Memorandum, State Department Summary of Telegrams

NLT (NavalAide) 281 and OFFICE OF E.O. 12065, Sec. March 3-402 6, THE 1982 SECRETARY WASHINGTON OF DECLASSIFIED STATE State Dept. DLE Guidelines, NLT, Date 9-6-87 November 16, 1951 By TOP SECRET SUMMARY OF TELEGRAMS EGYPT Hassan Youssef, the Chief of the King's Cabinet told Ambassador Caffery Wednesday evening that the King knows about Serageddin's conversations with Caffery (which suggested the possibility of Egypt's acceptance of the Middle East Command proposals if all British "troops" were withdrawn leaving flexibly-interpreted "British technicians" in the Canal Zone in their place) and that the King highly ap- proves. Hassan Youssef observed that Farouk is delighted that Serageddin took the initiative in these conversations and hopes that they will lead to final acceptance by the Egyptian Government of the defense plans, with the usual reservations that the British must do something "satisfactory" on the Sudan issue. British Ambassador Stevenson in Cairo has told Caffery that he believes a change of jovernment in Egypt will be necessary in order to restore the status quo ante in the Canal Zone and that it may take some pressure to achieve this. He says that Farouk still hopes that some formula can be worked out in the framework of the present government which would permit the resumption of negotiations, but the King has taken no action against the extremists. Stevenson is urging his government to coordinate closely with the US Government in studying the tactics which will be neces- sary to push the Egyptians toward a reshuffling of their government. BURMA Our Charge in Rangoon told the Foreign Minister on Wednesday that the US Government has received, with growing concern, reports from reliable sources indicating the develop- ment of a serious threat to the independence of Burma by insurgent groups within the counrty. The Foreign Minister took the occasion to revert to the subject of the Chinese Nationalist troops on Burmese territory and said that captives from among these had guns of the latest American manufacture, which evidenced a link between General Li Mi and the Chinese Nationalist Government in Taipei. He said that we could be most helpful by persuading Taipei to stop helping these troops in Burma and to break all communica - tions with General Li Mi beyond ordering the troops out of Burma. Our T O P SECRET