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1555801
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Egypt - President Sadat (2)
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1555801
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document
title
Egypt - President Sadat (2)
collections
Presidential Correspondence with Foreign Leaders (Ford Administration)
Presidential Correspondence with Foreign Leaders
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Lebanon
Egypt
Germany (West)
Economics
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1555801
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1976-12-31
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12
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1976
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1975-11-01
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11
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1975
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The original documents are located in Box 1, folder "Egypt - President Sadat (2)" of the National Security Adviser's Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 1 of the NSA Presidential Correspondence with Foreign Leaders Collection at the Gerald R. Ford Presidential Library [11/1975] 1s Ed GERALD A LISAARY FORD 1B THE WHITE HOUSE WASHINGTON Hen Security FORD BERALD a ) THE PRESIDENT HAS SEEN Dear Mr. Ford, President of the United States, Washington, D. C. On leaving your great country it is highly gratifying to convey to Mr. President and Mrs. Ford as well as American officials in my own name and on behalf Mrs. Sadat, my family, and my party our heartfelt appreciation and profound appreciation for the warm reception and cordiality afforded us during our stay in your lovely country. I wish also to express our sincere thanks to Senators and Congress Members. I was very happy for having the chance to address them. It pleases me to add that this visit has given us the opportunity to receive and touch the aspect of progress and advancement achieved by the USA in many different fields. I am very confident that the meetings and the fruitful talks that we had with each other will certainly contribute to a great extent to strengthen the ties of friendship and cooperation existing between our two countries. As a matter of fact, I would like to inform you also that Egyptian people while following the news of this historic visit sense the rapid development of the mutual confidence growing between our two people. And we on our part have a growing conviction that the serious efforts exerted by the USA will play a vital role on the way leading to the comprehensive settlement in the Middle East. FORD fr. GERALD 1 2 Relating to this it pleases me much to hail the sincere efforts especially that made by Your Excellency and Dr. Henry Kissinger. It also reflects the seriousness and dedication in finding moresolutions for an apparent international problem and it also reflects noble spirit. Aspiring for peace and progress while extending to you, Mr. President, my sincere greetings, I wish you the best of health and happiness as well as continued progress, advancement, and prosperity for the friendly American people. With assurance of my esteem and highest appreciation, Muhammad Anwar Sadat EYES ONLY -DIRECT 0 DEC 75Z 04 07 OF STATE 002187 UNITED Department of State NOD081 TELEGRA STATES 8 31 STATE 289624 / of 13 URIGIN NODS-00 S INFO OCT-01 ISO-00 1071 R DRAFTED BY NEA:ALATHERTON, JR./MLK APPROVED BY THE SECRETARY S/SMI:DUMACK MSC:GENERAL SCONCROFT 076161 0 0993237 DEC 75 ZFF4 Fig SECSTATE MASHDC TO AMEMUASSY CAIRO IMMEDIATE 8 FC E I STATE 289624 NODIS CHEROKEE tell 116521 GDS TAGS:, PFCR, us, EG S SUBJECT: MESSAGE FROM THE PRESIDENT TO PRESIDENT SADAT FOR THE AMBASSADOR FROM THE SECRETARY 1. YOU BHOULD ARRANGE TO CONVEY FOLLOWING MESSAGE IRGENTLY FROM PRESIDENT FORD TO PRESIDENT SADAT, 2. HEGIN MESSAGE: DEAR MR. PRESIDENT: I AM RRITING YOU/THIS PERSONAL NOTE BECAUSE I KNOW THAT OUR DECISION TO VOTE AGAINST THE RESOLUTION BEFORE THE SECURITY COUNCIL IN CONNECTION WITH ISRAEL'S RECENT A12 ATTACKS IN LEHANON WILL PRESENT DIFFICULTIES FOR YOU, AS WE HAVE ALWAYS DISCUSSED PROBLEMS BETWEEN us WITH COMPLETE FRANKNESS, I WANT TO SET FORTH FOR YOU THE CONSIDERATIONS WHICH LED TO OUR DECISION. S SEARET lib 3/3/04 FORD R GERALD invedix NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET s STATE Department of State AMERICA SECRET TELEGRA STATES OF FACE 02 STATE 289624 DDH AM3aSSADOR TO THE UNITED NATIONS, ON MY INSTRUCTIONS, HAS STATED EMPHATICALLY IN THE SECURITY COUNCIL THAT 45 STRONGLY DEPLORED THE ISRAELI ATTACKS AND CONSIDERED THEM DISPROPORTIONATE TO THE PROVOCATION. WE HAVE BEEN DEFPLY MOYED BY THE HUMAN TRAGEDIES RESULTING FROM THOSE ATTACKS. IN THESE CIRCUMSTANCES, OUR NEGATIVE VOTE WA8 CAST WITH A HEAVY HEART. WE MADE A MAJOR EFFORT TODAY TJ PENSUADE OTHER MEMBERS OF THE COUNCIL TO AGREE TO SOME ADDITIONAL LANGUAGE IN THE RESOLUTION WHICH WOULD HAVE RECOGNIZED THAT THE ISRAELI ACTION AGAINST PALES- TINIAN COMMANDO INSTALLATIONS IN AND NEAR THE REFUGEE CAMPS IN LEBANON CANNOT RE JUDGED IN ISOLATION FROM THE FACT THAT INNOCENT ISHAELI LIVES HAVE RECENTLY BEEN LOST AS A RESULT OF COMMANDO ATTACKS, WE WERE NOT SEEKING s RESOLUTION WHICH WOULD HAVE EQUATED ONE ACTION FITH THE OTHER, BUT MERELY SOME REFERENCE TO THE CONTEXT IN WHICH THE ISRAELI ATTACKS TOOK PLACE. I ALSO RECOGNIZE THAT YOUR GOVERNMENT WAS UNDERSTANDING OF WHIT WE WERE SEEKING TO ACCOMPLISH, BUT THE FORCES S ALIGNED AGAINST us COULD NOT BE OVERCOMA. HAD WE NOT VOTED AGAINST THE SECURITY COUNCIL RESOLUTION THOSE 81110 ARE SEEKING TO UNGERMINE OUR STRATEGY FOR ACHIEVING A JUST AND LASTING PEACE IN THE MIDDLE EAST 1:01/L0 HAVE BEEN GIVEN A MAJOR HEAPON TO USE AGAINST us. FURTHERMORE, FAILURE TO OPPOSE A' RESOLUTION WITHOUT ANY BALANCING ELEMENT IN IT WOULD HAVE STRENGTHENED THE HAND OF THOSE IN ISRAEL WHO SEEK TO FRUSTRATE THE PEACEMAKING PROCESS. IN DECIDING TO VOTE AS WE DID IN NEW YORK, WE HAVE HAD TO KEEP IN MIND THE NEED TO CONSERVE OUR INFLUENCE FOR THE DIFFICULT TASK THAT STILL LIEA AMEAD FF WE ARE TO SUCCEED IN THE LONG- TENN STRATEGY FOR PEACE THAT YOU AND I HAVE so OFTEN DISCUSSED. OUR DETERMINATION TO CONTINUE OUR EFFORTS WAG CLEARLY DEMONSTRATED IN THE POSITION WE TOOK IN THE SECURITY COUNCIL DEBATE ON EXTENDING THE UN FORCES ON THE GOLAN HEIGHTS WHEN, AS YOU KNOW, WE STAYED FIRMLY ON COURSE DESPITE SEVERE PHESSURES ON US TO VETO THAT RESOLUTION AS Wills SECHEF FOHU 02 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET DEPLATMENT or STATE Department of State UNITED AMERICA TELEGRA SECRET STATES of PAGE #3 STATE 289624 I HOPE THAT THE FUREGOING COMMENTS WILL HELP YOU, MR. S PRESTRENT, IN UNDERSTANDING THE DIFFICULT CONSIDERATIONS NE HAU TO WEIGH IN DECIDING UPON THE ACTION WE TOOK IM THE CURRENT SECURITY COUNCIL DEBATE. SINCERELY YOURS, GERALD R. FORD Eidly MESSAGE. KISSINGER S N S SECRET BERNED ARVAY ? FORD NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET WHY MiScounti 3 OF STATE EYES ONLY-DIRECT Original re emored for exhibit ZODIS Department of State UNITED TELEGRAM Runposes 8/15/06 STATES OF SE RET NOD477 PAGE a1 CAIRO 00371 1213527 44 ACTION NODS-00 INFO OCT-01 ISO-00 /001 W 059603 0 1213197 JAN 76 FM AMEMBASSY CAIRO TO SECSTATE WASHDC IMMEDIATE 9126 SECRE T CAIRO 0371 ZODIS NODIS CHEROKEE EO 11652: GDS TAGS: PFOR EG US SUBJECT: MESSAGE FROM PRESIDENT SADAT TO PRESIDENT FORm 1, WHEN MEETING WITH FAHMY THIS AFTERNOON, HE HANDED ME A SIGNED LETTER, UNDATED BUT PRESUMABLY OF TODAY'S DATE, FROM PRESIDENT SADAT TO PRESIDENT FORD. TEXT FOLLOWS: 2. QUOTE DEAR MR. PRESIMENT, I WAS VERY PLEASED TO RECEIVE YOUR KING LETTER OF DECEMBER 0, 1975. MAY I SEIZE THIS OPPORTUNITY 200-0 TO REITERATE HOW MUCH MRS. SANAT AND I HAVE ENJOYED OUR VISIT TO YOUR CREAT AND HOSPITABLE COUNTRY? AS I HAVE MENTIONED TO YOU, OUR STAY WAS EXTREMELY FRUITFUL AND REWARDING. ABOVE ALL, IT WAS AN OPPORTUNITY FOR US TO MEET AGAIN WITH YOU AND YOUR WONDERFUL FAMILY IN AN ATMOSPHERE OF GENUINE FRIENDSHIP AND UNDERSTANDING. I HAVE ALWAYS FOUND YOU A STATEMAN OF VISION AND COMPASSION. YOUR CONCERN FOR PEACE AND COOPERATION FORD ? AMONG NATIONS IS MOST GENUINE AND PEASSURING. UNDER YOUR WISE AND ENLIGHTENED LEADERSHIP, GERALD LIBRARY SECRET- EYES ONLY-DIRECT big 3/3/04 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY DEPARTMENT OF STATE Department of State UNITED STATES OF AMERICAN TELEGRAM SECRET PAGE 02 CAIRO 00371 1213527 THE UNITED STATES IS HIGHLY QUALIFIED TO PLAY THE CONSTRUCTIVE AND POSITIVE ROLE WHICH IS COMMENSURATE WITH ITS AWESOME GLOBAL RESPONSIBILITIES. THE MIDDLE EAST PROBLEM IS A GOOD CASE IN POINT, WHERE A CONS-STENTLY POSITIVE AMERICAN ROLE IS VITAL FOR ACHIEVING PROGRESS IN THE INTEREST OF WORLD PEACE AS WELL AS THE INTEREST OF OUR REGION. WITH THIS IN MIND, I HASTEN TO ADD THAT WE EXPECT THE UNITED STATES TO SPARE NO EFFORT IN THE QUEST FOR A JUST AND DURABLE PEACE settlement. I AM CERTAIN THAT YOU REALIZE THE IMPORTANCE OF MAKING A SIGNIFICANT BREAKTHROUGH IN THE COMING FEW MONTHS WITH RESPECT TO THE ISSUE OF THE PALESTINIAN PEOPLE. THERE HAVE BEEN SOME ENCOUR, GING SIGNS RECENTLY IN THIS CONNECTION AND I HOPE THIS TREND WILL CONTINUE, FOR IT WOULD DEFINITELY STIMULATE THE PROCESS OF PEACE. THE RENEWED ASSURANCE WHICH YOUR LETTER SPELLED OUT WITH REGARDS TO YOUR GOVERNMENT'S DETERNINATION NOT TO ALLOW THE SLACKENING OF YOUR EFFORTS TOWARD PEACE TS WELL RECE,VED AN- APPRECIATED. I WAS PLEASED ALSO TO RECEIVE THE INFORMATION AMBASSADOR EILTS -ONVEYED TO ME UPON HIS RETURN TO CAIRO RELATIVE TO THE AMERICAN POSITION. AS TO. THE BILATERAL RELATIONS BETWEEN OUR Twn PEOPLES AND COUNTRIES, I AM PLEASED TO NOTE THAT THEY ARE DEVELOPING IN THE MANNER WE ENVISAGE AND ALONG THE LINES WE LAID DOWN TOGETHER. I HAVE NO DOUBT THAT THEY WILL CONTINUE TO DEVELOP FURTHER IN THE MONTHS TO COME. YOU MAY REST ASSURED THAT WE. ON OUR PART, REMAIN MOST WILLING AND READY TO DO ALL THAT WE CAN TO ENHANCE OUR MUTUAL COOPERATION. IN CONCLUSION, I WOULD LIKE YOU TO KNOW THAT WE WENT BACK HOME WITH THE BEST MEMORIES OF THE AMERICAN PEOPLE AND THEIR WARMTH. WHEREVER WE WENT, WE WERE SURROUNDED BY FRIENDLY AND HOSPITABLE FORD a PEOPLE. PLEASE CONVEY TO EVERYONE WE MET DURING OUR STAY AND IN PARTICULAR MRS' FORD OUR HEARTFFLT SEPRET GERALD NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY 200-0 DEPARTMENT OF STATE Department of State UNITED STATES OF TELEGRAM SECRET PAGE 03 CAIRO 00371 121352Z GRATITUDE AND SINCERE THANKS. SINCERELY MOHAMMED ANWAR EL SADAT UNQUOTE 3. ORIGINAL SIGNED COPY WILL BE POUCHED' EILTS 200-0 200-0 FORD LIBRARY & OERALD SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET/NODIS, (CLASSIFICATION) 4A S/S# 7601260 NODIS Date JAN 28 1976 DEPARTMENT OF STATE EXECUTIVE SECRETARIAT TRANSMITTAL FORM FOR: Mr. Brent Scowcroft National Security Council The White House REFERENCE: Attached letter TO: President Ford FROM: President Sadat DATE: Jan 11, 1976 SUBJECT: Sadat visit to the US WHITE HOUSE REFERRAL DATED: NSC# (if any) THE ATTACHED ITEM WAS SENT DIRECTLY X TO THE DEPARTMENT OF STATE ACTION TAKEN: A draft reply is attached. A draft reply will be forwarded. A translation is attached. An information copy of a direct reply is attached. X We believe no response is necessary for the reason cited below. Other REMARKS: Attached is the signed original letter from President Sadat to President Ford which was transmitted tele- graphically by Cairo 371, January 11, 1976, SECRET/ NODIS/ No response is required in that Sadat's letter is in response to President Ford's letter of December 9, 1975. R.L FeR Springsteen Secretary SECRET/NODIS (CLASSIFICATION) GERALD Dear Mr. President, I was very pleased to receive your kind letter of December 9, 1975. May I seize this opportunity to reit- erate how much Mrs. Sadat and I have enjoyed our visit to your great and hospitable country? As I have mentioned to you, our stay was extremely fruitful and rewarding. Above all, it was an opportunity for us to meet again with you and your wonderful family in an atmosphere of genuine friendship and understanding. I have always found you a statesman of vision and compassion. Your concern for peace and cooperation among nations is most genuin and reassuring. Under your wise and enlightened leadership, the United States is highly qualified to play the constructive and positive role which is commensurate with its awesome global responsibilities. The Middle East problem is a good case in point, where a consistently positive American (2) role is vital for achieving progress in the interest of World peace as well as the interest of our region. With this in mind, I hasten to add that we expect the United States to spare no effort in the quest for a just and durable peace settlement. I am certain that you realize the importance of making a significant breakthrough in the coming few months with respect to the issue of the Palestinian people. There have been some encouraging signs recently in this connection and I hope this trend will continue, for it would definitely stimulate the process of peace. The renewed assurance which your letter spelled out with regards to your Government's determination not to allow the slacke- ning of your efforts toward peace is well received and appreciated. I was pleased also to receive the infor- mation Ambassador Eilts conveyed to me upon his return to Cairo relative to the American position. As to the bilateral relations between our two peoples and countries, I am pleased to note that they DERALD R FORD (3) are developing in the manner we envisage and along the lines we laid down together. I have no doubt that they will continue to develop further in the months to come. You may rest assured that we, on our part, remain mpst willing and ready to do all what we can to enhance our mutual cooper- ation. In conclusion, I would like you to know that we went back home with the best memories of the American people and their warmth. Wherever we went, we were surrounded by friendly and hospitable people. Please convey to everyone we met during our stay and in particular Mrs Ford our heart- felt gratitude and sincere thanks. A Ladent Sincerely Mohammed Anwar El Sadat. His Excellency Gerald Ford President of the United State Washington. 4c DOC RECD LOG NBR INITIAL ACTION O NSC CORRESPONDENCE PROFILE MO DA MO DA HR / 28 1 29 10 7600578 CIRCLE Oakley AS APPROPRIATE REFERENCE: TO: PRES FROM: KISSINGER, H S/S 7601260 UNCLAS LOG IN/OUT KISSINGER COLBY, W OTHER LOU NO FORN NODIS SOURCE/CLASS/DESCRIPTION SCOWCROFT SCHLESINGER, J C EYES ONLY EXDIS DAVIS ST EX SEC S CODEWORD TS SENSITIVE SUBJECT: Ock the to Pres fm sadat re thanking Pres for hospitality during recent visit 4 expressing expectation for INTERNAL continued ROUTING AND DISTRIBUTION US effort he middle Eastwar REC ACTION REQUIRED ACTION INFO. CY ADVANCE CYS TO HAK/SCOWCROFT FOR MEMO FOR HAK ( ) MEMO FOR PRES ( ) STAFF SECRETARY REPLY FOR ( ) FAR EAST APPROPRIATE ACTION ( ) DISTRIBUTION/INITIAL ACTION ASGMT SUB-SAHARAN AFRICA MID EAST / NO. AFRICA / so. ASIA * MEMO TO ( ) RECOMMENDATIONS ( ) EUROPE / CANADA JOINT MEMO ( ) LATIN AMERICA REFER TO FOR: ( ) UNITED NATIONS ANY ACTION NECESSARY? ( ) ECONOMIC CONCURRENCE bw new ( * ) SCIENTIFIC PROGRAM ANALYSIS DUE DATE: (2-5) NSC PLANNING COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS) CONGRESSIONAL OCEANS POLICY INTELLIGENCE TYPE: HS DATE FROM TO S SUBSEQUENT ACTION REQUIRED (OR TAKEN): CY TO 1/29 Nichus NSC/S Concer in NRN. Rosumary SUBSEQUENT ROUTING/ACTIONS FORD 07/839 DISPATCH ,IAN MICROFILM & FILE ROMTS: CY RQMTS: SEE ABOVE PLUS: NSC/S DISP INSTR NOTIFY & DATE BY M/F 1976 BY GAD SPECIAL DISPOSITION: CRT ID: SA SF CROSS REF W/ OPEN HP NS SUSPENSE CY ATTACHED: No FOLDER: CLOSE WH EP PA DY ( NSC 75-22 ) 575-600 OF STATE left Department of State OF AMERICA UNITED TELEGRAM SECRET 0603 PAGE 01 STATE 152938 60 ORIGIN SS-25 INFO OCT-01 ISO-00 SSO-00 NSCE-00 /026 R DRAFTED BY NSC:RNIEHUSS:CEK APPROVED BY P - MR HABIB NEA - MR DUBS NSC a MR. HOUGHTON (PHONE) S/S -O:LRMACFARLANE 003668 0 202355Z JUN 76 FM SECSTATE WASHDC TO AMEMBASSY CAIRO IMMEDIATE SECRE STATE 152938 EXDIS E.O. 11652: GDS TAGS: PFOR, US, EG SUBJECT: PRESIDENTIAL MESSAGE TO PRESIDENT SADAT REF: SECTO 17005 (CLEARANCE ON TEXT) 1. PLEASE CONVEY THE FOLLOWING MESSAGE FROM PRESIDENT FORD TO PRESIDENT SADAT: 2. BEGIN TEXT: DEAR MR. PRESIDENT: I WANT TO EXPRESS PERSONALLY TO YOU MY DEEP APPRECIATION FOR THE EFFECTIVE AND TIMELY ASSIS- TANCE PROVIDED BY YOU AND YOUR GOVERNMENT FOR OUR SUCCESSFUL EFFORT TO BRING A SUBSTANTIAL NUMBER OF AMERICAN AND OTHER FOREIGN NATIONALS IN BEIRUT TO SAFETY. ENSURING THE WELL-BEING OF OUR CITIZENS WAS A MATTER OF MAJOR IMPORTANCE TO US, AND IT COULD NOT HAVE BEEN AC- COMPLISHED WITHOUT THE FACILITATIVE CONTACTS UNDERTAKEN BY THE EGYPTIAN GOVERNMENT. THIS OF COURSE WAS A PARTI- CULARLY TRAGIC TIME FOR US, AND THE SYMPATHY AND COOPERA- TION OF FRIENDS SUCH AS YOURSELF WAS THEREFORE ALL THE MORE FORD & 3/3/04 SECRET GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY FORM OF STATE * OF I AMERICA UNITED Department of State TELEGRAM SECRET PAGE 02 STATE 152938 APPRECIATED. I LOOK FORWARD TO FURTHER COOPERATIVE EFFORTS BY EGYPT AND THE UNITED STATES TOWARD RESTORING PEACE AND STABILITY, NOT ONLY TO LEBANON BUT TO THE MIDDLE EAST AS A WHOLE. WARM PERSONAL REGARDS, GERALD R. FORD, ROBINSON BERALO A FORD SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY form 6 OF STATE Department of State UNITED STATES becain OF AMERICA TELEGRAN SECRET N00968 S PAGE 01 STATE 180857 TOSEC 190002 61 ORIGIN NOOS-00 INFO OCT-01 ISO-00 /001 R DRAFTED BY P:PCHABIB:JNP APPROVED BY P:PCHABIB NEA:ALATHERTON, JR. S/S = MR. BRIDGES NSC: BSCOWCROFT Copy 11 of 15 copies 095735 0 2122577 JUL 76 ZFF6 FM SECSTATE WASHDC TO AMEMBASSY CAIRO NIACT IMMEDIATE INFO USDEL SECRETARY IMMEDIATE SECRET STATE 180857 TOSEC 190002 S NODIS FOR THE AMBASSADOR E.O. 11652: GDS TAGS: PFOR, AEMR, US, LE 31 SUBJECT: BEIRUT EVACUATION 1. PLEASE PASS IMMEDIATELY THE FOLLOWING MESSAGE FROM THE PRESIDENT TO PRESIDENT SADAT : QUOTE:AS YOU HAVE BEEN INFORMED, WE HAVE BEEN SEEKING TO EVACUATE AMERICAN CITIZENS FROM BEIRUT. I APPRECIATE THE HELP WHICH YOU HAVE PROVIDED IN THIS REGARD. AT NOON ON JULY 21 OUR EMBASSY IN BEIRUT INFORMED THE $ PLO REPRESENTATIVE THAT WE WISHED TO PROCEED in PESCHEDULE THE ROAD CONVOY WHICH HAD BEEN PREVIOUSLY ARRANGED AND Fono LIBRARY ASKED FOR CONFIRMATION THAT THE CONVOY COULD TRAVEL TO DAMASCUS ON JULY 24. LATER THAT DAY THE PLO REPRESENTA- w TIVE REPLIED THAT SATURDAY WAS NOT A GOOD DAY BECAUSE OF DERALD THE GENERALLY UNSTABLE SECURITY SITUATION IN BEINUT AND SECRET 3/3/04 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRET OF STATE Department of State UNITED STATES OF AMERICA TELEGRAM SECRET PAGE 02 STATE 189857 TOSEC 190002 S ELSEWHERE. IN DISCUSSING THE PARTICULARS OF THE SECURITY SITUATION THE PLO REPRESENTATIVE CITED SUCH MATTERS AS PRESIDENT ASSAD'S RECENT SPEECH WHICH HE CALLED UNHELPFUL, THE FAILURE OF THE TRUCE AT TEL ZATAAR AND THE UNCERTAINITY SURROUNDING THE PLO DELEGATION WHICH HAS DEPARTED FOR DAMASCUS FOR DISCUSSIONS WITH THE SYRIANS. YOU WILL REALIZE THAT THIS MESSAGE RESULTS IN AMERICAN CITIZENS BEING HELD AS HOSTAGE TO THE POLITICAL SITUATION IN LEBANON. AS YOU KNOW THIS WOULD BE AN IMPOSSIBLE SITUATION. I THEREFORE ASK YOUR HELP FOR OUR GETTING AMERICAN CITIZENS OUT OF BEIRUT BY ANY MEANS AVAILABLE, INCLUDING BY LAND OR BY SEA, AS WAS DONE PREVIOUSLY. IN ORDER TO PREVENT A MAJOR CALAMITY FOR ALL WE ARE TRYING TO ACHIEVE IN THE MIDDLE EAST, I WOULD BE GRATEFUL IF YOU WOULD GET IN TOUCH WITH THE PLO LEADERSHIP WITHOUT DELAY AND EXPRESS TO THEM IN THE STRONGEST TERMS THE NEED TO FACILITATE THE EVACUATION OF OUR CITIZENS S FROM BEIRUT. UNQUOTE 2. FYI. WE WANT THIS MESSAGE TO GET TO THE PLO FROM THE HIGHEST LEVELS OF EGYPTIAN GOVERNMENT AND THEREFORE ARE NOT INSTRUCTING SEELYE TO CONVEY IT TO THE EGYPTIAN AMBASSADOR IN BEIRUT, END FYI. ROBINSON N S GEGRET FORD LIBRARY & OERALO NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETA 7 Fdil Wit OF STATE UNITED STATES OF Department of State TELEGRAM SECRET N00167 PAGE 21 CAIRO 09945 222146Z COPY 15 OF 15 COPIES. 60 ACTION NODS-00 INFO OCT-01 ISO-00 /001 W 110964 2 222115Z JUL 76 FM AMEMBASSY CAIRO TO SECSTATE NASHDC FLASH 5487 SECRET CAIRO 9945 NODIS DEPT PASS SECRETARY FROM AMGASSADOR: E.O. 11652: GOS TAGS: FFOR AEMR us LE SURJ: LETTER FROM PRESIDENT SADAT TO PRESIDENT FORD RE BEIRUT EVACUATION REF: (A) STATE 181222 (B) CAIRO 9876 (C) CAIRO 9892 1. AT 2300 LOCAL FAHMY'S CHEF DE CABINET, USAMA AL-BAZ. CAME BY THE RESIDENCE TO DELIVER PRESIDENT SADATIS REPLY TO PRESIDENT FORD'S LETTER ON THE BEIRUT EVACUATION (REF A). TEXT OF PRESIDENT SADAT'S LETTER, DATED JULY 22, FOLLOWS: The 2, QUOTE DEAR MR. PRESIDENT, I RECEIVED YOUR LETTER, DATED JULY 22, IN WHICH YOU INFORMED MF OF THE ,WAY THE PLO REPRESENTATIVE REACTED TO YOUR EMBASSY'S REQUEST IN CONNECTION WITH THE EVACUATION OF AMERICAN CITIZENS FROM HEIRUT. AS YOU WELL KNOW, I CONSIDER THIS SUBJECT 4 MATTER WHICH DESERVES ATTENTION, FOR I AM QUITE AWARE OF ITS SENSITIVE NATURE. YOUR INTEREST IN PURSUING IT IN FULL DETAIL IS MATCHED BY MY EARNEST DESIRE TO SEE IT HANDLED IN A POSITIVE AND CONSTRUCTIVE MANNER. FORD & I WANT YOU TO KNOW THAT UPON RECEIVING YOU LETTER, I SECRET GERALD LIBRARY Cala 3/3/04 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY OF STATE of UNITED OF Department of State SECRET TELEGRA STATES PAGE 02 CAIRO 09945 222145Z BENT AN URGENT MESSAGE TO THE PLO LEADERS URGING THEM IN THE MOST UNEQUIVOCAL TERMS TO RESPOND TO YOUR REQUEST FAVORABLY. I BELIEVE THAT THEY WILL BE COOPERATIVE WITH YOUR EMBASSY STAFF AS THEY HAVE BEEN IN SIMILAR CASES IN THE PAST. ALTHOUGH I PREFER TO PESERVE JUDGMENT ON THE MATTER UNTIL I RECEIVE THE NECESSARY CLARIFICATIONS, MY INITIAL INCLINA- TION IS TO DISMISS THE POSSIBILITY THAT THE PALESTINIANS ARE HOLDING YOUR NATIONALS AS HOSTAGES FOR POLITICAL PURPOSES. THEY HAVE NOT DONE so IN THE PAST AND THERE IS NO REASON WHY THEY SHOULD CHANGE THEIR ATTITUDE NOW. YOU NIGHT AGREE WITH ME THAT THEY HAVE HANDLED THIS SUBJECT WITH COMPASSION, UNDER- STANDING AND A SENSE OF RESPONSIBILITY, AT ANY RATE, YOU MAY REST ASSURED THAT MY MESSAGE TO ARAFAT AND HIS COLLEAGUES WAS VERY CLEAR AND I HAVE EVERY REASON TC: BELIEVE THAT IT WILL BE FRUITFUL. I SENT THAT MESSAGE URGENTLY, IN THE SAME SPIRIT THAT PROMPTED YOU TO WRITE TO ME ON THE SUBJECT. I APPRECTATE YOUR RENEWED PLEDGE TO WORK WITH ME TOWARDS THE ESTABLISHMENT OF A JUST AND LASTING PEACE IN THE MIDDLE EAST. NARM PERSONAL REGARDS. MOHAMMED ANWAR EL SADAT UNQUOTE EILTS OC/T NOTE: THIS TEL HAS NOT BEEN RELAYED TO SECRETARY. FORD a GERALD LIBRARY SECRET 8 O,th STATE WH * EXE™ Department of State AMERICA ORLINO TELEGRAM STATES OF SECRE 4505 PAGE 01 STATE 185262 11 ORIGIN SS-23 INFO OCT-01 ISO-00 SSO-00 NSCE-00 CCO-00 /026 R DRAFTED BY NEA/BWG:MDRAPER:JR APPROVED BY THE SECRETARY NEAIALATHERTON P:PHABIB NSC:ROAKLEY S/S-0: MTANNER was 027774 0 270740Z JUL 76 ZFF4 FM SECSTATE WASHDC TO AMEMBASSY CAIRO NIACT IMMEDIATE S EGRE / STATE 185262 EXDIS E.O. 11652: GDS EXEM EXPIN TAGS: PFOR, US, EG SUBJECT: PRESIDENTIAL MESSAGE TO PRESIDENT SADAT 1. PLEASE CONVEY THE FOLLOWING MESSAGE FROM PRESIDENT FORD TO PRESIDENT SADAT. 2, DEAR MR. PRESIDENT: ONCE AGAIN I OWE YOU MY DEEP GRATITUDE FOR THE TIMELY AND POSITIVE EFFORTS MADE BY YOU AND YOUR GOVERNMENT IN SUPPORT OF OUR OBJECTIVE OF BRINGING A SUBSTANTIAL NUMBER OF AMERICAN AND OTHER FOREIGN NATIONALS OUT OF BEIRUT TO SAFETY. AS YOU KNOW, I WAS VERY MUCH CONCERNED NOT ONLY WITH THE WELLBEING OF OUR CITIZENS BUT ALSO WITH THE DIFFICULTIES WE ENCOUNTERED TEMPORARILY WHEN ATTEMPTING TO TAKE THEM OUT BY ROAD CONVOY TO DAMASCUS. FORD A GERALD LIBRARY SEGRET 66 3/3/04 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY to OF STATE * EXEMS Department of State AMERICA TELEGRAM STATES OF SECRE PAGE 02 STATE 185262 WITH A GROWING RECORD OF SUCCESSFUL COOPERATION IN MANY AREAS, I TRUST THAT EGYPT AND THE UNITED STATES WILL CONTINUE TO MOVE FORWARD IN FURTHER EFFORTS TO RESTORE PEACE AND STABILITY TO THE MIDDLE EAST. WARM PERSONAL REGARDS, GERALD R. FORD KISSINGER GERALD ? LIBRARY FORD SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY FORM 9a THE WHITE HOUSE WASHINGTON November 30, 1976 Dear Mr. President: Ambassador Eilts delivered your letter of October 14, 1976, to me. I am pleased that you are giving your personal attention to strengthening the Egyptian economy. As you know from our talks in Salzburg, I share your conviction that this is a matter of the highest priority. The economic health of Egypt is important for the welfare of your people and for the peacemaking process in which Egypt, under your leadership, must continue to play a vital and indispensable role. For our part we intend to continue to provide substantial economic assistance to Egypt and to encourage others to do the same. I understand that you are considering further economic policy measures in consultation with the International Monetary Fund. I recognize the political problems that sometimes accompany even the best economic policy decisions. I also recognize that only you can make the decisions as to what will best serve the interests of your country. My own judgment is that the immediate problems arising from sound albeit difficult economic decisions will be more than compensated by a greater willingness on the part of potential donors to increase assistance to Egypt in its economic recovery. Ambassador Eilts also reported your thoughts of develop- ing an economic partnership with the Federal Republic of Germany. My Government has already been in touch with Foreign Minister Genscher on your idea of a German financial advisor. Ambassador Eilts will report to you in detail about our discussions with our German friends. FORD & GERALD LIBRARY - 2 - He will also inform you about our continuing contacts with other friendly governments to assure priority attention to Egypt's needs. We shall continue these efforts and at the same time look with you for ways to make our own help to Egypt more timely and more effective. Concerning overall United States policy toward the Middle East, you can be certain that I will emphasize to President-Elect Carter our firm conviction that the pursuit of a just and durable peace in the Middle East should have the highest priority. I fully understand the need for further movement toward this objective in the months ahead, and I will certainly work to im- press upon the new Administration the importance of seizing upon the currently favorable climate. Mrs. Ford joins me in extending to you and Mrs. Sadat our warmest personal wishes, recalling with utmost pleasure our memorable meetings with you and your family. Sincerely, Herold R. and His Excellency Anwar El-Sadat President of the Arab Republic of Egypt Cairo 9b NATIONAL SECURITY COUNCIL WASHINGTON, D.C. 20506 6085 December 1, 1976 MEMORANDUM FOR: Mr. C. Arthur Borg Executive Secretary Department of State SUBJECT: Presidential Letter to President Sadat--S/S 7622517 In response to your recommendation of November 9, enclosed is the President's reply to President Sadat's letter of October 14 for transmission to our Embassy in Egypt. Staff m !cretary Jeanne Davis FORD LIBRARY & GERALD NATIONAL SECURITY COUNCIL 6085 December 1, 1976 FOR JEANNE W. DAVIS GERALD R. FORD Jeanne - The President has now signed the reply to President Sadat, so you can send the attached to Mr. Borg. I recommend that you precede it by sending an LDX Hern version over this afternoon. CDX Oakley greed copy onsile to fair to dearatch THE WHITE HOUSE SITUATION ROOM TIME SENT: RECEIVED: 76 DFC I PM 3 42 DEPARTMENT mg OF STATE WHITE HOUSE LDX NR: 558 ROOM PAGES: 3 1976 DEC 1 PM 3 48 DESCRIPTION/COMMENT CTA STATE t DIA/G DIA/H NMCC TREAS ANMCC NPIC NSA ERDA FROM: Jeenne WDaver TO: C. Arthur Borg & GERALD by TIUNAGO NATIONAL SECURITY 9L. Wd 95 1 I 030 RECEIVED THE WHITE HOUSE WASHINGTON December 1, 1976 To Secretariat: Please be sure that Rosemary Niehuss sees this before it is dispatched. Thanks. Jane Jane Pisano and 811/30/76 of MEMORANDUM THE PRESIDENT HAS SEEM 6085 THE WHITE HOUSE SECRET (GDS) WASHINGTON ACTION November 29, 1976 MEMORANDUM FOR: THE PRESIDENT FROM: BRENT SCOWCROFT B SUBJECT: Letter from President Sadat on Egyptian Economy -- Proposed Reply President Sadat has sent you the letter at Tab B asking our assistance in convincing the West Germans to join in an'economic partnership" with Egypt. Sadat's plan is to increase FRG loan assistance and to provide a West German economic advisor to counsel the Egyptians on ways to bolster their economy. Sadat asked Ambassador Eilts to personally hand-carry this letter to Washington when the Ambassador returned here for consultations three weeks ago. As elaborated in his private meeting with Eilts just prior to the latter's return here (Tab C), Sadat continues to press for expanded Western aid as well as assistance from Arab oil producers in order to bolster his sagging economy. He has made clear his appreciation for U.S. economic aid and influence with other Western donors, while expressing dissatisfaction with Arab assistance. Based on recent talks with Chancellor Schmidt, Sadat believes that West Germany could afford to be of greater help to Egypt, beginning with an increase in FRG loan assistance and technical advice from a West German economic advisor. He urges our intercession with Schmidt to encourage the FRG to respond positively to Egypt's request. Secretary Kissinger has asked Ambassador Eilts to assure Sadat that we will speak to Schmidt after December 14, when the newly elected FRG government formally takes office. A West German economic advisor to Egypt has in fact already been named, but we plan to pursue with Schmidt some of the broader commitments Sadat has proposed. Although Egypt has succeeded in getting substantial assistance over the past two years, its economy is still floundering because of bureaucratic ineptness, confusion about how to move from the tight GERALD,R Subject to GDS of E.O. 11652 Automatically downgraded at two-year SECRET (GDS) Intervals and Declassified on 3/3/04 December 31, 1984 SECRET (GDS) - 2 - socialist system established by Nasser to the more liberal system favored by Sadat, and the unwillingness of Sadat's government to take the basic steps recommended by the USG, IMF, Saudi Arabia and others to put the economy on a more solid basis. After more than a year of careful study, the International Monetary Fund recently presented a series of specific proposals to Egypt to restore Egypt's credit-worthiness and thus form the basis for attrac- tive Western donor aid. Sadat believes that some of the proposals would have serious political and social ramifications and is therefore reluctant to adopt them, although he is studying the IMF package. We have strongly encouraged Sadat to accept the IMF recommendations, as have other Egyptian creditors, including Saudi Arabia and Kuwait. The proposed reply for your signature at Tab A would convey to Sadat our continuing determination to assist Egypt with its economic problems, including the encouragement of other potential donors. It again urges Sadat to accept the IMF recommendations as an essential step to longer-term improvement in Egypt's situation and an important factor in the decisions of other donors on whether and how much to assist Egypt. Finally, the proposed reply informs Sadat that, in connection with the transition, we will make every effort to impress upon the new Administration the importance of making further progress in the Middle East negotiations. In messages through Ambassador Eilts and to the Secretary, Sadat has expressed serious concern that the peace-making process not be jeopardized or allowed to drift because of a change in Administration and has indicated his strong hope that you will indicate to President-Elect Carter the importance of further progress. RECOMMENDATION: That you sign the letter of reply to President Sadat at Tab A. (Text cleared by Mr. Smith (Hartmann).) FORD ? SEGRET (GDS) GERALD 9g THE ARAB REPUBLIC OF EGYPT THE PRESIDENT October 14, 1976. Dear Mr. President, In these busy days when you are doubling your effort in the service of your nation and the promotion of world peace, I hasten to convey to you my best wishes for success and fulfill- ment. The contacts we held since you assumed the awesome res- ponsibility of your office and the manner in which you have been directing the course of the United States foreign policy demons- trate beyond any doubt your determination to work for the improve- ment of the quality of life everywhere. I hope that you continue to render such invaluable service to your people and the world at large. As you well know, Mr. President, strengthening the Egyptian economy is a matter of great importance and top priority to me. I am quite confident that we can surge ahead and surmount all the difficulties and hardships we are confronted with at the present time. Such difficulties are the result of the cumilative impact of factors you are familiar with. GERALD LIBRARY THE ARAB REPUBLIC OF EGYPT THE PRESIDENT (2) We are determined to spare no effort to remedy the situa- tion and put our economy in a state of sound equilibrium. In this respect, we realize that the responsibility is ours and we are more than willing to shoulder it. We also welcome the cooperation of those friends who share with us our vision of a world of pros- perity and happiness. I am in close touch with my fellow Arab leaders and other friendly heads of states, among whom you rank highly. We also solicit the advice and expertise of international banking and finance institutions. As you recall, we have reached an understanding with respect to a consortium of Western nations to help us overcome the problem of liquidity. with your help, I have been urging the Governments of Western Europe to move forward in this direction promptly enough to meet the challenge ahead. In this connection, I talked with Chancellor Schmidt during my recent visit to his country about selecting an economic FORD & GERALD THE ARAB REPUBLIC OF EGYPT THE PRESIDENT (3) expert to be loaned to the Egyptian Government as an adviser on economic affairs. In addition, he promised me, in view of our urgent need, to deposit a sizeable amount up to the year 1980 in our National Bank as a measure aimed at bols- tering our economy. It was clear to me from our conversation that it would be much easier for the Chancellor to take these steps after the elections, which is only understandable. Hence, I heard from him lately on the appointment of the economic adviser and I expect to hear soon on the promised dep- osit. It would be most useful, President Ford, if you send him a special message recommending taking such a step as soon as possible. I am sure he values your opinion highly. If the deposit is made in the immediate future, it could make a tangible difference and encourage us to concentrate on dealing with the structural aspects of our economic problems. This technique has been tested successfully in such European count- ries as Itqly. FORD & Considering the urgency of this matter, I am asking Ambassador Eilts to deliver this message personally to you. I GERALD THE ARAB REPUBLIC OF EGYPT THE PRESIDENT (4) have no doubt that you will accord it your direct attention and give the necessary directives to our friend, Secretary Kissinger, to contact Chancellor Schmidt and his assistants on the subject. I would be grateful if you keep me informed of the outcome of your contacts with Bonn. I hope I did not encroach on your precious time in these demanding days. Please convey our best wishes to Mrs. Ford. Sincerely Mohammed Anwar El - Sadat His Excellency Gerald Ford President of the United States Washington. FORD & GERALD SECRET Copy 1 of 5 DEPARTMENT OF STATE Memorandum of Conversation EXDIS DATE: Thursday, October 14, 1976 Place: Barrages SUBJECT: PARTICIPANTS: Anwar al-Sadat, President of the Arab Republic of Egypt Hermann Frederick Eilts, Ambassador to the Arab Republic of Egypt After giving me his letter to President Ford and asking me to read it, President Sadat said he wished to explain what is behind the letter. His main concern, he emphasized, is the Egyptian economy. American aid has been "wonderful" and he was most appreciative. As far as the Arabs are concerned, when he asked for GODE, Saudi Arabia, Kuwait, the Emirates and Qatar finally approved the paltry sum of $2 billion over five years. The President said he is pre- paring a letter to the Arab heads of state contrasting the $1 billion he gets annually from the United States with the $2 billion which he is to receive over five years from the four Arab nation states, which have an income of $50 billion a year. The Arabs, Sadat remarked ruefully, like to "stay away from their pockets". They must understand, however, that the "blood of my soldiers in the October, 1973 war" was shed for them as well as Egypt. The President said he had long pondered what the alternatives might be. He could not ask us for more, since we have already been most generous. He had then thought of the FRG. Both the FRG and Saudi Arabia, he observed, are wealthy. When he had met with Chancellor Schmidt in Bonn, they had talked for three hours. It was the first time he had met the Chancellor, who had been well prepared for the meeting by Secretary Kissinger. In a nice gesture, Schmidt had the night before Sadat's arrival raised the level of FRG assistance to Egypt from 300 million DM to 500 million. Sadat gave Secretary Kissinger credit for this FRG action. Additionally, according to Sadat, Schmidt had "promised" that after the German elections, he would "think of putting some DECLASSIFIED NEA/EGY: Ambassador Eilts:pm E.O. 12958, SEC. 3.5 (Drafting Office and Officer) STATE DEPT, GUIDELINES state Review 9/16/03 BY Galy FORM DS-1254 SECRET , NARA. DATE 3/3/04 2 65 GDS GERALD R. FORD TIBRARY SECRET - 2 - of his dollars in a bank in Egypt". Such an action would help Egypt's acute liquidity problem. The President re- peatedly emphasized that he was not asking the FRG for grants, but for loan assistance. Egypt needs an active partner, Sadat continued, to give satisfaction to his Arab colleagues who can thereafter better understand GOE needs. The FRG, as he conceptualized his idea, would be GOE's "partner". It can afford to help Egypt, since it has the skills and technology to assist in rebuilding Egypt. Whatever technology he might need, the FRG could pro- vide. This would be beneficial to both parties. Again, the President emphasized, he was not asking for grants, but for long-term loans and for help in converting short-term loans to long-term loans. In rebuilding Egypt, he wished to concentrate on food pro- duction and industrialization. The five-year plan about to be finalized emphasizes food production, fertilization, cement and sponge iron plants. The FRG can help provide much of this. By 1980, the President opined, GOE's financial situation should be much improved. When he had visited the Suez Canal a few weeks ago, he had been told that income from tolls stood at $1.2 million per day and was still rising. David Rockefeller was coming in a few days to arrange a $250 million GODE guar- antee loan. Another direct $250 million GODE loan would shortly be arranged. With these loans, and some additional small income, he could get through the current calendar year. But there remain the problems of 1977 and of the intervening years between now and 1980. For Egypt's future economic salvation, petroleum production is a must. There is oil under the Gulf of Suez. Alluding to his talk of the previous day with Standard of Indiana Chairman Swearingen, he expressed concern about the Israeli actions in stopping Amoco from drilling on the eastern side of the Gulf. Egypt needs a one million BPD production by 1980. "Your people say it is quite easy, especially on the eastern side." Swearingen had told him of sixteen sites in the eastern area. The oil would be "easy to drill if the Israelis would permit." Time should not be lost. Otherwise his target would not be achieved. It takes two to three years to develop a field. He was asking President Ford and Secretary Kissinger to do their utmost to enable Amoco to drill in the eastern Gulf. He did not want to use force since he had committed SECRET SECRET - 3 - himself in Sinai II not to do so for three years. I told him you were aware of the problem, had already spoken twice about it to Allon and that some progress had been made. He was pleased. Noting that the UNEF mandate is to be renewed on October 24, Sadat asked if I thought it might help pressure the Israelis if he renewed it only for three months. I gave him my personal view that this was hardly likely to be helpful and would be viewed by many as a violation of Sinai II. Sadat accepted my comment and said he would drop this idea. He would renew the UNEF mandate for a year. Reverting to his earlier theme that by 1980 Egypt's economic situation should be improved, he thought this was very feasible. The two phases of Suez Canal expansion which are contemplated should help greatly. The first, which involves dredging now being done by the Japanese, should be completed by 1978. The second, involving widening, should be completed by 1980. In his judgement, Canal tolls would at that time be tripled and go up to about $1 billion per year. It is the next two or three years that will be difficult. He had chosen the FRG as a "partner". Since Saudi Arabia is currently earning between $27 and $28 billion which it cannot spend, the Germans could obtain some funds from Saudi Arabia. He understood that Schmidt had agreed to send two economic advisors to Saudi Arabia. He had, therefore, asked Schmidt also to send a financial advisor to Egypt to assist in vetting the five-year plan and implementing it. Such an individual could help determine priorities between now and 1980. Schmidt, Sadat said, has now agreed. (The German Ambassador knew of no such agreement.) Sadat wished to go beyond this, however, and urge the Germans to be his "partner". What he needs, they can provide from "their pockets or those of Saudi Arabia"-not in grants, but in loans. Iran is also "more than willing to help". Thus, Germany, working with Saudi Arabia and Iran, should be able to assist Egypt in meeting its needs and determining its priorities. Sadat was sure that "we will never differ because we will not hide any- thing" from the German financial advisor. I took the opportunity to remind Sadat that one of the major problems we have encountered in our "hat passing" exercise is the unhappiness of donors-Western, Arab, Japan and Iran-that GOE has not yet accepted the IMF recommendations. SECRET SECRET - 4 - I had to tell him in all frankness that, while we recognize the political problems that acceptance might entail, I thought he would have difficulty getting any responsible Western state to assist if these recommendations are not soon accepted. Sadat responde that total acceptance would create political, social and security problems. Nevertheless, the IMF recommendations can be accepted "step by step". I then mentioned the vast amounts that are re- quired for the Egyptian subsidy program. Sadat agreed, but said basic consumables must be subsidized. He then observed that perhaps he could "compensate" the necessary subsidy payments from defense expenditures. Defense now costs GOE LE 1,200,000,000 per year. He could perhaps take LE 400 million from this "in two years". Asked what Gamasy's reaction to this might be, Sadat acknowledged it would be bad. But Gamasy, he argued, would not have to spend one cent for the military. GOE will be asking the Emirates to pay all equipment costs for the military. When I asked Sadat for specific details of what he had in mind for the German "partnership" concept, he was vague. He had obviously not thought out these aspects. Nor had he yet discussed it with the West German Ambassador in Cairo. The idea had come to him only a few days ago. He did not want to do so until he knew our reaction and whether we would be willing to commend it to the West Germans. He felt that the subject was sufficiently important to him that I should go back and present it. Throughout his presentation, Sadat kept asking "do you get the picture". He was concerned that he might not be pre- senting it as well as he might and attributed this to the fact that he was fasting. SECRET 7606085 92 DEPARTMENT OF STATE 7622517 Washington, D.C. 20520 November 9, 1976 SECRET EXDIS MEMORANDUM FOR MR. BRENT SCOWCROFT THE WHITE HOUSE Subject: Letter to President Ford from President Sadat of Egypt President Sadat asked Ambassador Eilts October 14 to hand carry to Washington the enclosed letter to President Ford. In his letter Sadat proposes obtain- ing on loan an economic expert from the Federal Republic of Germany and accepting Chancellor Schmidt's offer of a sizeable deposit until 1980, apparently of U.S. dollars, in the Egyptian National Bank. Sadat asks President Ford to send the Chancellor a special message recommending the FRG assist Egypt in this manner. There is also enclosed a memorandum of conversa- tion drafted by Eilts after his October 14 meeting with Sadat at which he received Sadat's letter for the President. A suggested reply from President Ford to Sadat is attached. V. C. Arthur Borg Executive Secretary Attachments: 1. Suggested Reply to Sadat 2. Sadat-Ford letter, October 14, 1976 3. Eilts' Memorandum of Conversation with Sadat October 14, 1976 SECRET GDS Ha 3/3/04 6085 Re-do mate NATIONAL SECURITY COUNCIL November 15, 1976 FOR GENERAL SCOWCROFT Brent, Attached is the package for the President seeking his signature on a reply to President Sadat on Egyptian economic problems. At John Methany's request, we added an additional paragraph on page 2 of the proposed Presidential reply concerning efforts to impress upon the new Administration the need for continued progress in the Middle East negotiations. This was done in light of the most recent message to the Secretary from Sadat (attached behind the State memo and draft reply) in which Sadat expressed the strong hope that the President would make this point to President Elect Carter. Bob DW Oakley PS. I have checked this at e FORD informally with Roy Atherton He agree it is a Leful add has Twd to Connors mt of 11/29 1100 MEMORANDUM 6085 9k NATIONAL SECURITY COUNCIL Tabs SECRET (GDS) ACTION I&A November 11, 1976 retyped MEMORANDUM FOR BRENT SCOWCROFT FROM: ROBERT OAKLEY TBO ROBERT HORMATS ozy SUBJECT: Letter to the President from President Sadat on Egyptian Economy State (attached) has forwarded the letter from President Sadat which was hand-carried to Washington by Ambassador Eilts last month, along with a proposed reply, reflecting the efforts we have already made to encourage the FRG to be helpful to Egypt and our position that Egypt should accept the IMF proposals for reform of the Egyptian economy. Attached at Tab I is a self-explanatory package which you could send to the President proposing a letter of reply to President Sadat. The text of the reply has been coordinated with Mr. Smith (for Mr. Hartmann). NEA informs us that the Secretary did review the State package and proposed reply and approved its transmittal to you. [FYI: As of this date, to our knowledge there has been no message from Sadat to the President after the elections. RECOMMENDATION: That you forward the package at Tab I to the President. Denis Clift concurs. on APPROVE AS AMENDED SECRET (GDS) GERALD ? AMOUNT FORD bh 3/3/04 ql 6085 Dear Mr. President: Ambassador Eilts delivered your letter of October 14, 1976, to me. I am pleased that you are giving your personal attention to strengthening the Egyptian economy. As you know from our talks in Salzburg, I share your conviction that this is a matter of the highest priority. The economic health of Egypt is important for the welfare of your people and for the peacemaking process in which Egypt, under your leadership, must continue to play a vital and indispensable role. For our part we intend to continue to provide substantial economic assistance to Egypt and to encourage others to do the same. I understand that you are considering further economic policy measures in consultation with the International Monetary Fund. I recognize the political problems that sometimes accompany even the best economic policy decisions. I also recognize that only you can make the decisions as to what will best serve the interests of your country. My own judgment is that the immediate problems arising from sound albeit difficult economic decisions will be more than compensated by a greater willingness on the part of potential donors to increase assistance to Egypt in its economic recovery. Ambassador Eilts also reported your thoughts of develop- ing an economic partnership with the Federal Republic of Germany. My Government has already been in touch with Foreign Minister Genscher on your idea of a German financial advisor. Ambassador Eilts will report to you in detail about our discussions with our German friends. FORD & GERALD 1844817 - 2 - He will also inform you about our continuing contacts with other friendly governments to assure priority attention to Egypt's needs. We shall continue these efforts and at the same time look with you for ways to make our own help to Egypt more timely and more effective. Concerning overall United States policy toward the Middle East, you can be certain that I will emphasize to President-Elect Carter our firm conviction that the pursuit of a just and durable peace in the Middle East should have the highest priority. I fully understand the need for further movement toward this objective in the months ahead, and I will certainly work to im- press upon the new Administration the importance of seizing upon the currently favorable climate. Mrs. Ford joins me in extending to you and Mrs. Sadat our warmest personal wishes, recalling with utmost pleasure our memorable meetings with you and your family. Sincerely, His Excellency Anwar El-Sadat President of the Arab Republic of Egypt Cairo GERALD LIBRARY Revised:BS:nm:11/17/76 THE WHITE HOUSE WASHINGTON Dear Mr. President: strengthing Ambassador Eilts delivered your letter of October 14, 1976, to me. I am pleased that you are giving your personal attention to rebuilding the Egyptian economy. As you know from your talks in Salzburg, I share your conviction that this is a matter of the highest priority. The economic health of Egypt is important for the welfare of your people and for the peacemaking process in which Egypt, under your leadership, will continue to play a vital and indispensable role. The recently announced reorganization of your Cabinet is especially neteworthy in reflecting the importance you attach to economic matters. For our part we intend to continue to provide substantial economic assistance to Egypt and to encourage others to do the same. & conderstion In this connection, I know from Ambassador Eilts that you are considering further economic policy measures in consultation with the International Monetary Fund. I recognize the political problems that sometimes accompany even the best economic policy decisions. I also recognize that only you can make the decisions as you to. judge what will best serve the interests of your country. My own judgment is that the immediate problems arising from sound economic decisions will be more than compensated for by a greater willingness on the part of potential donors to increase assistance to Egypt in its economic recovery. and by the long-term benefits to the Egyptian people. albeit deficient Ambassador Eilts also reported your thoughts of developing an economic partnership with the Federal Republic of Germany. My Government has already been in touch with Foreign Minister Genscher on your idea of a German financial advisor. Ambassador Eilts will report to you in detail about our discussions with our German friends as we pursue our efforts with them on your behalf. Ambassader Eilts will also be able to inform you about our continuing contacts with other friendly governments to assure priority attention to Egypt's needs. We shall continue these efforts and at the same time look with you for ways to make our own help to Egypt more timely and more effective. ownall Finally, concerning United States policy toward the Middle East, you can be certain that Secretary Kissinge and I will emphasize to President, firm Elect Carter and his designated entative our conviction that the pursuit of a justand durable peace in the Middle East should have very high priority. I fully understand the need for further movement toward this objective in the months ahead, particularly given the greatly improved present prospects for peace in the area I will certainly work to impress upon the new Adminis- tration the importance of seizing upon this favorable the currently situationyand not allowing time to run out, climate. Mrs. Ford joins me in extending to you and Mrs. Sadat our warmest personal wishes, recalling with utmost pleasure our memorable meetings with you and your family. Sincerely, FORD & His Excellency Anwar El-Sadat President of the GERALD Arab Republic of Egypt Cairo 6085 SECRET (GDS) ACTION MEMORANDUM FOR: THE PRESIDENT FROM: BRENT SCOWCROFT SUBJECT: Letter from President Sadat on Egyptian Economy -- Proposed Reply President Sadat has sent you the letter at Tab B asking our assistance in convincing the West Germans to join in an'economic partnership" with Egypt. Sadat's plan is to increase FRG loan assistance and to provide a West German economic advisor to counsel the Egyptians on ways to bolster their economy. Sadat asked Ambassador Eilts to personally hand-carry this letter to Washington when the Ambassador returned here for consultations three weeks ago. As elaborated in his private meeting with Eilts just prior to the latter's return here (Tab C), Sadat continues to press for expanded Western aid as well as assistance from Arab oil producers in order to bolster his sagging economy. He has made clear his appreciation for U.S. economic aid and influence with other Western donors, while expressing dissatisfaction with Arab assistance. Based on recent talks with Chancellor Schmidt, Sadat believes that West Germany could afford to be of greater help to Egypt, beginning with an increase in FRG loan assistance and technical advice from a West German economic advisor. He urges our intercession with Schmidt to encourage the FRG to respond positively to Egypt's request. Secretary Kissinger has asked Ambassador Eilts to assure Sadat that we will speak to Schmidt after December 14, when the newly elected FRG government formally takes office. A West German economic advisor to Egypt has in fact already been named, but we plan to pursue with Schmidt some of the broader commitments Sadat has proposed. Although Egypt has succeeded in getting substantial assistance over the past two years, its economy is still floundering because of bureaucratic ineptness, confusion about how to move from the tight BERALD Subject to GDS of E.O. 11652 Automatically downgraded at two-year SECRET (GDS) Intervals and Declassified on be 3/3/04 December 31, 1984 SECRET (GDS) - 2 - socialist system established by Nasser to the more liberal system favored by Sadat, and the unwillingness of Sadat's government to take the basic steps recommended by the USG, IMF, Saudi Arabia and others to put the economy on a more solid basis. After more than a year of careful study, the International Monetasy Fund recently presented a series of specific proposals to Egypt to restore Egypt's credit-worthiness and thus form the basis for attrac- tive Western donor aid. Sadat believes that some of the proposals would have serious political and social ramifications and is therefore reluctant to ddopt them, although he is studying the IMF package. We have strongly encouraged Sadat to accept the IMF recommendations, as have other Egyptian creditors, including Saudi Arabia and Kuwait. The proposed reply for your signature at Tab A would convey to Sadat our continuing determination to assist Egypt with its economic problems, including the encouragement of other potential donors. It again urges Sadat to accept the IMF recommendations as an essential step to longer-term improvement in Egypt's situation and an important factor in the decisions of other donors on whether and how much to assist Egypt. Finally, the proposed reply informs Sadat that, in connection with the transition, we will make every effort to impress upon the new Administration the importance of making further progress in the Middle East negotiations. In messages through Ambassador Eilts and to the Secretary, Sadat has expressed serious concern that the peace-making process not be jeopardized or allowed to drift because of a change in Administration and has indicated his strong hope that you will indicate to President-Elect Carter the importance of further progress. RECOMMENDATION: That you sign the letter of reply to President Sadat at Tab A. (Text cleared by Mr. Smith (Hartmann).) ORD SECRET (GDS) MBRARY 90 MEMORANDUM THE WHITE HOUSE 6085 WASHINGTON SECRET (GDS) ACTION Sadat's isto to MEMORANDUM FOR: THE PRESIDENT FROM: BRENT SCOWCROFT SUBJECT: Letter from President Sadat on Egyptian Economy--Proposed Reply assistance in our President Sadat has sent you,vie Ambassader Filts the letter at Tab B urging the U.S. U. to de the West Germans to join in an "economic partnership with Egypt. which would increase FRG loan assistance and provide a West German economic advisor to counsel the Egyptians on ways to bolster their economy. Sadat asked Ambassador Eilts to personally hand-carry this letter to Washington when the Ambassador returned here for consultations three weeks ago. As elaborated in Sadat's his private meeting with Eilts just prior to the lather's return here (Tab C), Sadat continues to press for expanded asshn Western aid as well as assistance from Arab oil producers to bolster his sagging economy. He has made clear his appreciation for U.S. economic aid and influence with other Western donors, while expressing dissatisfaction with Arab assistance. Based on recent talks with Chancellor Schmidt, Sadat has behave decided that West Germany could afford to be of greater help to Egypt, and join as its economic "partner," beginning with an increase in FRG loan assistance and technical advice from a West German economic advisor. He urges our intercession with Schmidt to encourage the FRG to respond positively to Egypt's request. Secretary Kissinger has asked Ambassador Eilts to the assure Sadat that we will speak to Schmidt after December 14, when his new elected FRG government formally takes office. A West German economic advisor to Egypt has already been named, but wel will pursue with Schmidt some of the broader commitments Sadat has proposed. Subject to GDS of E. O. 11652 Automatically downgraded at two-year Intervals and declassified on SECRET (GDS) December 31, 1984. FORD lala 3/3/04 LIBRARY & QUINTO SECRET (GDS) - 2 - Although Egypt has succeeded in getting substantial assistance over the past two years, its economy is still floundering because of bureaucratic ineptness, confusion about how to move from the tight socialist system established by Nasser to the more liberal system favored by Sadat, and the unwillingness of Sadat's government to take the basic steps recommended by the USG, IMF, Saudi Arabia and others to place the economy on a more solid basis. After more than a year of careful study, the International Monetary Fund recently presented a series of specific proposals to Egypt to be undertaken to restore Egypt's credit-worthiness and thus form the basis for attractive Western donor aid. Sadat believes that some of the proposals would have serious political and social ramifications and is therefore reluctant to adopt them, although he is studying the IMF package. We have strongly encouraged Sadat to accept the IMF recommendations, as have others of Egypt creditors, including Saudi Arabia and Kuwait. The proposed reply for your signature at Tab A would Sadat country our continuing determination to assist Egypt with its economic problems, including the encouragement of other potential donors. It congratulates Sadat for the step he recently took in appointing a Deputy Prime Minister for Economic Affairs, thereby centralizing and upgrading authority over that sector. And it again urges Sadat to accept the IMF recommendations the only hope for any longer- term improvement in Egypt's, problems and an important factor in the decisions of other donors on whether and how much to assist Egypt. citmation am excential step to Finally, the proposed reply also reassure Sadat that, in connection with the transition, we will make every effort to impress upon the new Administration the importance of making further progress in the Middle East negotiations. In messages through Ambassador Eilts and to the Secretary, Sadat has expressed serious concern that the peace-making process not be jeopardized or allowed to drift because of the change in Administration and has indicated his strong hope that you will indicate to President-Elect Carter the importance of attached to further progress. RECOMMENDATION: That you sign the letter of reply to President Sadat at Tab A. [Text cleared by Mr. Smith (Hartmann). ] FORD & SECRET (GDS) informs GERALD LIBRARY DOC RECD LOG NUMBER 9p MO DA MO DA HR NSC CORRESPONDENCE PROFILE // 9 11 10 10 7606085 TO: RRES FROM: SECSTATE S/S 7622517 Octhy SCOWCROFT * SECDEF NODIS HYLAND DCI. X REF C. EYES ONL EXDIS STATE EXSEC of DAVIS $ CODEWORD SOURCE/CLASS/DESCRIPTION OTHER TS SENSITIVE SUBJECT Cel lte to Page for has Solatre the loan Jan Economic Copyt Jan Memory to the English INTERNAL ACTION ROUTING Dout AND CONCUR- DISTRIBUTION COOR- as INFO an REC CY adviser ACTION REQUIRED affairs on Conomie RENCE DINATE FOR ADV. CYS S'CROFT/ WGH MEMO FOR SCOWCROFT STAFF SECRETARY MEMO FOR PRES CONGRESSIONAL REPLY FOR ECONOMIC DISTRIBUTION/INITIAL ACTION ASGMT EUR/ CANADA/ OCEANS of + MEMO PROPRIATE ACTION TO FAR EAST/ PRC RECOMMENDATIONS INTELLIGENCE JOINT MEMO LATIN AMERICA REFER TO FOR: MID EAST/ NO. AFRICA X ANY ACTION NECESSARY? FORD NSC PLANNING R CONCURRENCE PROGRAM ANALYSIS DUE DATE: 11-19 SCIENTIFIC COMMENTS: (INCLUDING SPECIAL INSTRUCTIONS 07/830 BRARY SUB-SAH/ AFRICA/ UN LEONARY DATE FROM TO STATUS SUBSEQUENT ACTION REQUIRED (OR TAKEN): DUE CY TO 11/17 Sick Davis 11/12 Scrower X SUBSEQUENT ROUTING/ACTIONS S Redo Pres to Sgn the to Sadat 01/07 15 bakley 11/18 Hormats 18 11/15 a Sconwroft X Pres for decision "/22 Horrofate 11/29 Per P Sgn the to Per Sadat clift 11/30 ALSC/S Pres agd th to Sadnt 12/1 12/1/76 Dalley G Keview Do dispated Oopley Davie "S" 5yD MEMO To BOBY + N DISPATCH NSC/S DISP INSTR Plan Borg RECEiPT S'ADAT 9612'01 LTR NOTIFY << eys of MICROFILM & FILE ROMTS SPECIAL DISPOSITION: DEC 02 1976 BY CRT ID: NS DY SPECIAL INDEXING: OPEN WH SA EP SUSPENSE CY ATTACHED * CLOSE << PA NSC 76-21 U.S. GOVERNMENT PRINTING OFFICE - 599-022 - 1976 599-022 10 NOD DEPARTMENT OF STATE 3 DECISE 02 34 000595 Department of State UNITED STATES OF TELEGRA SECRET N20331 PAGE 01 STATE 294508 S 61 ORIGIN NODS-00 COPY NO. 11 OF 15. INFO OCT-01 ISO-00 1091 R DRAFTED BY - 'EXT RECEIVED FROM WHITE HOUSE (S/S 7624802) APPROVED BY NEA - MR. ATHERTON S/S - DMACK 100099 20050 0 030201Z DEC 76 ZFF4 FM SECSTATE WASHDC TO AMEMBASSY CAIRO IMMEDIATE S ECRET STATE 294508 NODIS FOR AMBASSADOR E.O. 11652: GDS TAGS: PFOR, ECON, EFIN, EG SUBJECT: PRESIDENTIAL LETTER TO SADAT REFERENCE: SADAT/FORD LETTER OF OCTOBER 14 1. PLEASE DELIVER FOLLOWING REPLY TO PRESIDENT SADAT'S LETTER OF OCTOBER 14 ADDRESSED TO PRESIDENT FORD. SIGNED ZODEN ORIGINAL DATED NOVEMBER 30 TO FOLLOW BY POUCH. FORD A 2. BEGIN TEXT: DEAR MR. PRESIDENT: AMBASSADOR EILTS DELIVERED YOUR LETTER OF OCTOBER 14, 1976, TO ME. I AM PLEASED THAT YOU ARE GIVING YOUR PERSONAL ATTENTION TO GERALD LIBRARY STRENGTHENING THE EGYPTIAN ECONOMY. AS YOU KNOW FROM OUR TALKS IN SALZBURG, I SHARE YOUR CONVICTION THAT THIS IS A MATTER OF THE HIGHEST PRIORITY. THE ECONOMIC HEALTH OF EGYPT IS IMPORTANT FOR THE WELFARE OF YOUR PEOPLE AND FOR THE PEACEMAKING PROCESS IN WHICH EGYPT, UNDER YOUR LEADER- SHIP, MUST CONTINUE TO PLAY A VITAL AND INDISPENSABLE ROLE. FOR OUR PART WE INTEND TO CONTINUE TO PROVIDE SUBSTANTIAL ECONOMIC ASSISTANCE TO EGYPT AND TO ENCOURAGE OTHERS TO 00 SECRET lohn 3/3/04 DEPARTMENT OF STATE Department of State UNITED STATES OF TELEGRA SECRET PAGE 02 STATE 294576 THE SAME. S I UNDERSTAND THAT YOU ARE CONSIDERING FURTHER ECONOMIC POLICY MEASURES IN CONSULTATION WITH THE INTERNATIONAL MONETARY FUND. I RECOGNIZE THE POLITICAL PROBLEMS THAT SOMETIMES ACCOMPANY EVEN THE BEST ECONOMIC POLICY DECISIONS. I ALSO RECOGNIZE THAT ONLY YOU CAN MAKE THE DECISIONS AS TO WHAT HILL BEST SERVE THE INTERESTS OF YOUR COUNTRY. MY OwN JUDGMENT IS THAT THE IMMEDIATE PRO- BLEMS ARISING FROM SOUND ALBEIT DIFFICULT ECONOMIC DECISIONS WILL BE MORE THAN COMPENSATED BY A GREATER WILLINGNESS ON THE PART OF POTENTIAL DONORS TO INCREASE ASSISTANCE TO EGYPT IN ITS ECONOMIC RECOVERY. AMBASSADOR EILTS ALSO REPORTED YOUR THOUGHTS OF DEVELOP- ING AN ECONOMIC PARTNERSHIP WITH THE FEDERAL REPUBLIC OF GERMANY. MY GOVERNMENT HAS ALREADY BEEN IN TOUCH WITH FOREIGN MINISTER GENSCHER ON YOUR IDEA OF A GERMAN FINANCIAL ADVISOR. AMBASSADOR EILTS WILL REPORT TO YOU S IN DETAIL ABOUT OUR DISCUSSIONS WITH OUR GERMAN FRIENDS. HE WILL ALSO INFORM YOU ABOUT OUR CONTINUING CONTACTS WITH OTHER FRIENDLY GOVERNMENTS TO ASSURE PRIORITY ATTENTION TO EGYPT'S NEEDS. WE SHALL CONTINUE THESE EFFORTS AND AT THE SAME TIME LOOK WITH YOU FOR WAYS TO MAKE OUR DWN HELP TO EGYPT MORE TIMELY AND MORE EFFECTIVE. CONCERNING OVERALL UNITED STATES POLICY TOWARD THE MIDDLE EAST, YOU CAN BE CERTAIN THAT I WILL EMPHASIZE TO PRESIDENT-ELECT CARTER OUR FIRM CONVICTION THAT THE PUR- SUIT OF A JUST AND DURABLE PEACE IN THE MIDDLE EAST SHOULD HAVE THE HIGHEST PRIORITY. I FULLY UNDERSTAND THE NEED FOR FURTHER MOVEMENT TOWARD THIS OBJECTIVE IN THE MONTHS FORD AREAD, AND I WILL CERTAINLY WORK TO IMPRESS UPON THE NEW R ADMINISTRATION THE IMPORTANCE OF SEIZING UPON THE CUR- RENTLY FAVORABLE CLIMATE. GERALD LIBHARY MRS. FORD JOINS ME IN EXTENDING TO YOU AND MRS. SADAT OUR WARMEST PERSONAL WISHES, RECALLING WITH UTMOST PLEASURE S OUR MENORABLE MEETINGS WITH YOU AND YOUR FAMILY. SINCERELY GERALD R. FORD. END TEXT. ROBINSON SECRET