Office of the Historian

93. Telegram From the Embassy in Benghazi, Libya, to the Department of State0

Benghazi, October 22, 1961, 3 p.m.

73. From Williams. In audience with me October 20, Prime Minister raised question of economic aid.1 He reviewed background starting with 1954 agreement, described creation and eventual dissolution (“because of dissatisfaction of people”) of Libyan-American reconstruction cooperation and joint services and eventual creation of development council.

Although rental of Wheelus had proceeded successfully, American economic assistance to Libya in past, regulated by annual appropriations, had been difficult for planning purposes but this year had virtually ceased. Popular pressures against foreign military bases in Libya continued to build up. It was important that US economic aid continue so that Libyan Government could show people mutually beneficial aspects of US-Libyan agreements. Prime Minister had instructed Foreign Minister to set the foregoing down in memorandum which would soon be presented to US.

Prime Minister concluded with assurances continued cooperation, etc.

I made polite non-committal reply, saying would examine problem on receipt of memorandum.2

Dorman
  1. Source: Department of State, Central Files, 110.15-WI/10-2261. Confidential.↩
  2. On September 14, Libyan Ambassador Mohieddine Fekini told President Kennedy that Libya could look forward to becoming economically self-sufficient in another 4-5 years and that he hoped the United States would be able during this period to give Libya’s economic and financial needs special consideration. President Kennedy said that he would look into the matter once the foreign aid legislation currently before Congress was enacted. (Memorandum of conversation; ibid., 773.5-MSP/9-1461)↩
  3. On October 24, Williams sent the Department a preliminary report on his 3-day visit to Libya. He noted that 10 years of U.S. economic aid had not had the economic and social impact that the United States might have hoped for. Williams, therefore, proposed a careful review of U.S. objectives, policy, and operations in Libya. (Telegram 303 from Khartoum; ibid., 110.15-WI/10-2461)↩