774.5 MSP/8–2954: Telegram
No. 1357
The Ambassador in Egypt (Caffery) to the
Department of State1
268. Minister Foreign Affairs told me last night that after careful consideration Egyptian Government has decided not to ask military aid from US at this time. He said Egyptians realize US legislative requirements would necessitate MSA agreement along lines of draft which now in their hands but fear adverse public reaction to such agreement. Although full implications for the future difficult to assess, Fawzi insisted this decision does not affect GOE’s policy of working toward closer alignment with west but is based solely on internal political considerations which require government to move slowly. He strongly urged that, in view of decision not to request military aid, US raise amount of economic aid for Egypt. He asserted substantial economic aid (a) would have very beneficial effect on public attitude toward US and (b) would permit Egypt make modest start on building up its strength by purchasing arms out of its own budgetary resources.
Fawzi then asked me to meet with him Tuesday evening to begin negotiation of economic aid agreement. I agreed.
Comment. This development not surprising in view GOE’s domestic political problems. Furthermore it relieves US of commitment to extend arms aid to Egypt. In terms of US relations with Egypt, this decision (a. removes prospect that necessarily limited arms aid program would have provoked adverse reaction, and (b) it does not alter excellent opportunity to improve US position while strengthening [Page 2298] forward-looking regime through substantial grant economic assistance on development projects.
- Repeated to London as telegram 68, to Paris as telegram 6 for Reinhardt, and unnumbered to Bonn for Satterthwaite, and to Rome, Ankara, Karachi, the Arab capitals, and Tel Aviv.↩