Memorandum, State Department Summary of Telegrams

NET (Navil Aide) 321 DECLASSTIDA OFFICE OF E.O. 12065, Sec. 3-402 THE SECRETARY OF STATE State By DEB NLT, Date 9-9-85 Dept. Guidelines, March 6, 1982 WASHINGTON January 31, 1952 TOR-SEGRET SECURITY INFORMATION SUMMARY OF TELEGRAMS FRANCE We have informed our Embassy in Paris that, after examining figures relating to the French military budget and defense program, we find it difficult to believe that the expected financial shortfall should entail quite the extreme degree of consequences which the French have set forth. It is our opinion that careful screening of the budget and taking into account US aid to Indochina would reduce the shortfall to a figure of some 200 billion francs or less. We have asked the Embassy's confirmation of our estimate. Our message points out that the French claim that they must reduce their equipment production drastically is particularly hard to believe because an examination of the figures indicates that the shortfall, when applied to force levels, hardly seems to warrant such disproportionate reductions at those levels. EGYPT Ambassador Caffery has commented that the deep seated distrust of the British on the part of the Egyptians makes direct conversation between them difficult. The Egyptians always want to bring the US into discussions, but not the French or the Turks. Caffery agrees with our suggestion that the UK might, in order to open conversation suggest talks on all outstanding differences including both defense and the Sudan. He reiterates that, in his opinion, the Sudan ques - tion can not be excluded. An emissary of the King came to see him again yesterday to insist that without recognition of the Sudan title, talks con- cerning defense proposals would be purely academic. Embassy London reports that the British Foreign Office is still evaluating the new government and situation in Egypt before deter- mining what steps it will take next. It appears to believe that the first priority is to encourage the new government to deal vigorously with the internal security and terrorist problems, while watching carefully for a break which might make conversations possible. A Foreign Office official has indicated that the British are aware of the unpleasant ring which reference to "four power proposals" may have in Egyptian ears. He stressed the difficulties which the Foreign Office has experienced in evolving a new formula for the Sudan. The Governor General of the Sudan states that suggestions made so far would not be understood by the Sudanese and might well lead to violence. The official commented "It is no goqd solving TOP SECRET SECURITY INEORMATION