774.5 MSP/8–254: Telegram
No. 1352
The Ambassador in Egypt (Caffery) to the
Department of State1
144. I handed Egyptian Minister Foreign Affairs this morning drafts re economic and military aid.2 He said he would study them at once and get in touch with me again very soon.
I emphasized following points:
- 1.
- United States 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;
- 2.
- Character timing and amount US assistance will necessarily be related developments in area including among other factors Egypt’s fulfillment Suez base agreement;
- 3.
- 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;
- 4.
- Because Congressional action on legislation not yet completed additional changes texts agreements may become necessary;
- 5.
- Re economic aid amount will depend on subsequent agreement on specific projects such as those discussed November 1953;
- 6.
- Re military aid amount will depend findings military survey group which will be sent Egypt promptly after signature agreements.
Military assistance which will be provided during fiscal year 1955 following conclusion agreement represents initial increment in program which United States Government expects will enhance ability Egypt participate defense its area, but subsequent increments contingent Congressional authorization additional funds on annual basis.
Provisions and procedures reflected proposed MDAP agreements are standard, applying with few variations to similar agreements with approximately thirty other countries.