Memorandum, State Department Summary of Telegrams

E.O. Tzpes, cuicletines, Sec. March 3-102 9-9-85 6, 1982 CECLASSIFIED THE SECRETARY OF STATE WASHINGTON State Dept. DEBNET, Date January 29, 1952 By SECRET SECURITY INFORMATIO SUMMARY OF TELEGRAMS UNITED KINGDOM Our Embassy in London reports that the House of Commons reassembles today in an uneasy atmos - phere with important statements expected from Chancellor of the Ex- chequer Butler on the economic situation and Mr. Churchill on the Washington talks. On the economic side, the government ministers have been warning the country that the UK is in a serious position which can be corrected only by measures which will hurt. The government plans to ask for votes of confidence on the policies which Butler will outline at the end of a two-day debate on the economic position. Labor is expected to support steps to reduce imports and increase exports, but will doubt- less oppose any cut in food subsidies or reductions of expenditures for education or social services. The left-wing of the Labor Party will charge that the crisis is due to rearmament and will demand a reduction in de- fense expenditures, but this latter pressure should not worry the govern- ment. Regarding the Washington talks, the government is concerned over mounting Labor apprehension regarding the commitments Churchill may. have made on Far East policy. Labor will also be ex- tremely critical of the Yoshida-Dulles letter. The statement by Churchill, which may be postponed, will only be a curtain-raiser for a full dress foreign affairs debate next week. At that time other issues such as the German demand for admission to NATO may further widen Conservative and Labor views on foreign policy. While our Embassy believes the government can ride out this probable storm, it believes Eden still hopes to retain 'non-partisan" support for his policies and, therefore, Labor attitudes may significantly effect government policy. EGYPT Secretary Acheson has informed the British Am- bassador that he understands Foreign Minister Eden is considering a conciliatory message to the Egyptians. He expressed the hope such a message would be issued very soon since it might be particularly helpful in the light of King Farouk's strong stand and the installation of the SECRET SECURITY INFORMATION