Office of the Historian

243. Telegram From the Delegation at the Bermuda Conference to the Department of State1

Bermuda, March 21, 1957—11 p.m.

Secto 7. At discussion today about Suez Canal, committee was appointed to see what further measures might be taken at this time.

Following FYI report of committee was accepted by both delegations:

“Agreed views of Working Committee.

  • “1. The suggestions conveyed to Mr. Hammarskjold in the State Department’s telegram of March 20 to the American Ambassador in Cairo form a reasonable basis for an interim arrangement.
  • “2. It would be premature to formulate a fall-back position at this stage. The aim should be to obtain acceptance of this proposal or failing that an Egyptian counter-proposal.
  • “3. In their messages to Mr. Hammarskjold and Colonel Nasser, the US Government have exercised as much pressure as is possible at this moment.
  • “4. It would however be helpful if the Foreign Secretary would reinforce the action of the US Government by sending a message to Mr. Hammarskjold in Cairo. A draft is submitted. (Reftel Cairo 33, London 3, Secto 6)2
  • “5. It would not be useful to bring in SCUA immediately or to attempt to conduct negotiations with Egypt through SCUA. On the other hand SCUA should be informed of the latest developments as soon as this can be done without embarrassing Mr. Hammarskjold.
  • “6. If an interim arrangement is obtained, the other members of SCUA should be invited to cooperate in securing the payment of dues through the agency of SCUA.
  • “7. Consideration was also given to the problems arising from the fact that ships would be passing through the Canal before an interim arrangement could be put into effect. It was suggested that, so far as the United States, the United Kingdom and France were concerned, it would be desirable to consider the possibility of paying the dues to Egypt while at the same time setting aside equivalent sums (in the blocked accounts), with the implication that release of these sums would depend on Egypt’s agreement to a substantial interim settlement.
  • “8. If the attempt to secure an interim settlement failed, consideration should be given to various measures, including:
    (I)
    Withholding of all forms of economic assistance from Egypt;
    (II)
    Payment of dues through SCUA;
    (III)
    A report to the Security Council, on the basis of the resolution of October 13;
    (IV)
    A proposal that the United Nations should ask the International Court for an advisory opinion on the passage of Israeli ships through the Canal;
    (V)
    Pressing of negotiations for a permanent settlement.”

Dulles
  1. Source: Department of State, Central Files, 611.41/3–2157. Secret. Drafted by Wilkins. Received at 12:30 a.m., March 22. Repeated to Cairo and London.↩
  2. The reference is incorrect. It should be to telegram 3 from Bermuda to Cairo, repeated to the Department of State as Secto 6; see footnote 6, supra.↩