward the recognition of the rights of the Algerians.

Suez:

Dr. Fawzi said that there is progress on the immediate task of clearing the Canal and expressed his satisfaction with the work of Lt. General Wheeler, who, according to Dr. Fawzi, had told Secretary General Hammarskjold that Egypt was cooperating with him. The Acting Secretary said that the problem of expediting the clearance of the Canal is of grave concern because millions of persons who had nothing to do with the Near East trouble are suffering as a consequence [Page 1308] of it. Mr. Hoover added that Egypt would lose much good will if it insisted upon complete withdrawal of the British and French forces before allowing the salvage work to begin. He urged Egypt to take the initiative in starting the work and to permit the use of whatever equipment is available. Dr. Fawzi said General Wheeler had been allowed to start his survey of the Canal, despite initial opposition in Cairo, and to gather necessary equipment from any source. The survey should be completed at about the same time the withdrawal ends which, according to Dr. Fawzi, should be December 16 or 17. The Secretary General is fully informed and is satisfied with the progress, Dr. Fawzi added. Mr. Murphy asked about the use of British and French experts in the salvage operation. Dr. Fawzi said only three men would be permitted on each ship, on a temporary basis to train others in the use of the equipment. The Acting Secretary replied that owners of the equipment would not want persons unfamiliar with the equipment to use it. Dr. Fawzi evaded an answer and remarked that he was confident some arrangement would be reached.

The Palestine Dispute:

Dr. Fawzi expressed doubt that any progress could be made toward a solution of the Palestine issue at the present time, but indicated that after a period of study and consultation with other Arab leaders, Egypt might be willing to have a small group—perhaps even one man—outside the UN seek a basis for settlement. If this fails, however, the matter might go to the UN. He stressed his preference for an informal approach to the problem.

Aid for Egypt:

Dr. Fawzi then turned to the main point of his presentation: Egypt’s concern over U.S. assistance to Britain and France, to the apparent exclusion of Egypt, the aggrieved, who had suffered severe losses and whose economy is damaged. He said that he could understand why the U.S. is helping her allies—and he believed the Arabs understood the reason. He said Egypt is not asking for aid, at least not at this juncture, but the situation creates a problem. How best can we deal with it, he asked? He indicated that Egypt might have to raise the matter in the General Assembly but, being aware of the acrimony that would result, he strongly preferred to handle the problem outside the UN. In reply, the Acting Secretary said U.S. assistance has wider implications than just aid to Britain, because of the dependence of a great part of the world on sterling trade and because the welfare of many people is involved. As for economic aid to the Near East, the Acting Secretary said the U.S. would evaluate [Page 1309] the overall need of the area to determine how we can best help on the basis of expressed principles to bring about peace and stability. In reply to Dr. Fawzi’s comment on U.S. blocking of Egypt’s accounts, the Acting Secretary outlined how the action, arising from Egypt’s nationalization of the Canal Company, had taken place and said the matter is of primary concern to the Treasury, which is studying it on a continuing basis.

Egyptian Activities in Other Countries:

The Acting Secretary then spoke in frank terms of our grave concern over the operations of Egyptian agents in the Near East. Incontestable information from our observers in the area tell of fedayeen raids in Israel, sabotage in Kuwait and hostile acts in Lebanon. The Acting Secretary said President Nasser and Dr. Fawzi might not be aware of these dangerous and inflammatory activities. He requested Dr. Fawzi to tell Nasser of our concern and to urge him to take remedial action. Dr. Fawzi, who listened attentively with no apparent sign of surprise, thanked the Acting Secretary for bringing the matter to his attention in such a frank and friendly manner and said he would ask Nasser to take action. He was grateful that the Acting Secretary had raised the point because, he said, such situations must be dealt with promptly and not allowed to grow and fester.

  1. Source: Department of State, Central Files, 684A.86/12–1456. Secret. Drafted by Rice. Briefing papers prepared for this meeting include a memorandum from Murphy suggesting that a discussion of economic aid be linked with a discussion of how to solve the Arab-Israeli problem (ibid., 684A.86/12–1356); three studies prepared in the Office of Intelligence and Research on Egyptian interference in the internal affairs of African and Middle Eastern states (ibid., 670.74/12–1456); and a general briefing memorandum prepared in the Bureau of Near Eastern, South Asian, and African Affairs (ibid., NEA Files: Lot 58 D 545, Egypt).