Office of the Historian

192. Memorandum From the Secretary of State to Ambassador C. Douglas Dillon1

Washington, March 5, 1957.

I request you to take primary responsibility for the negotiations which will relate to the Suez Canal, i.e., the matter of payment of tolls and the matter of the future status of the Canal and its operations.

You will in these matters keep in touch with Mr. Rountree with relation to the area, with Mr. Elbrick in relation to our Western European allies, and with Mr. Phleger with respect to the legal aspects of the matter.

While I think it important to try to preserve unity with the British and the French, I think you should remember that they are not the only users of the Canal and not the only nations concerned, and that a great many of our friends would not be as rigid as they are disposed to be.

I assume that the actual negotiations with the Egyptians will be conducted by and through Hammarskjold.2

JFD3
  1. Source: Department of State, Central Files, 974.7301/3–557. Dillon was appointed Deputy Under Secretary of State for Economic Affairs on March 14, 1957.↩

  2. Dillon accepted the responsibilities during a telephone conversation with Dulles which began at 1:01 p.m. on March 5. (Eisenhower Library, Dulles Papers, General Telephone Conversations)

    On March 9, Dillon established two organizations to facilitate his work on the assignment: (1) a Senior Advisory Group, consisting of Rountree, Elbrick, Phleger, and Wilcox; and (2) a working group to coordinate and initiate action, consisting of Shaw, Moline, Metzger, John Fobes (IO), Sisco, and Corbett. (Memorandum from Dillon to Senior Advisory Group, March 9; Department of State, Central Files, 974.7301/3–557)

    ↩
  3. Macomber initialed for Dulles.↩