Office of the Historian

240. Telegram From the Department of State to the Embassy in Egypt1

Washington, March 20, 1957—7:29 p.m.

3134. GSA announced March 18 directed by ODM draw up plans for disposal stockpiled extra long staple cotton.2 Hassan Egyptian Embassy called to protest decision stating this in conjunction unwillingness accommodate release blocked funds or make P.L. 480 sales was “intensification of sanctions”. Although Department officer assured him decision dispose of stockpiled cotton not connected with present US-Egyptian relations but based on decision stockpile no longer necessary, and that plan if approved by Congress would require sales take place in such manner not disrupt local or world markets, Hassan unconvinced and stated he would report conversation to Cairo.

Dulles
  1. Source: Department of State, Central Files, 411.7441/3–2057. Official Use Only.↩
  2. At the Secretary’s Staff Meeting on March 19, the GSA statement was discussed as follows: “Mr. Kalijarvi referred to a GSA statement yesterday that long-staple cotton would no longer be considered a strategic item. He pointed out that this decision meant that this type of cotton would no longer be stockpiled but become competitive in the commodity market. The Secretary endorsed Mr. Rountree’s comment that this development could cause considerable political problems with respect to Egypt, the Sudan, and Peru, the chief suppliers of long-staple cotton.” (Ibid., Secretary’s Staff Meetings: Lot 63 D75)↩