Foreign Relations of the United States, 1964–1968, Volume XVIII, Arab-Israeli Dispute, 1964–1967

320. Telegram From the Embassy in the United Arab Republic to the Department of State¹

Cairo, September 7, 1966, 1352Z.

1246. Ref: State 35301.²

1. Former Treasury Secretary Robert Anderson had lunch with me Sept 6 immediately following meetings with Kaissouni and PriMin Mohieddin. He said he had followed script suggested by Sec Rusk emphasizing following points:

(A) USG unable make any food commitments to UAR at this time because our assistance is conditioned by Congressional attitudes and affected by pending legislation. Nevertheless USG has sincere desire for good relations with UAR and there are no inherent inhibiting factors. We do not ask UAR to abandon socialism or support US foreign policy. We do ask, however, that it be truly neutral between East and West and that it concentrate its energies on internal development.

(B) UAR will be judged by its performance and not by expressions of intent. We do wish UAR to withdraw from Yemen and believe that this can be done with honor. The UAR must come to terms with the IMF and the IBRD and bring its expenditures into line with its avail resources. It is now extended far beyond its capabilities.

(C) Public statements by senior UAR offs which tend to exacerbate differences between us are not helpful. There should be period of silence.

(D) Sec Rusk sincerely wanted to visit the UAR and still does and was unable to come last spring solely because of the pressures of other work. It was not a political decision.

2. Mohieddin accepted points made by Anderson, apparently without rancor, and made following comments:

(A) UAR wants to get out of Yemen but for this purpose needs clear and unambiguous agreement with the Saudis.

(B) The UAR is interested in private foreign investment, particularly in fields of industrial and economic endeavor which have international implications and which are beyond the UAR’s own ability to finance, e.g., petro-chemicals. Port Said free zone has been the subject of considerable contention with leaders of the ASU, and it is not likely that it will amount to a great deal in the near future. Other less controversial projects avail for foreign investment.

(C) The UAR needs USG help.

3. Anderson will provide me within few days with copy his memorandum of conversation with Mohieddin which I will forward to Dept by pouch.

4. Kaissouni expects to see Anderson prior his departure from Cairo and has indicated he desires advice as to what he should do at forthcoming IBRD-IMF meeting. Anderson convinced that UAR cannot meet hard currency obligations to U.S. and international agencies falling due next year and that it would be much better for GUAR frankly to inform Bank and Fund members this fact as soon as possible rather than await default with consequent increased bitterness and lack confidence this will entail.

5. I find Anderson’s visit has been useful and that repetition of line we have been taking here and in Wash DC by well-known Americans outside govt is all to good. He has been very cooperative.

Nes

1. Source: National Archives and Records Administration, RG 59, Central Files 1964–66, TRV ANDERSON, ROBERT B. Confidential; Limdis.
2. Telegram 35301 to Cairo, August 25, stated that former Secretary of the Treasury Robert Anderson’s forthcoming visit to Cairo was completely private, but that Secretary Rusk had briefed him along lines recommended by NEA. (Ibid.)