Memorandum, State Department Summary of Telegrams

35th OFFICE OF DECLASSIFIED THE SECRETARY OF STATE E.O. 12065, Sec. 3-402 WASHINGTON State Dept. Guidelines, March 6, 1982 By DEB NLT, Date 9/10/85 November 24,1952 SECRET SECURITY INF ORMATION SUMMARY OF TELEGRAMS EGYPT Ambassador Caffery reports a noticeable but not yet alarming deterioration of the internal position of the Naguib regime. The causes are: 1) dissatisfaction of groups adversely affected by the land reform and price control programs; 2) economic distress among the peasants because of Egypt's inability to market its cotton; 3) a growing restlessness and boldness of the WAFD and Moslem Brotherhood groups; 4) Communist exploitation of economic hardship and espousal of "political liberty" and nationalist aims; and 5) lack of organized popular support for the regime despite Naguib's popularity among the masses. This deterioratinn has caused a hardening of the Egyptian position on the Sudan issue and the British Ambassador to Egypt believes that Naguib will be unable to make any major concessions for fear of antagonizing additional elements of the population, In view of the crucial importance. of reaching a settlement on the Sudan question, the British Ambassador is recommending that the British Government concede a sufficient amount to meet the Egyptian viewpoint. Meanwhile, a member of the Egyptian Military High Committee in discussing the internal aituation with Ambassador Caffery noted the need for Egypt to secure a substantial amount of new weapons in order to be sure of the continued loyalty of the Armed Forces officers at least. KOREA Since the introduction of the resolution on Korea by the Indian Delegation on November 17, the twenty-one sponsors of the basic Korean resolution introduced by Secretary Acheson on October 24 have met almost daily to discuss how best to proceed. The US Delegation has emphasized that, while not opposed to the Indian effort, the Indian resolution must be clarified and amended in several respects to be consistent with the principle of non-forceable repatriation enunciated in the Indian resolution and the position thus far taken by the United Nations Command at Panmunjom with the sup- port of the participating nations. The United States considers that clarification of the following two points is essential: 1) an assurance that the proposed repatriation commission will be able to function SECRET SECURITY INEORMATION