Foreign Relations of the United States, 1952–1954, The Near and Middle East, Volume IX, Part 2

874.00/8–454: Telegram

No. 1353
The Ambassador in the United Kingdom (Aldrich) to the Department of State¹

secret

London, August 4, 1954—4 p.m.

609. Re Cairo’s 145 August 2² to Department, Foreign Office says Egyptians have raised in very off hand matter with Stevenson (possibly via Ambassador Caffery) questions of UK economic aid to Egypt and lifting arms embargo and referred to establishment joint committee to study UK economic and military aid.

While Her Majesty’s Government has been unable give much thought in past weeks to these questions they now being studied by Foreign Office, Treasury and War Office. Working level of Foreign Office unable predict what final outcome will be but thinks UK should for political reasons offer some economic aid.

Re military aid Shuckburgh this morning confidentially and personally informed Embassy Office that he hopes for governmental decision by end of week at latest. He personally favors reclassifying arms into two categories, one including only tanks and other heavy combat equipment and the other, all other arms and military supplies. He feels it would be undesirable from viewpoint over-all NE policy to lift arms embargo publicly and ostentatiously but is in favor quietly dropping embargo on broad second category mentioned above, reserving first category for consideration after signature agreement. Release first category items would of course not be made definitely conditional on signature. He also favors some prompt British gesture, such as immediate resumption deliveries on long-standing Egyptian order for [Meteors]. He assumes British will definitely wish to be considered as traditional supplier of certain equipment and states Belgians have also asserted claim as traditional suppliers some items.

Shuckburgh agrees with comments contained Cairo’s 154 August 3³ to Department and believes Her Majesty’s Government will be effectively helpful and forthcoming vis-à-vis Egyptians.⁴

Aldrich

1. Repeated to Cairo as telegram 12.
2. In telegram 145 from Cairo, Aug. 2, not printed, Ambassador Caffery reported that the Egyptian Foreign Minister inquired if the United States knew what the British intentions were with regard to providing Egypt with economic and military aid. (874.00/8–254)
3. Not printed.
4. In telegram 860 from London, Aug. 19, not printed, the Embassy informed the Department that the British were having a great deal of difficulty developing a firm policy on giving arms to Egypt, and that the matter was at that time before Prime Minister Churchill. (874.00/8–1954) The Embassy reported further on Aug. 30 in despatch 631, not printed, that the British Government had given very little consideration to the matter of granting Egypt economic aid as well, the reason being that the British were waiting until the financial aspects of the Suez base agreement had been settled and the agreement had been signed. (874.00/8–3054)