242. Telegram From the Embassy in the United Arab Republic to the Department of State1
980. Embtel 940.2 We are now at major watershed in US–UAR relations and actions next few days will have continuing and far-reaching effect those relations next few years.
Since my return from consultation many of my diplomatic colleagues, including representatives states not particularly friendly toward Nasser, such as British and Ethiopians, have expressed to me hope we will be able resume substantial PL 480 assistance to UAR. Most of them predict serious economic difficulties, not to say chaos, if we do not do so. They feel this would be tragic not only for Egyptian people but for Western interests here and that best interest US and its allies served by our keeping our hand in and maintaining position influence. They also believe UAR has made real effort remove causes irritation and that installation new Muhieddin Cabinet, although done for reasons internal administration, should lead to substantial improvement our relations providing we can meet UAR half way with aid.
Belief our relations now normalized also current among official Egyptians whom I have seen informally in recent days. Although not expressed in quite those terms by them, they indicate belief Muhieddin Cabinet signals new era US–UAR relations. This regard we are impressed with pragmatic attitude new govt taking on economic and administrative problems and its apparent intent concentrate on internal matters. This not to say Egyptians have abandoned adventure, but rather it looks to us as though Muhieddin will be considerably easier to live and cooperate with than Ali Sabri govt.
In these circumstances, and in view progress we have made on all matters we have raised with Egyptians since last spring, I sincerely hope we can avoid disappointing UAR now. Specifically, I hope that when Secretary sees Kaissouni on October 12 he will be able give him definite offer PL 480 aid, preferably on terms suggested Embtel 940 and at least as favorable as those we have given such countries as Yugoslavia. I am fully aware difficulties this may pose, but we estimate Egyptians have only enough flour to last until January and no alternative [Page 503] source supply in sight. In order avoid human suffering as well as for sake Western position here, we should act now when we have unusual opportunity to establish US–UAR cooperation on new footing. Cannot emphasize too strongly my belief delay in decision inevitably will mean loss that opportunity.
- Source: National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) 15–4 UAR. Confidential; Limdis. The telegram does not indicate the time of transmission; it was received at 10:23 a.m.↩
- Telegram 940 from Cairo, October 5, commented on the question of whether a new P.L. 480 agreement with the UAR should be based in whole or in part on Title IV of P.L. 480. Battle recommended a combination of Title I and Title IV, with Title IV not to exceed 25 percent in the first year. (Ibid.)↩