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

774.5 MSP/10–2754

No. 1366
Memorandum by the Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Byroade) to the Secretary of State¹

secret

Washington, October 27, 1954.

Subject:

• Military Assistance to Egypt

I. Sequence of Events:

(a) December 9, 1952—Signature of reimbursable military assistance agreement under Section 408(e).

(b) July 15, 1953—Letter from President Eisenhower to General Naguib, stating that we would enter into firm commitments to provide Egypt with military and economic assistance simultaneously with the signature of an agreement in principle on the Suez Base.

(c) July 27, 1954—Signature of “Heads of Agreement” between the UK and Egypt on the Suez Base.

(d) August 2, 1954—Draft of military assistance agreement given to Egypt by Caffery.

(e) August 29, 1954—Egyptian Foreign Minister informed Caffery Egyptian Government had decided not to request military aid from the US at this time because of internal political considerations which required the Government to move slowly towards closer association with the West.

(f) August 30, 1954—Egyptian Ambassador informed the Department that Colonel Nasir did not wish to be understood as rejecting US military aid in principle. Because of internal opposition he wished to postpone a decision for the time being.

(g) During this period Colonel Nasir sent several messages . . . emphasizing that he was not rejecting US military aid but merely postponing negotiations.

(h) October 19, 1954—Signature of final Suez Base Agreement.

(i) October 22, 1954—Egyptian Ambassador informed the Department that because of the good reception given the final Suez Base Agreement and the generally improved internal political situation, Colonel Nasir wished to resume negotiations on military aid.

II. Procedures Planned: (The procedures outlined are based on OCB decisions of September 29 and October 6, 1954.)²

(a) . . . inform Nasir that the US is prepared to resume military aid negotiations and to send immediately a military survey team in civilian clothes to discuss with Nasir the factors involved in a military aid agreement and, ostensibly, Egyptian purchases of arms in the US. Should a grant military aid agreement be concluded, the team also would determine the items which might be furnished under the agreement.

(b) . . . provide Egypt . . . approximately $3 million to be used by Egypt to purchase military equipment in the US, principally morale building items.

(c) Resumption of negotiations by the Embassy at Cairo on the basis of an agreement modeled on the Iraq Agreement and including specifically assurances against aggression and the statement that the character, timing and amount of our aid will be related to developments in the area.

(d) Grant aid to be in the magnitude of $20 million.

1. This memorandum was drafted by Burdett.
2. No record of these decisions has been found in the OCB files in the Department of State. Minutes of the Sept. 29 meeting are in OCB files, lot 62 D 430, “OCB Minutes, II”.