281. Telegram From the Department of State to the Embassy in Egypt1
1555. Department has for some time been thinking of possibility establishing some multilateral mechanism for economic assistance to Middle East. A specific proposal along these lines has now been made public. Pella, Foreign Minister Italy, has suggested establishment development fund for Middle East using repayments to US on “Marshall Plan” loans and direct contributions European countries. Pella considers such funds would be administered by European board with US designee as chairman. One possibility might be to use OEEC in some supervisory way and same countries would be members of fund. Pella has stressed however his ideas remain flexible both as to contributions [Page 669] and organization. Loans would be made to Middle Eastern countries for long term development projects. Stories appeared New York Times December 7 and 8.
Desire urgently your evaluation likely official attitude possibility your country’s cooperation with a Middle East Development Fund under European administration and US participation. In your discretion you may wish check confidentially with some knowledgeable contact but do not raise officially.
Reply immediately priority.
- Source: Department of State, Central Files, 880.0000/12–957. Confidential; Priority. Also sent priority to Amman, Damascus, Beirut, Baghdad, Jidda, Khartoum, and Tripoli. Repeated to Benghazi, Paris, and Rome.↩