641.74/5–1353: Telegram

No. 1162
The Ambassador in Egypt (Caffery) to the Department of State

secret

2422. Personal for Smith from the Secretary. The following is formula referred to in preceding message as possible acceptable compromise in UK–Egyptian dispute.

“In order to clarify certain points of misunderstanding that have arisen in recent discussions between Egypt and the UK the following memo of understanding is hereby agreed and constitutes the terms of reference for the ‘Base Committee:’

“To draw up plans for the transfer of the present military base in the Canal Zone to Egyptian control and for keeping it in working order and use so that it may strengthen the area by continuing to supply forces outside Egypt and be available for immediate use in the event of hostilities endangering peace and security of area.

[Page 2070]

“Recommendations will be made regarding the installations and the equipment within the base area and the equipment in the base under the following considerations:

(a)
That the Egyptian Government in exercise of its sovereignty over base will undertake by the agreement to insure the security of British property therein.
(b)
That the present level of depot stocks may be maintained but not increased except by consent of the Egyptian Government.
(c)
That the British experts needed shall be limited to the absolute minimum numbers required for the efficient operation of the installation and the maintenance and current withdrawals and additions of British equipment left in the base.
(d)
That arrangements will be proposed for the training of Egyptian personnel to replace British personnel utilized for the above purposes within a minimum period to be agreed upon between the two delegations. At the end of this period British personnel will no longer be stationed within the base area except as may be agreed to at that time by the Egyptian Government. It is understood that at the end of the above time period British inspectors may be attached to the staff of the UK Ambassador to Egypt and will be allowed to inspect Egyptian maintenance of British-owned supplies in the base and examine the measures taken by the Egyptian base commander to carry out British directions regarding the maintenance and disposition of such supplies, equipment and facilities.
(e)
It is understood that channels from London effecting the above matters will be to the UK Military Attaché attached to the UK Embassy in Egypt. These instructions will be forwarded to the Egyptian base commander through such channels as the Egyptian Government may prescribe, it being realized that efficiency and speed of communication is of the utmost importance in matters of this nature.
(f)
That any arrangements proposed above shall not be inconsistent with Egyptian sovereignty nor with British ownership and use of the property concerned.
(g)
That the Egyptian Government is conscious of the responsibility placed upon it as custodian of the base area, the purpose of which is to deter aggression against Middle East, as a whole, to supply forces beyond Egypt’s borders and to increase the defenses of Egypt itself including the Suez Canal water-way. The Egyptian Government is of the opinion that arrangements for the defense of the Middle East as a whole including Egypt should be arranged at the first feasible opportunity. These should allow for the combined efforts of the Associated States in the area and such other forces as may be available to help protect the territorial integrity and full sovereignty of the States in the area. The Egyptian Government further recognizes that an interim period of transition will be needed to effect the change-over from strategic plans that may be in being at the present time and the coming period in which new plans will be prepared by cooperation among all the various parties concerned. During such a transition period the Egyptian [Page 2071] Government recognizes and has no intention of interference with, the right of the British Government to direct the shipment of its equipment and supplies in the base to areas and forces outside Egypt.
(h)
That the Committee will not concern itself with the duration in time of the arrangements which it proposes. This will be determined by the two delegations.”

Caffery