322. Memorandum From the Director of the Office of Near Eastern Affairs (Wilkins) to the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Rountree)1

SUBJECT

  • Overt Measures Taken with Respect to Egypt

In connection with the Secretary’s inquiry, there is attached a paper setting forth, in outline form, the overt measures taken with respect to Egypt and related measures in connection with other Arab and African states under Omega.

We believe that all possible measures have been taken or are being taken with regard to Egypt itself. The only other overt measure that we can think of would be the recall of Ambassador Hare, and this would, of course, be the first step in the rupture of diplomatic relations.

[Page 609]

[Enclosure]

OVERT MEASURES TAKEN WITH RESPECT TO EGYPT

1.
Denial of export licenses for arms shipments, for commercial vehicles intended for the Egyptian armed forces, for spare parts for Egyptian airlines Misair, and for training films and other material requested by Egyptian military authorities. Denial of Egyptian requests for training in US service schools.
2.
Termination of Aswan Dam negotiations.
3.
Withholding approval of pending requests under Title I, PL 480.
4.
No reactivation of CARE or similar programs.
5.
Continued blocking of Egyptian funds in the US except for a few hardship cases involving US commercial interests.
6.
No accommodation to private American contracts with Egypt, the execution of which is dependent on the release of blocked funds (for example, Hilton Hotel).
7.
Counseling of prudence to US shippers regarding the use of the Suez Canal and the payment of dues under protest.
8.
Cancellation of uncommitted FY/55 economic development funds for Egypt and no scheduling of future aid programs.
9.
No Export-Import Bank loans to Egyptian companies.
10.
Closing of Fulbright office in Egypt as of June 30.
11.
Heavy reduction in the Exchange of Persons Program with Egypt.
12.
Continued adverse effect of the US cotton policy.

RELATED OVERT MEASURES IN CONNECTION WITH OTHER ARAB AND AFRICAN STATES

1.
Active support to King Hussein of Jordan, including economic and possibly limited military assistance.
2.
King Saud’s visit to the US and the conclusion of the renegotiation of the Dhahran Air Facilities Agreement and the five-phase military program.
3.
Support for and encouragement of close Saud-Hashemite relations.
4.
Active support to President Chamoun of Lebanon and the present government, including the furnishing of economic and military assistance.
5.
Fostering of closer relations with the Sudan and encouragement of Sudan–Ethiopia–Uganda cooperation in connection with possible renegotiation of the Nile Waters Agreement.
6.
Continuation of economic and military assistance to Iraq.
7.
Active economic and military support to Libya.
8.
Fostering of closer ties with Morocco and Tunisia.
9.
Forthcoming visit to the Yemen by Ambassador Wadsworth to seek closer US-Yemeni relations.
10.
Continuing restraint on Israel in connection with its attitude towards the Arab states.
11.
Approval of the American Doctrine and the Richards Mission.
12.
US offer to adhere to the Baghdad Pact military committee.
13.
The Vice President’s trip to Africa.
14.
Urging of British to reach an acceptable settlement of the Buraimi dispute with Saudi Arabia.
  1. Source: Department of State, Central Files, 611.74/5–957. Top Secret; Omega. Drafted by Stabler.