774.5 MSP/7–2854: Telegram
No. 1349
The Secretary of
State to the Embassy in
Egypt1
priority
144. Caffery authorized inform GOE: 1) US prepared at this time to enter into discussions re extension economic and military assistance in fulfillment commitment President’s letter to Naguib July 15, 1953; 2) He is ready provide GOE with draft texts agreements whenever Egypt desires; 3) US aid will be for purpose assisting Egypt in implementing her plans for economic development and in strengthening her armed forces in order discharge increased responsibilities Egypt assuming under Suez Base Agreement; 4) Character, timing and amount US assistance will necessarily be related developments in and including among other factors Egypt’s fulfillment Suez Base Agreement; 5) President will be asked determine Egypt eligible for military assistance on grounds among other factors Suez Base Agreement constitutes arrangement which requires Egypt take important part area defense.
Accordance recommendations Embtel 962 we eliminating clauses tying agreements specifically to Egypt’s provision of bases. We agree language Article I Para 2 military assistance agreement3 adequate meet requirements US–UK Agreed Minute.
Following telegrams2 give changes in texts military and economic agreements which should be made prior presenting them Egyptians and recite problems involved in pending legislative developments particularly with regard economic agreement. Because Congressional action on legislation not yet completed you should make clear Egyptians additional changes texts agreements may become necessary.
We wish avoid difficulties which would arise from citing specific amounts aid. Re economic aid Caffery should state amount will depend on subsequent agreement on specific projects such as those discussed November 1954 (Joint Embassy-USOM Despatch 1359).2
[Page 2290]FYI telegram follows re magnitude economic aid. Re military aid Caffery should state amount will depend findings military survey group which will be sent Egypt promptly after signature agreements. FOA assumes Stevens can assist in discussion economic aid.
View extensive press speculation and statements in Cairo we feel unless GOE has objections it may be advisable issue press release announcing initiation negotiations and containing appropriate references to safeguards against misuse arms for aggressive purposes. Request your views.