Memorandum, State Department Summary of Telegrams

PELESSIFIED OFFICE OF E.O. 12/055, Sec. 3-402 THE SECRETARY OF STATE 1/4 Dept. Guidelines, March 6, 1982 WASHINGTON State By DEB NLT, Date 9-9-85 February 12, 1952 SECRET SECURITY INFORMATION SUMMARY OF TELEGRAMS EGYPT Ambassador Caffery reports from Cairo that he believes the approach to the Anglo-Egyptian question now being considered by the British Foreign Office is wrong and that to begin con- versations on defense proposals without frankly facing the Sudan question is neither practical nor realistic. Caffery states that in a conversation with Amr Pasha, Egyptian Ambassador to the United Kingdom who was recalled some weeks ago, he told Amr that the US stands squarely behind the British in their right to remain in the Canal Zone under existing circumstances and we do not recognize the unilateral Egyptian abrogation of the 1936 Treaty. Amr Pasha is proceeding to London to represent King Farouk at the funeral of King George VI. He hopes to talk with Eden and others in the British Foreign Office and would like also to have conversations with our repre- sentatives in London. Caffery comments that Amr has a sound understanding of the situation and is highly thought of by King Farouk. However, during his conversation with Caffery, Amr insisted that without recognition of the'King of the Sudan"! title it would not be possible to get anywhere with the defense proposals. He also said that the Ala Maher Government will not last very long if no progress is made with the British. INDIA We have informed Ambassador Bowles in New Delhi that we believe there is no chance of submitting to Congress, along with the Mutual Security Program, recommendations for grant aid to India for procurement of commodities such as wheat and cotton. The only basis for going to Congress to obtain commodities would be in an emergency such as starvation arising out of extraordinary natural disasters. Moreover, the Indian rupee budget surplus and reserves do not presently justify local currency assistance for 1953 which would require a special amendment of Point IV legislation or an extension of the ECA Act of 1948. The budget which we have submitted to Congress now calls for economic development aid for India of approximately $70 million. SECRET SECURITY INF ORMATION