249. Editorial Note
During a telephone conversation on March 25, Dillon among other points advised McCloy that it would be helpful for McCloy to mention to Nasser what the United States planned to do regarding double blocking of funds if unable to reach an agreement with Egypt concerning the Canal. Phleger noted that the most important thing which McCloy could do was to impress upon Nasser that McCloy could not do anything about getting him money from the United States business community until Nasser established confidence. If Nasser acted like a responsible person and recognized the interests [Page 469] and rights of the world community vis-à-vis the Canal, he would establish his reputation; but if Nasser did not act like a responsible person, then there would be no money for him and no business to be gotten. Phleger also cautioned McCloy that it would be better to avoid discussing the use of the Canal by Israeli ships and to try not to bring up the question of who paid for the clearance of the Canal. (Memorandum of telephone conversation by Dillon, March 25; Department of State, Phleger Files: Lot 58 D 517, Suez Settlement—SYG, Feb.-Mar., 1957)