Memorandum, State Department Summary of Telegrams

Net AIDO) 445 the 12065, Sec. 3-402 OFFICE OF DECLASSIFIED THE SECRETARY OF STATE 1982 WASHINGTON State Dept. DEB ECO. Guidelines, NLT, Date March 9-11-85 6, December 17, 1952 By TOP SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS EGYPT The British Government has accepted our suggestion to hold Anglo-American talks on Egypt. The British, who would like to start the conversations as soon after Christmas as possible, agree that their scope would be: 1) the terms on which the UK Government could agree to withdraw from the Suez Canal Zone; 2) collaboration of the Arab states with the Middle East Defense Or- - ganization; 3) military aid to Egypt as part of a general settlement; and 4) economic aid to Egypt. Foreign Secretary Eden prefers that the discussions occur in London, since the relevant information is all readily available there. Meanwhile, we are considering suggesting to the UK that the southern Sudan question might be settled by an exchange of secret communications at the time the UK-Egypt-Sudan agreement is signed, accepting the UK interpretation that in the exercise of his broad powers the Governor General of the Sudan has special re- sponsibilities for the more primitive southern area. Such an ex- change might, in our view, satisfy both British and Egyptian concern over this matter. We are sure the Foreign Office agrees that the eventual discussions with the Egyptians concerning Suez would be greatly enhanced by prior achievement of agreement on the Sudan issue. IRAN Our Ambassador to London is concerned over in- dications that we might explore a lump sum settle- ment of the Iranian oil compensation issue with Prime Minister Mosadeq either without checking further with the British or in spite of their objections. Ambassador Gifford thinks it would be most unwise in principle for us to discuss with Mosadeq such an approach to the compensation problem unless we at least have British acquies- ence to our doing so. He seriously questions whether the seemingly TOP SECRET SECURITY INFORIATION