Memorandum from Secretary of State Dean Acheson to Ambassador, American Embassy, London

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3. a is SERVICET mon SEORET SECURITY INFURMATION AMERICAN EMBASSY, LONDON March 26, 1952 RPTD INFO: AMERICAN EMBASSY, CAIRO FROM SECRETARY FOR AMBASSADOR Pls deliver fol personal msg from me to Eden re Egypt soon as possible: QTE I am greatly disturbed by situation in Egypt and by the fact that such a short time remains before elections in which to reach a settlement. Our info leads us to believe that as each day passes without definite progress towards resolving outstanding issues the eventual survival of the present Govt is placed increasingly in jeopardy. I fear that unless the situation is chang ed substantially in the immediate future, opportunity for negots with moderate elements will have been lost and achievement of Western objectives with respect to Egypt thrown into grave doubt. I am fully aware of the problems which you are facing in connection with the Egypt situation, but I know from our talks in London and Lisbon that we are in accord that it is essential to move forward as quickly as possible in seeking a solution. As we here see it, the problem falls into two main parts: The first part involves analysis of the necessity for and feasibility of various courses of action in order to determine what the terms of settlement would have to be if agreement is to be reached and an appraisal of the risks which may be involved in those terms. The second part relates to the means of getting negots started without delay and the tactics to be employed in pursuing those negots. DECLASSIFIED Authority NLT 82-11 TOP SECRET SECURITI INFORMATION STATE DEPT. LTR. 2-3-d3 By HC NLT Date 3-11-63