266. Minutes of a Meeting Held in Secretary Dulles’ Office, Department of State, Washington, April 3, 19571

SUBJECT

  • Coordination of Future Courses of Action with Regard to Egyptian Declaration on Suez Canal

PARTICIPANTS

  • The Secretary
  • Mr. Allen Dulles
  • Mr. Dillon
  • Mr. Rountree
  • Mr. Wilcox
  • Mr. Reinhardt
  • Mr. Berding
  • Mr. Beam
  • Mr. Meeker
  • Mr. Metzger
  • Mr. DePalma

The Secretary stated that if the Egyptian declaration concerning the Suez Canal is issued substantially in its present form a new situation would be created in the area which would call for a broad review of our policies and objectives. He asked Mr. Reinhardt to be responsible for coordinating all activities within the Department involved in this review.

The Secretary suggested that since we were entering a new situation the review of our policies should encompass actions for which … officers of other agencies were responsible. He stressed that he was not suggesting any redistribution of responsibilities among the Departmental bureaus concerned but only that these responsibilities be coordinated by Mr. Reinhardt.

Among the matters which required reappraisal, the Secretary mentioned (1) the various major policy papers bearing on this problem …; (2) such Suez Canal problems as the role of SCUA, the payment of tolls, advice to shippers, and the question of “double-blocking” of accounts, which will continue to be handled by Mr. Dillon; (3) possible action in the Security Council; (4) the prompt issuance of a press statement upon the release of the Egyptian declaration on the Canal; (5) the question of seeking the advisory opinion from the ICJ concerning navigation in the Gulf of Aqaba and, in this connection, the effect of such an action upon our relations with Saudi Arabia; (6) studies, which might involve ODM, relating to oil pipelines, larger tankers and other long-term alternatives to the Suez Canal; (7) tourism and other economic policy matters relating to Egypt; and (8) seeking clarification of UK, French and Israeli intentions to assure that they are committed to peaceful measures in the area.

Mr. Dillon reported that the British Ambassador had called to leave a memorandum proposing that the Suez Canal question be taken to the Security Council2 in order to seek the adoption of a resolution which would express regret that the Egyptian proposals do not conform to the six principles and calling for (a) acceptance by Egypt of the six principles and (b) negotiations to give effect to them. The British suggested that the United States should take the lead in the Council and that, if this were done, they would try to dissuade the French from taking the initiative. The Secretary indicated that he did not wish to be committed to any course of action in the Council at this time, pointing [Page 512] out that before we agreed to any further action in the United Nations we should be clear on our objectives, the feasibility of obtaining them, and basic intentions of the British and French.

The Secretary also referred to the draft statement which he had prepared for possible release upon the issuance of the Egyptian Canal declaration.3 Mr. Rountree observed that the Secretary’s draft statement would appear to be more suitable for use in connection with a possible Security Council action and suggested that a very brief statement merely expressing our disappointment with the Egyptian declaration and noting that it did not conform with the six principles of the Security Council might be more appropriate for an immediate release. It was agreed that our initial statement would have to be formulated in the light of the actual text of the Egyptian Canal declaration.

  1. Source: Department of State, Central Files, 974.7301/4–357. Secret. Drafted by De Palma. The source text is marked “draft”.
  2. The unsigned, undated memorandum, which begins with a discussion of a French suggestion concerning payment of Canal tolls, is ibid., 974.7301/4–457.
  3. The draft statement (no. 2), by Dulles, dated April 3, is ibid., 974.7301/4–357.