Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 1

Conference files, lot 60 D 627, CF 212: Telegram

No. 502
The Secretary of State to the Department of State¹

top secret
niact

Berlin, February 18, 1954—11 a.m.

Dulte 90. For Acting Secretary for discretionary distribution from Secretary. Eden met with me tonight with the following results:

1. EDC. We reviewed together conditions precedent to EDC and found ourselves in substantial agreement along lines of my lunch with Bidault and Alphand.² Cable follows.³

2. Egypt. Eden indicated that if Iran could be included with Turkey, he personally would be satisfied and ready to make concession on uniforms.

However, he said Churchill was very difficult on this subject, and he could not be confident of result until he saw situation after return to London. He said that if no new agreement could be reached, they would have to get along as best they could under the present treaty, and I said I thought we would then have to give economic aid to Egypt, particularly having regard to Soviet proposal regarding upper dam. Eden seemed acquiescent.

3. Iran. I said I did not think Anglo-Iranian could hold 50 percent position. We were not trying to get larger US position, but only trying to meet political realities in Iran. Eden said that he had thought 50 percent probably unobtainable, but hoped to get as close to this as possible with position for Dutch Shell. I emphasized US companies were not themselves seeking large participation, but only going along at government request and that our judgment would be entirely a political judgment based on estimate Iran situation.

4. East-West Trade. I urged only gradual relaxation on item-to-item basis, and Eden said he completely concurred in this approach, and would look into the matter on his return.

5. Middle East Defense. I said we were encouraged by degree to which Turkey, Pakistan plus possibly Iran and Iraq had developed spontaneously on basis of mild suggestion our part. I felt this very encouraging but recognized UK had problems in relation to India. Eden said he recognized these problems, but felt that on balance the project was good.

Dulles

1. Drafted by Secretary Dulles.
2. For a report on Dulles’ luncheon meeting with Bidault, see the memorandum of conversation, Document 497.
3. Presumably a reference to Dulte 91 from Berlin, Feb. 18, which stated that Dulles had had lunch with Bidault and that he was bringing a memorandum of the conversation with him when he returned to Washington. (Conference files, lot 60 D 627, CF 212)