29. Memorandum of a Conversation Between the Deputy Under Secretary of State for Political Affairs (Murphy) and the British Ambassador (Caccia), Department of State, Washington, January 22, 19571

SUBJECT

  • Suez Negotiations

During his call on Mr. Murphy this morning Ambassador Caccia said that he had had occasion to talk to Ambassador Lodge last weekend regarding progress in the Suez negotiations. He had mentioned to Lodge his recent conversation with Secretary Dulles at which the latter had observed that, while Hammarskjold is in charge of the negotiations, the pressures that can be brought to bear on Egypt are in the hands of others. He said that Ambassador Lodge had informed him somewhat heatedly that the United States was in no position to bring pressure on the Egyptian Government and the only inducements it could employ were in the nature of a temporary withholding of certain economic benefits.

The Ambassador said that his Government felt that, unless progress is made toward a solution of the basic problem before the Canal is reopened we shall find ourselves back in the same situation we were in last year following the seizure of the Canal. He said he would like very much to discuss this matter again with Secretary Dulles at a very early date. Mr. Murphy said that this matter was receiving urgent attention now in the Department and that it may be possible very shortly for us to talk to the British regarding a course of action.

  1. Source: Department of State, Central Files, 974.7301/1–2257. Drafted by Elbrick.