230. Telegram From the Department of State to the Embassy in Egypt1

72667. Subject: Brown-Ali Letter.

1. (S-entire text)

2. Following is text of letter from SecDef Brown to Egyptian MinDef Ali dated March 23 confirming discussions held between the two on March 19:

Begin text: Quote: Dear Mr. Minister:

In the context of the peace treaty between Egypt and Israel, the United States is prepared to enter into an expanded security relationship with Egypt with regard to the sales of military equipment and services and the financing of at least a portion of those sales, subject to such congressional review and approvals as may be required.

With respect to financing, the President is prepared to recommend to Congress that the United States provide military equipment and services during the next three years of a value of 1.5 billion dols, with up to 500 million dols annually in foreign military sales (FMS) credits. The credits will be made available on the following terms: current interest rates, a ten-year deferment of payments on principal, and twenty years to repay the loan thereafter.

The United States is prepared in general to supply the items of equipment we discussed and which are listed in a classified attachment to this letter. In this connection, the United States agrees to dispatch teams to Egypt in the very near future to survey and discuss Egyptian needs for naval forces, air defenses, and ground force armored and other vehicles. The United States is also pleased to receive an Egyptian team in Washington in the near future to discuss the needs of the Egyptian Air Force. Signed: Sincerely, Harold Brown. End text.

3. Following is text of attachment to above letter. Begin text: Quote. The United States is prepared to approve the sale of the following equipment and services to Egypt:

—Jet training aircraft (e.g., of the T–38 type)

—10 additional C–130 aircraft

—16 CH–53 helicopters

—aircraft ECM pods

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—12 improved HAWK batteries

—4 TPS–59 three-dimensional radars

—4 destroyers of the US Gearing class, henceforth to be referred to as quote frigates unquote

—Harpoon and Phalanx weapons systems for installation on frigates, number to be determined

—pressure testing of diesel submarine hulls

—800 M113 armored personnel carriers

—technical data package to upgrade T–54 and T–55 tanks

—lorries and tractors, number to be determined.

The United States is willing to consider favorably the following items of equipment, subject to further discussion and definition:

—F4 Phantom aircraft

—radars for detecting low-flying aircraft, of a type to be determined by the Air Defense Survey

—diesel submarines of the Guppy type, following evaluation of the program for pressure testing existing Egyptian submarine hulls

—auxiliary equipment (e.g., ground radars, communication equipment, forward and side looking camera, equipment for frogmen)

—patrol boats

The United States also maintains its offers of the following equipment:

—cruiser (USS Albany)

—CH–47 helicopters

—additional F–5E aircraft.

Vance
  1. Source: National Archives, RG 59, Central Foreign Policy File, D790135–0375. Secret; Immediate. Drafted by Zweifel; cleared for information by Keene, March, Small, Flaten, and Gaffney; approved by Marthinsen. Sent for information Immediate to Tel Aviv. Sent for information to the White House and the Secretary of Defense.