61. Telegram From the Department of State to the Mission at the United Nations1
Gadel 133. Suez Canal. Information indicates Canal will be open for some traffic before March 1 and even possibly within two weeks. This requires interim arrangements agreed to by Egypt before Canal reopens on payment of tolls and perhaps other matters such as priorities. Department notes (Delga 651)2 SYG report that Egypt has now linked “formal conversations” re Canal “settlement” to Israeli withdrawal. Department sees no justification for such linkage, in view of rights of users under 1888 Convention. However, we note that Egypt has not linked Israeli withdrawal with clearance and reopening of Canal to traffic, which we assume covers interim arrangements.
We therefore think time has come for SYG to secure Egyptian agreement to interim arrangement pending final settlement, in our view, such interim arrangement should include following elements: [Page 97]
- (1)
- Payment of all tolls to neutral agency such as IBRD or UN, with at least one-half held to be disposed of according to agreement which will implement six principles and constitute definitive settlement. Designation of IBRD or UN for example by Egypt as agent to receive tolls as above should satisfy Egyptian point that tolls be “legally paid to Egypt”.
- (2)
- Approximately one-half of tolls could at same time be turned over by such agency to Egypt. Prior to closing of Canal, Egypt was receiving about 45 percent of tolls, balance being paid into accounts of old Company.
- (3)
- Believe unwise at this stage to discuss or try to settle question of repaying advances for Canal clearance, including any question of surcharge.
This arrangement should cover all tolls pending final agreement so that all users treated alike.
Request you convey to SYG foregoing views of Department.
- Source: Department of State, Central Files, 974.7301/2–657. Confidential. Drafted by Metzger and Meeker; cleared by Rountree, Walmsley, and Jones by phone; and approved by Dulles.↩
- Document 58.↩