Foreign Relations of the United States, 1955–1957, Arab-Israeli Dispute, 1957, Volume XVII

84. Telegram From the Department of State to the Mission at the United Nations¹

Washington, February 11, 1957—7:18 p.m.

Gadel 140. Interim arrangement for Suez Canal. Delga 690² refers to question whether designation by Egypt of agent to receive Canal tolls would imply that account held by agent would stand in name of Egypt and be subject to Egyptian control. Dept considers this would not be the case.

Under arrangement we have envisaged, Egypt would appoint neutral and impartial agent, such as IBRD, to receive all tolls. Agent would then have duty, under interim arrangement, to handle receipts in following manner:

(1) 50% of tolls received would be paid by agent at once to Egypt;

(2) Remaining half would continue to be held by agent pending overall settlement of Suez Canal problem in accordance with six principles approved by Security Council on October 13; disposition of this remaining half would be provided for in that settlement; agent would hold these funds in separate account under conditions just stated.

Dulles

1. Source: Department of State, Central Files, 974.7301/2–857. Confidential. Drafted and approved by Meeker who signed for Dulles. Repeated to London.
2. In Delga 690 from USUN, February 8, Lodge forwarded to the Department of State a summary of a conversation between himself and British Representative Dixon concerning proposed interim arrangements for the Suez Canal. (Ibid.)