223. Circular Telegram From the Department of State to Certain Diplomatic Missions1
497. Regarding 400,000,000 ruble loan to UAR, we recall Soviet Ambassador to Egypt announced in July 1956, following withdrawal Western aid offers, that USSR was prepared assist Egypt with financing for project upon Egyptian request. So far as we know, this offer has remained open and Egyptian planning with respect to first phase of project has continued. Nasser specifically mentioned Egyptian plans this connection in July 23, 1957 report to Parliament and again referred to “two-phased ten-year plan for building Aswan High Dam with our own resources” in talk with newsman last month. Nasser has stated privately outside assistance to finance project would be welcome, possibly through use some of uncommitted portion Soviet line of credit or perhaps through IBRD. While Nasser in conversation with IBRD President Black October 16 did not request IBRD assistance,2 it was indicated long term credits from unspecified source might become available.
Department has made only brief and factual comment to press (reported separate telegram)3 in order portray Soviet-UAR agreement more as outgrowth of past attitudes of the parties on this subject than as any sudden and radically new departure in their relations. Addressees authorized take similar line in their official contacts in effort set Soviet announcement in perspective.
- Source: Department of State, Central Files, 886B.2614/10–2558. Confidential. Drafted by Brewer on October 24, cleared with NEA/P and EE, and approved and signed for Dulles by Rountree. Sent to Cairo, Baghdad, Beirut, Jidda, London, Khartoum, Paris, Moscow, Tel Aviv, and Damascus.↩
- The Embassy in Cairo transmitted Black’s account of the meeting with Nasser in telegram 1202, October 20. (Ibid., 241.86B41/10–2058)↩
- Circular telegram 496, October 25. (Ibid., 886B.2614/10–2558)↩