CABLE TO THE WHITE HOUSE FROM CAIRO

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-481-15-11-9
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 2
• Document Creation Date: January 11, 2017
• Document Release Date: January 2, 2013
• Sequence Number: 11
• Publication Date: February 1, 1974
• Content Type: CABLE

No Objection to Declassification in Part 2013/01/02: LOC-HAK-481-15-11-9
#0104 032161.8
0 010?7 cPB 74 ZY
25X1 ON-FILE NSC RELEASE INSTRUCTIONS
F C,AIRf1 APPLY
TO THE WHITE HOUSE
*******S COr>v
T 0 P S E C R E T SENSITIVE EXCLUSIVELY EYES ONLY 011503Z FrB 74 VIA
FPURL)AKY Is 1974
MEDIATE
TO3.. SECRETARY KISSINGEP
FRLIM: AMBASSADOR EILTS, CAIRO 1n4
1... CAIRO'S 528 REPORTED INCONCLUSIVE OUTCO'+E OF BECHTEL/
SUMFO TALKS. BECHTEL MUST NOW CONSIDER HOW TO REPLY TO
E-r;YPTIAN (AMIN) REQUEST TO ACCEDE TD EXTENSION OF EXISTING rONTRACT,
MSPI E FACT BECHTELVICE PRESIDENT O'CONNELL PUT SUMED
': QN NOTICE THAT AS OF MIONIr;HT JANUARY 31 PRESENT CONTRACT
INVALIDATED BECAUSE OF EGYPTIAN/SUJMED NON-CnMPLIANCE. WHft' IT
MAY BE HARD T13 BELIEVES THE FACT IS THAT EGYPT AND SUMED
, A,?tE AT THE. MOMENT TOTALLY INCAPABLE OF ANY PECISION--
M!\KING PENDING THE ORGANIZATION OF' SUMED LATER THIS MONTH.
NEVERTHEIESSs THEY WANT PRFSENT CONTRACT EXTENDED To
t1RTAIN ALL BENEFITS OF AOVANTAGEOt!S PRICES NEGOTIATED
EARLIER. VARIOUS OUTSTANDING ISSUES, SUCH AS ADEQUATE
LETTERS OF GUARANTEES. BECHTEL MANAGEMENT AUTHORITY, ETC.,
HAVE YET BE RESOLVED WHEN ASUMPD MANAGEMENT ADMINIS-
T?tATION IS ORGANIZED AND AVAILAPLF TO NEGOTIATE.
2. p'CoNNELL AND HIS GROUP HAVE UNDERSTANDABLY FOUND
THEIR DEALINGS OF THE LAST FEW GAYS WITH THr EGYPTIANS
TRAUMATIC. I SENSE-SOME STRONGLY DIVIDED VIEWS AMONG THEM
'WHETHER TO CONTINUE` LONG PRESENT COURSE BY EXTENDING
,Cn'NTRACT AS EGYPTIANS.HAVE REQUESTED OR WHETHER TO DROP
THE WHOLE AFFAIR. THEY ARE CONSCIOUS OF IMPLICATIONS OF A
BECHTEI PULLOUT-AT TH,IS::LATE DATE, BUT ARE EQUALLY CON-
CERNFD THAT SLIMED WILL FAIL TO HONOR ITS FINANCIAL CIBLIGA,-.
TIONS AND INTERFERE IN BECHTEL'S !MANAGEMENT AUTHORITY
To A POINT WHERE BECHTEL INCURS LOSSES.. THEIR FEAR IS A
PROPER ONE. I BELIEVE THEY SHOULD HOLD OUT FOR ADEQUATE
FINANCIAL GUARANTEES,-AND MANAGEMENT RIGHTS. O'CONNELL
AND HIS C13LLEAGUES HAVE DECIDED to PUT THE WHOLE MATTER
* * * * * * * * * * .*
* * * * *WHSR COMMENT $ * * * * * * * * *
HAK,SCOWCROFT,MCFARLANEsR0nMAN
PSN:052160 PAGE 01 TOR:032/16:33Z DTG:011503Z FEB 74
No Objection to Declassification in Part 2013/01/02 LOC-HAK-481-15-11-9
 No Objection to Declassification in Part 2013/01/02: LOC-HAK-481-15-11-9
w w
*** ** T 0 P S E C R E T *******S C pv
R? -F ;RE STEVE BECHTELP JR., FOR a rEC I S I1?N O.-1 !Y HETHER TO
AcC rr5E TO AMI N' S REQUEST Tn EXTFNf CONTRACT. I DO NOT
K=.;O=t HOW STEVE BECHTELs JR., FEELS ABOUT Thy PIPELINE
P D,1FCT.
SINCE PROJECT IS OF MA-.)OR I#R,PORTANCE IN STRENGTHENING
U;-GOE RELATIONS, YOU MAY wISH TO CONSI1IER TELEPHONING OR
HaV!NG UNDERSECRETARY FOR FCONOMIC AFFAIRS TELEPHONE
SrE~E BECHTEL, JR.s IN CALIFORNIA TO EXPRESS OUR INTEREST
I PECHTEL'S CONTINUING ITS EFFORTS TO RESOtt,VE rIUTSTANDING
P:C1aLEMS AND TO FINALIZE CONTRACT. THE BECHTEL.DIALOGUE
WITH SUMED SHOULD BE PURSUPD. I w10ULD HOPE THAT STEVE
'BECHtELs JR. MIGHT.SE ?ASKEFv TO SH`7w REASONAILF FLEXIBILITY
OnINGNF.n..
4. t WILL OF COURSE DO ALL THAT I CAN TO TQY To MAKE
E;3YPTIANS AWARE OF THE NEE!) TO FULFILL THEIR? OBLIGATIONS
I.F? 4ECHTEL IS TO. BE PERSUAI'ED To EXTSKD THE CONTRACT.
5. AS A MATTER OF INTEREST, EXIM"LOAN TO SUMED
WAS APPARENTLY NEVER BROACHED IN ANY OF THE BECHTEL TALKS
CTS THIS WEEK WITH EGYPTIAN OFFICIALS.
725 ~.:
No Objection to Declassification in Part 2013/01/02: LOC-HAK-481-15-11-9