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OFFICE OR DECLASSITED THE SECRETARY OF STATE Sec. 1932 WASHINGTON State DEB Dept. E.O. 12065, Guidelines, NLT, Date March 4-9-85 U, January 9, 1952 By SECRET SECURITY INF ORMA TION SUMMARY OF TELEGRAMS EGYPT The British Ambassador in Cairo has suggested informally to Ambassador Caffery that the latter might suggest that the United States Government propose to Eden joint recognition of the title "King of the Sudan" with the proviso that the question of sovereignty be re- served for later Sudanese action. Caffery replied that he believed that if we put it up to the Egyptians in that fashion they would slap it down. He be - lieved, however, that if we suggested to the Egyptians recognition of the title on the condition that the Egyptians at the same time agree to some form of plebiscite or referendum that would guarantee to the Sudanese a right to eventual self-determination, the Egyptians would accept. Caffery reports the French and Turkish Ambassadors are of the same opinion. The Embassy reports that, in connection with the strike of Suez Canal workers, the President of the Canal Company is reported as having said yesterday that the situation is extremely serious. The company is now appealing to the Egyptian Government for assistance. INDONESIA Our Embassies in Djakarta and The Hague have reported that The Netherlands government has decided to propose resumption of talks with Indonesia concerning the status of the Union Statute and various problems existing between the two countries. Although the In- - donesian delegation had been in The Netherlands for some time, the talks had not been undertaken because of the desire of the Netherlands government to insist on a prior settlement of a dispute relating to seizure by the Indonesians of a Dutch arms shipment enroute to Netherlands New Guinea. The general purpose of the talks, at least from the Indonesiar point of view, is to amend the Union Statute so as to place the countries on an actual bilateral basis and, if possible, to raise the question of Indonesian sovereignty over Netherlands New Guinea. The latter is strongly opposed both by the Netherlands and by Australia. The Indonesian Prime Minister had asked the US to inform the Dutch that the only alternative to resuming the talks without including the arms seizure question on the agenda would have been unilateral abrogation of the Union Statute by Indonesia. This information was conveyed to the Nether- - lands Government. Upon receipt of news that the talks would be resumed, the Indonesian Foreign Minister expressed the deepest appreciation for US intervention. SECRET SECURITY INEORMATION