Memorandum, State Department Summary of Telegrams

NLT(Nduol Aide)256 OFFICE OF THE SECRETARY OF STATE the WASHINGTON DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 October 4, 1951 By DEB NLT, Date 9-5-85 TOP SECRET SUMMARY OF TELEGRAMS EGYPT Ambassador Caffery reports that the Iranian situation is having an increasingly adverse effect on our chances on finding a solution for Anglo-Egyptian differences, particularly following the evacuation from Abadan. King Farouk says that it is possible for a "Mosadeq-Iran tragedy" to occur in Egypt also. Moreover, he feels that the British for their part will be more reluctant to make concessions in Egypt because of their recent experience in Iran. Farouk says that al- though he is aware of the deficiencies and weaknesses of the Wafd (Nationa list) Government he is in no position to stand up against it on the British question because it has the entire country behind it on that issue. Farouk insists that if we are going to do anything we must act very soon. GERMANY Our Representative to SHAPE reports that General Eisenhower is greatly concerned over recent develop- - ments in the German situation, particularly the Grotewohl proposal and the prospect that the East German regime may accept West German conditions for holding national elections looking to the unification of Germany. His concern stems from the obvious fact that the purpose of the Communist maneuver is, first, to bring to a halt and then to sabotage completely the Allied negotiations for a German defense contribution in the European De- - fense Force, and finally to neutralize Germany and deny it to the West. Eisenhower believes we should now be concentrating our most intensive effort on how to meet this situation, so that we can go ahead and conclude our negotiations for a German defense contribution re - gardless of how the Grotewohl proposal evolves. He believes we should at once impress on the UK and France the urgency of developing soonest an agreed tripartite course of action which the West German Governmentmight follow to insure the best possible chance of concluding the present defense negotiations with Germany in the coming weeks. TOP SECRET