2. Note From Secretary of State Dulles to Secretary-General Hammarskjöld1
New
York, December 31,
1956.
My Dear Hammarskjold: I enclose herewith a copy of
the informal memorandum which I used as a sort of a talking paper
with you this afternoon in relation to the putting up of funds to
help finance the reopening of the Suez Canal.
It was a very great pleasure to have seen you and to have had the
good talk with you.
With best wishes for a good New Year.
Sincerely yours,
[Enclosure]
Washington, December 31, 1956.
MEMORANDUM3
This memorandum is written to cover certain points which it did
not seem desirable to include in the formal reply made by the
United States to the Secretary General’s note of December
25th.4
These points
[Page 4]
are
considered by the United States Government to be important in
the working out and implementation of any plan for clearing the
Suez Canal. They relate to assurances from some of the
Governments most directly concerned with the Suez Canal
problem.
In the Secretary General’s note of December 25th it was stated
that “the Government of Egypt has given its assurance that the
United Nations will have the full cooperation of that Government
in the execution of its part in the Canal clearing operations”.
It was also emphasized that the funds being solicited for
initial work in Canal clearance were in the nature of an
advance. It is the understanding of the United States that the
Secretary General will make earnest efforts to secure
assurances: (1) that negotiations, under the auspices of the
United Nations, will be pursued rapidly for an over-all
agreement on the Suez Canal problem in accordance with the six
principles approved by the Security Council in its resolution of
October 13, 1956, and (2) that there will be included in the
over-all agreement provisions for the repayment of all advances
made by United Nations Members, to the extent that repayment is
not otherwise provided for, in order to facilitate the clearance
of the Canal and the restoration of its ancillary facilities. It
is also the understanding of the United States that assurance
will be sought from the Government of Egypt that, pending a
final settlement of the Suez Canal problem, any interim
operation of the Canal will be in accordance with the six
principles set forth in the Security Council’s resolution.
The above points are of importance in laying the foundation for a
satisfactory financing of the total cost of clearing the Suez
Canal. They are also important in regard to the actual reopening
of the Suez Canal and its serving as a secure international
waterway open at all times to the ships of all nations.
The United States is prepared to make an advance of funds, as
indicated in the reply to the Secretary General’s note of
December 25, under arrangements taking account of the points
summarized in this memorandum. The United States understands
that the International Bank for Reconstruction and Development
has agreed to act as fiscal agent in the handling of all funds
advanced.
