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Security Information -2- British find certain difficulties with the proposals, particularly with respect to the limitation on the Sudanese on the choice of either independence or unity. The Minister asserted that the Sudanese did not desire dominion status and therefore no reference was made in the proposals to dominion status as a possible choice. While Mr. Farrag hoped that 1t would be possible to reach an understanding with the British, he felt that U.S. pressure on the UK would assist. The Secretary said that the U.S. would try to be as helpful as possible in this, and mentioned that he had dis- cassed this question with Mr. Eden a few days ago who appeared to be favorably inclined. Mr. Farrag then said that while Egypt appreciated U.S. sympathy for a new regime, Egypt hoped that this sympathy could be turned into material support. Egypt was in need of financial. economic and military assistance. He expressed the hope that the U.S. would find it possible to purchase additional cotton from Egypt for stockpiling purposes. He also hoped that military equipment might be made available. He asserted that Egypt had been endeavoring to create a favorable atmosphere for such a program and cited the approval of his government for payment of compensation to the British for those who had lost their lives during the January 26 ricts. The Secretary said that Egyptian action approving com- pensation had been most helpful in creating a favorable a tmosphere. Turning to a possible program of assistance the Secretary said that the U.S. was prepared to discuss this matter with the Egyptians with a view to determining what might be done. He informed the Foreign Minister that export licenses for commercial police equipment had already been approved. Mr. Stabler said that we had gone into the question of cotton purchases and found that at the present moment there was no further need for stockpile purchases. with regard to commercial purchases it appeared that at least for the time being, there was no commercial need for Egyptian long staple varieties. The Ambassador inquired whether it might not be possible to purchase cotton, even if the U.S. did not need it, for the purpose of assisting Egypt fi- nancially. The Secretary then inquired as to the possibilities of Japanese purohase of Egyptian cotton since Japan had considerable sterling balances. Mr. Stabler said that that matter had been looked into and it appeared that a Japanese trade mission was either in Cairo or on its way for the purpose of working out a trade agreement. Mr. Stabler stated his nderstanding that previous negotiations between Egypt and Japan had been made difficult by problems of financing and exchange. DECLASSIFIED E. O. 11652, Sec. and S(D) or (E) Dept. of State letter, 10.36.16 Security Information By NLT- HV NARS Date 11-30-76

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193226021
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Type
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DTO data
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Page context
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    "ocrText": "Security Information\n-2-\nBritish find certain difficulties with the proposals,\nparticularly with respect to the limitation on the Sudanese\non the choice of either independence or unity. The Minister\nasserted that the Sudanese did not desire dominion status\nand therefore no reference was made in the proposals to\ndominion status as a possible choice. While Mr. Farrag hoped\nthat 1t would be possible to reach an understanding with the\nBritish, he felt that U.S. pressure on the UK would assist.\nThe Secretary said that the U.S. would try to be as\nhelpful as possible in this, and mentioned that he had dis-\ncassed this question with Mr. Eden a few days ago who appeared\nto be favorably inclined.\nMr. Farrag then said that while Egypt appreciated U.S.\nsympathy for a new regime, Egypt hoped that this sympathy\ncould be turned into material support. Egypt was in need of\nfinancial. economic and military assistance. He expressed\nthe hope that the U.S. would find it possible to purchase\nadditional cotton from Egypt for stockpiling purposes. He\nalso hoped that military equipment might be made available.\nHe asserted that Egypt had been endeavoring to create a\nfavorable atmosphere for such a program and cited the approval\nof his government for payment of compensation to the British\nfor those who had lost their lives during the January 26 ricts.\nThe Secretary said that Egyptian action approving com-\npensation had been most helpful in creating a favorable\na tmosphere. Turning to a possible program of assistance\nthe Secretary said that the U.S. was prepared to discuss\nthis matter with the Egyptians with a view to determining\nwhat might be done. He informed the Foreign Minister that\nexport licenses for commercial police equipment had already\nbeen approved. Mr. Stabler said that we had gone into the\nquestion of cotton purchases and found that at the present\nmoment there was no further need for stockpile purchases.\nwith regard to commercial purchases it appeared that at least\nfor the time being, there was no commercial need for Egyptian\nlong staple varieties. The Ambassador inquired whether it\nmight not be possible to purchase cotton, even if the U.S.\ndid not need it, for the purpose of assisting Egypt fi-\nnancially. The Secretary then inquired as to the possibilities\nof Japanese purohase of Egyptian cotton since Japan had\nconsiderable sterling balances. Mr. Stabler said that that\nmatter had been looked into and it appeared that a Japanese\ntrade mission was either in Cairo or on its way for the\npurpose of working out a trade agreement. Mr. Stabler stated\nhis nderstanding that previous negotiations between Egypt\nand Japan had been made difficult by problems of financing\nand exchange.\nDECLASSIFIED\nE. O. 11652, Sec. and S(D) or (E)\nDept. of State letter, 10.36.16\nSecurity Information\nBy NLT- HV NARS Date 11-30-76"
}