INFORMATION ITEM

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-541-21-19-7
• Release Decision: RIFLIM
• Original Classification: T
• Document Page Count: 1
• Document Creation Date: January 11, 2017
• Document Release Date: June 21, 2010
• Sequence Number: 19
• Publication Date: November 22, 1975
• Content Type: MEMO

No Objection to Declassification in Full 2010/06/21 : LOC-HAK-541-21-19-7
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MEMORANDUM FOR:
FROM:
SUBJECT
THE PRESIDENT
BRENT SCOWCROFT
Information
Egyptian Foreign Aid Pros ects: In an analysis of Egypt's
prospects for foreign aid, state concludes that President
Sadat's gamble that he would receive enough foreign aid this
year to permit an additional increase in imports (estimated
at 60 percent) has paid off. Although he wants another $3
billion in foreign aid during 1976, which would allow in
creased imports to continue, a number of factors are working.
against this, including: the continued-Egyptian reluctance to
undertake the necessary economic reforms; the widely held
feeling among potential donors that being generous. with
Egypt encourages profligate, spending on imports; the reduc-
tion of tensions in the Middle East; and the feeling among
Western aid donors that the U.S. will pick up more and more
of the tab because of our desire for a Middle East settlement.
In another year or two, however, Egypt may be able to increase
its foreign exchange export earnings substantially above the
current annual level of about $1.3 billion. Receipts could
double over the next two to three years because of increased
earnings from oil exports and from Suez Canal tolls, substantial
increases in tourist spending in. Egypt, and completion of the
pipeline transporting oil-from Suez.to Alexandria for trans-
shipment to Europe. Even a doubling of export earnings, however,
would still cover' only about one-half of Egypt's $5 billion
1975 import bill. While foreign aid in 1976 and thereafter
probably will not be as generous as Egypt would like, chances
are good that donor nations will provide enough to permit
the economy to continue to muddle through at.a very low standard
of living for the average Egyptian and at a slow growth rate.
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No Objection to Declassification in Full 2010/06/21 : LOC-HAK-541-21-19-7