CABLE TO THE WHITE HOUSE FROM CAIRO

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-471-6-9-3
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: December 18, 2012
• Sequence Number: 9
• Publication Date: February 1, 1974
• Content Type: CABLE

No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-9-3
T 0 P S E C R F T, *******S COP"'
n = ~~ #0104 o.32>1618
n O111503Z FEB 74' ZYI4
F,l 'CAIRO 25X1
Tt_l ,THE WHITE HOUSE,
T' O P S E C R E
NSITIVF EXC1_USIV"ELY EYES ONLY o11503Z P 74 vIA
FEBRUARY , 1974.
I4MFnIATE
TO: SECRETARY'k.I.$SINGER
FROM: AMBASSADOR EILTS, CAIRO ln4
!; CAIRO'S 528 REPORTED INCONCLUSIVE'OUTCOniE OF BECHTEL/
SLIMED TALKS. BECHTEL' MUST NOW rONSIDER HOW TO REPLY TO
E`i'YPTIAN (AMIN) REQUEST TO ACCEnE TQ EXTENSION OF EXISTING r((1NTRACTi,
D -SwITE FACT BECHTEL'VICE PRESII-ENT O'CONNEI:L PUT SUMFO
ON NOTICE THAT AS. ?F: MIDNIs:HT JANUARY 31 PRESENT Ct1NTRACT
IN'VALIDATE.D BECAUSE OF EGYPTIAN/SUMEQ NON-COMPLIANCE. WHIt 11
MAY BE HARD TO BELIEVE, THE, FACT I S THAT EGYPT AND SUMED
3, Ai* AT THE MOMENT TOTALLY INCAPABLE OF ANY DECISION--
MAKING PENDING THE ORGANIZATION OF SUMED LATER THIS MONTH.
N-VWHELESS, THEY WANT PRESENT CONTRACT EXTENDED TO
OBTAIN ALL BENEFITS OF ADVANTAG>^_OIIS PRICES NEGOTIATED
t EARL IER. VARIOUS OUTSTANDING ISSUES, SUCH AS ADEQUATE
LETTERS OF GUARA 'EE,,BECHTEL MANAGEMENT AUTHt1RITY, ETC.,
'HAVE YET BE RFSOt ED WHEN A . SUMFD MANAGEMENT ADM I N I S-
T!'rATION IS ORGANIZED AND AVAILAPLE TO NEGOTIATE.
2. O'CoNNELL AND HIS GROUP HAVE. !--NDERSTANDABLY FOUND
THEIR DEALINGS OF;.; THE LAST FEW DAYS WITH THr EGYPTIANS
TRAUMATIC. I SENSE SOME STRONGLY DIVIDED VIEWS AMONG THEM
W!iiE THER TO CONTINUE ALONG PRESENT COURSE BY EXTENDING
CrnNTRACT AS EGYPTIANS HAVE REQUFSTED ^R WHETHER To DROP
T~,iE WHGLE, AFFAIR', THEY ARf- CONSCIOUS OF IMPLICATIONS OF A
RFCHTEL PULLDUT.AT THIS LATE DATE, BUT 'ARE EQUALLY Ct_)N-
CfRNFD THAT SUMED `WILL FAIL. To HONOR ITS FINANCIAL OHLIGA-
TIONS AND INTERFERE;'1W BECH.T.EL'$ MANAGEMENT AUTHORITY
Tl A POINT WHEREIC^$TEL INCURS LOSSES., THuIR FEAR IS A
PROPER ONE. I OtIk.1'IVE' THEY SHOULI'l HOLD OUT FnR ADEQUATE
FINANCIAL GUAR&WTOtS AND MANAGEMENT RIGHTS. O'CONNELL
AND HIS t-nLLEAGU S' HAVE DECIDED To PUT THE WHOLE MATTER
* * * * * * * *'r,; ,,,* * * * * *WHSR COMMENT * * * * * * * * * a
HAK, SCCIWCROFT, MC,EARLANE, Rflf1MAN
PSN:052160 PAGE.01 TOR:032/16:3'3Z OTG:0i1 01Z EEB 74
#****** `f 0 P S E C R F T *******S CO
No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-9-3
 No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-9-3
L7 -fK It
6EF0RE STEVE B`ECI T 1~s JR., FOR A DECISION nN WHETHER TO
I 00 NOT
CC"EnE TO AI"tINAS REQUEST Tn EXTEND CONTRACT,
W HOW STEVE BECHTE`L? ' , JR ., FEELS ABOUT THE PIPELINE
SINCE pRC Jr-CT.',IS OF MAJOR IMPORTANCE IN STRENGTHENING
1
3
. .1 U, ,:CnE PELATIONS, YGU MAY tSK TO CONSIDER TELEPHONING OR
HV.11 G. UNDERSECRETARY FQR P.CONOMIC AFFAIRS TELEPHONE
SfE E BECHTEL.., JR-`% I1N CALIFORNIA TO EXPRESS nUR INTEREST
I N PECHTEL' S CONT-. MU' .' 'G ITS EFFnRTS TO RESOF, WE OUTSTANDING
P. CIRLEMS. AND TO FINALwIZE CONTRACT. THE BT"CHTEL DIALOGUE
WI H SUMED SHOULD BE PURSUPD. IWDULD.HOPE THAT STEVE
HFChJ1,E.La JR,.MIGrHT 91; ASKED TO SHOW REASONAiiLE FLEXIHILITY Th!
t?I NGNFt"t.
4," 1'WILL OF' COUtSL DD, ALL THAT T,CAN TO TQY TO MAKE
Ei:"YPTIANS.;AWARE 01T4 :'NEEp TO FULFILL THEIR OBLIGATIONS
I . P.E.CHTEL IS TCJ 04, PERSUADED Tn EXTSKD THE CONTRACT.
.: AS~ A ;MATTER ' O F ' LOAN TO' SLIMED
WA$ APPARENTLY NEVER BROACHED INS ANY OF THE RECHTEL TALKS
119"-,THIS WEEK WITI4 EGYPTIAN OFFICIALS.
02 TUR:032/16:,33Z ()TG:OI i 5oaZ FFF3 7.4
S E C R E T *******4 C(In ,
No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-9-3