15. Telegram From the Department of State to the Embassy in the United Arab Republic1

3879. Following summary for information only and contents should not be disclosed to foreign officials. It is uncleared and subject to amendment upon review of memcon.

During call UAR Minister Treasury Kaissouni February 20/2 the Secretary affirmed President Johnson’s intention continue established policies toward UAR. Commended moderation of Arab summit and UAR handling difficult situation. Emphasized our interest UAR improvement relations Saudi Arabia.

Kaissouni reviewed US aid relationships and noted AID Administrator’s indication earlier in day of possibility going ahead with $20 million loan in response UAR earlier request for $30 million commodity program financing.

Kaissouni expected obtain memorandum understanding to date with IMF re stabilization program leaving some points for further discussion and agreement in Cairo.

Since agreement with IMF a condition for possible US loan he hoped progress to date would permit US move ahead.

Secretary confirmed we had decided in principle go ahead with loan and would have to look at situation with Fund.

  1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) 9 UAR. Confidential. Drafted by Enoch S. Duncan and approved by Jernegan.
  2. A memorandum of the portion of Secretary Rusk’s conversation with Kaissouni concerning the UAR request for a $30 million commodity loan is ibid. A memorandum of their discussion of general U.S.-UAR relations is ibid., POL UAR-US.