CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN POLICY ISSUES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000700920070-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 27, 2016
• Document Release Date: December 15, 2010
• Sequence Number: 70
• Publication Date: March 1, 1986
• Content Type: CABLE

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ZNY SS555 ZOC STATE ZZH
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DE RUEHEG x/4808/01 0591535
ZNY SSSSS ZZH
R 2815262 FEB 86
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 9122
INFO RUEHAL/AMCONSUL ALEXANDRIA 2208
RUEHTV/AMEMBASSY TEL AVIV 9170
RUEHJM/AMCONSUL JERUSALEM 5825
RUEHAM/AMEMBASSY AMMAPJ 8336
RUEHAD/AMEMBASSY BAGHDAD 7142
RUEHKH/AMEMBASSY KHARTOUM 2253
RUEHDS/AMEMBASSY ADDIS ABABA 1867
RUEHSA/AMEMBASSY PRETORIA 0277
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CAIRO 04808
EXDIS
STATE/H PASS SENATOR MATHIAS' OFFICE
E.O. 12356: DECL: OADR
TAGS: PGOV, EAID, ECON, PREL, EG, XF, XA
SUBJECT: CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN
- POLICY ISSUES
2. SUMMARY. DURING FEBRUARY 20-25 VISIT TO EGYPT,
SEtJATOR CHARLES MATHIAS, ACCOMPANIED BY SENATE STAFF
MEMBER CASIMIR YOST AND PERSONAL ASSISTANT FRED HILL,
MET WITH PRESIDENT MUBARAK, FOREIGN MINISTER ESMAT
ABDEL MEGUID, DEFENSE MINISTER ABDEL HALIM ABOU
GHAZALA, MIN5TATE FOR FOREIGN AFFAIRS BOUTROS GHO,I.I,
AND PRESIDENTIAL ADVISOR OSAMA AL-BAZ. AMBASSADOR,
DCM AND EMBOFFS ALSO ACCOMPANIED. A MAJOR TOPIC OF
DISCUSSION WAS U.S. AID PROGRAM, WITH THE EGYPTIANS
ASKING FOR QUICK DISBURSEMENT OF REMAINING SUPPLEMENTAL
ASSISTANCE FUNDS FOR FY 86 -- DOLS 265 MILLION -- CITING
DECLINE IN THE COUNTR"'S FOREIGN EXCHANGE EARNINGS
FROM OIL AND OTHER SOURCES. THEY EMPHASIZED GOE'S
DLFFICULTY WITH SPEED" IMPLEMENTATION OF ECONOMIC
REFORM MEASURES SUUGI-r BY U.S. THE EGYPTIAN PUBLIC
IS ALREADY UNHAPPY WITH ECONOMIC CONDITIONS, AND
FURTHER BELT -TIGHTENING COULD PROVE VERY DIFFICULT.
MUBARAK WAS POSITIVE ON THE PROPOSED GENERAL MOTORS
PROJECT, BUT SAID A DECISION ON WHETHER TO GO AHEAD
WITH THE AL-DABAA NUCLEAR POWER PLANT HAD BEEN
DEFERRED SO AS TO STUDY ITS ECONOMIC FEASIBILITY.
THE EGYPTIANS~CRITICIZED THE U.S. FOR WHAT THEY SAW
AS ITS OVERBLOWN REACTION AGAINST THE LIBYANS.
ON THE GULF WAR, THE INTERLOCUTORS EXPRESSED CONCERN
OVER THE LATEST .IRANIAN OFFENSIVE, BUT DEFMIN ABOU
GHAZALA REPORTED THAT THE IRAQIS VlERE RECAPTURfNG
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LOST TERRITORY. THERE WAS DISCUSSION OF VARIOUS
AFRICAN ISSUES; A HIGHLIGHT WAS GHALI'S URGING
AGAINST U.S. AID TO UNITA LEADER JONAS SAVIMBI.
THE ATMOSPHERICS OF THE CODEL'S MEETINGS WERE
EXCELLENT, CHA^ACT~RI"LEU BY WARMTH, CCM,'IVIALITY,
4ND FRANKNESS. DISCUSSIONS OF PEACE PROCESS AND EGYPTIAN/
ISRAELI RELATIONS REPORTED IN SEPTELS. END SUMMARY.
3. MUBARAK'S ASSESSMENT. ASKED ABOUT RELATIONS WITH
THE U.S. IN THE 45-MINUTE MEETING FEBRUARY 24,
MUBARAK DESCRIBED THEM AS "VERY GOOD"; REFERRING
TO BILATERAL TENSIONS THAT SURFACED OVER THE ACHILLE
LAURO AFFAIR IN OCTOBER, HE ASSERTED THAT "RECENT
MISUNDERSTANDINGS" WITH THE U.S. HAVE BEEN OVERCOME.
HE STATED THAT AMONG HIS TOP PRIORITIES AS PRESIDENT
IS INSTILLING A FAVORABLE IMAGE OF THE U.S. IN THE
EGYPTIAN PUBLIC. UNFORTUNATELY, MUBARAK ADDED, HIS
TASK IS SOMETIMES COMPLICATED BY LACK OF U.S.
SENSITIVITY TOWARD EGYPT (MUBARAK DID NOT ELABORATE
ON THE POINT, BUT OBVIOUSLY WAS REFERRING AGAIN TO
THE ACHILLE LAURO AFFAIR AND INTERCEPTION OF EGYPTIAN
AIRCRAFT BY U.S.).
4. EGYPT'S PLIGHT. A MAJOR TOPIC IN CODEL'S MEETING
WITH FORMIN ESMAT ABDEL MEGUID '; HE PREVIOUS OAY WAS
U.S. ECONOMIC ASSISTANCE, WITH ABDEL MEGUID MAKING
A STRONG PITCH FOR RAPID DISBURSEMENT OF THE
SUPPLEMENTAL FY-86 AID -- DOLS 265 MILLION. THE FORMIN
HIT REPEATEDLY ON THE THEME THAT EGYPT NEEDS THE FUNDS
DESPERATELY, BECAUSE OF THE DOWNWARD SLIDE IN EGYPT'S
FOREIGN EXCHANGE EARNINGS. THE COUNTRY IS IN A "VERY
DIFFICULT" PERIOD, HE STATED, BECAUSE OF THE DROP
IN REVENUES FROM OIL, TOURISM, OVERSEAS WORKERS'
REMITTANCES, AND SUEZ CANAL TOLLS.
5. AUSTERITY MEASURES. BECAUSE OF POPULAR DISCONTENT
OVER EGYPT'S ECONOMIC TROUBLES -- IN PART WHIPPED UP
BY THE OPPOSITION PARTIES -- ABDEL MEGUID SAID, THE
GOE FINDS IT DIFFICULT TO ADD TO THE PUBLIC'S HARDSHIPS
BY IMPLEMENTING RAPIDLY THE ECONOMIC REFORMS DESIRED
BY THE U.S. THE GOE IS FULLY AWARE OF THE NEED
FOR AUSTERITY MEASURES, HE CONTINUED, AND HAS ALREADY
TAKEN SOME STEPS -- E.G., LAST YEAR'S HIKE IN BREAD
PRICES AND RAISING OF ENERGY TARIFFS. HOWEVER,
S E C R E T SECTION 02 OF 05 CAIRO 04808
E.O. 12356: DECL: OADR
TAGS: PGOV, EAID, ECON, PREL, EG, XF, XA
SUBJECT: CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN
FURTHER MEASURES SHOULD BE ADOPTED GRADUALLY, HE
ARGUED, ADDING THAT THE GOE WOULD LIKE TO CONSULT
WITH THE U.S. ON THE TIMING AND NATURE OF ADDITIONAL
REFORM MOVES TO FACILITATE DISBURSEMENT OF THE
SUPPLEMENTAL AID.
6. MILITARY AID. DEFMIN ABOU GHAZALA TOLD CODEL
FEBRUARY 24 THAT HE HAS "NO COMPLAINTS" WITH THE U.S.
MILITARY AID PROGRAM, BUT A WAY MUST BE FOUND TO
COMPENSATE FOR THE 4.3 PERCENT CUT UNDER GRAMM-
RUDMAN-HOLLINGS (GRH). ECHOING ABDEL MEGUID, HE
POINTED OUT THAT THE REDUCTION COMES AT A TIME
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WHEN EGYPT'S ASSISTANCE NEEDS ARE GREATER THAN EVER,
BECAUSE OF THE PLUMMETING OF FOREIGN EXCHANGE EARNINGS.
-- ON FMS DEBTS, FORMIN ABDEL MEGUID DECLARED THAT
EGYPT RESPECTS ITS OBLIGATIONS AND WILL MAKE THE PAYMENT
OF DOLS 88 MILLION DUE IN MARCH. HE ADDED THAT
EGYPT, LIKE OTHER COUNTRIES WITH DEBT PROBLEMS (HE
CITED MEXICO AND VENEZUELA AS EXAMPLES), IS A "VICTIM"
OF THE BROOKE AMENDMENT.
7. GM PROJECT. ON THE PROPOSED AUTOMOBILE ASSEMBLY
PLANT TO BE RUN JOINTLY BY GENERAL MOTORS AND THE
EGYPTIAN FIRM, NASCO, MUBARAK MADE FAVORABLE NOISES.
HE SAID HE HAD INSTRUCTED PRIME MINISTER ALI LOTFY
TO FINALIZE THE PROJECT "AS SOON AS POSSIBLE."
MUBARAK EXPLAINED THAT UNDER THE DEAL, GM'S ROLE
WOULD BE LIMITED TO THE ASSEMBLY OF PASSENGER CARS;
NASCO WOULD RETAIN SOLE CONTROL OVER ITS EXISTING
TRUCK AND BUS MANUFACTURING OPERATION. WERE GM TO
PARTICIPATE IN THE LATTER OPERATION AS WELL, HE SAID,
THE EGYPTIAN PUBLIC WOULD BE OPPOSED, FEARING THAT
THE GOE WAS ALLOWING THE U.S. TO TAKE OVER THE
COUNTRY'S PUBLIC SECTOR (NASCO I5 A PUBLIC SECTOR
FIRM). MUBARAK ADDED THAT HE HAD BEEN FAVORABLY
IMPRESSED WITH THE EXISTING GM PROJECT IN EGYPT --
A TRUCK ASSEMBLY PLANT LOCATED AT THE SIXTH OF
OCTOBER CITY, NEAR CAIRO.
?- DEFMIN ABOU GHAZALA WA5 ALSO POSITIVE ON THE
PROPOSED GM DEAL, STATING THAT THE GROUNDWORK HAS
BEEN LAID (IN TERMS OF GOE SUPPORT) AND IT WOULD
BE FINALIZED. HE STATED THAT INDUSTRY MINISTER
MOHAMED ABDEL WAHAB, IN PARTICULAR, HAS WITHSTOOD
STRONG PRESSURE FROM GM'S COMPETITOR FOR THE PROJECT,
ITALY'S FIAT COMPANY, AND IS NOW ON GM'S SIDE.
8. NUCLEAR POWER. ON THE PROPOSED NUCLEAk POWER
PLANT AT AL-DABAA -- FDR WHICH WESTINGHOUSE IS AMONG
THE BIDDERS TO SUPPLY THE REACTOR -- MUBARAK SAID
HE HAS DELAYED HIS DECISION. CITING EGYPT'S
WORSENING ECONOMIC SITUATION -- IN PARTICULAR, THE FALL
IN OIL REVENUES -- HE SAID GOE EXPERTS WERE DOING A
STUDY ON THE ECONOMIC FEASIBILITY OF BUILDING THE
AL-DABAA POWER PLANT.
9. FRANK ADVICE. MUBARAK, ABDEL MEGUID, AND MINSTATE
FOR FOREIGN AFFAIRS BOUTROS GHA'_I PROVIDED STRAIGHT-
FORWARD, IF UNFLATTERING, ASSE55MEN"fS OF U.S. POLICY
TOWARD LIBYA. SCORNING LIBYAN LEADER QADHAFI AS A
MADMAN, MUBARAK GAVE HIS "FRANK VIEW" THAT THE U.S.
WAS GIVING HIM UNDUE ATTENTION AND EXAGGERATING THE
THREAT THROUGH ITS RECENT ECONOMIC SANCTIONS CAMPAIGN
AND MILITARY MANEUVEPS OFF THE LIBYAN COAST. "BE
CAUTIOUS WITH QADHAFI," MUBARAK. ADVISED, BUT "IGNOP,E
HIM"; MUBARAK TERMED TH'c U.S. MOVES "NOT NECESSARY."
MUBARAK RULED OUT POSSIBLE MILITARY ACTION AGAINST
LIBYA, RECOUNTING THAT RECENTLY HE HAD GIVEN
ASSURANCES OF EGYPT'S PEACEFUL INTENTIONS TO THE
SOVIET AMBASSADOR HERE, WHO WAS CONCERNED ABOUT THE
S E C R E T SECTION 03 OF 05 CAIRO 04808
EXDIS
STATE/H PASS SENATOR MATHIAS' OFFICE
E.O. 12356: DECL: OADR
SECRET
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TAGS: PGOV, EAID, ECON, PREL, EG, XF, XA
SUBJECT: CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN
SAFETY OF SOVIET TECHNICIANS NEAR THE EGYPTIAN/
LIBYAN BORDER IN EVENT OF AN EGYPTIAN ATTACK.
-- ABDEL MEGUID STATED THAT WHILE HE OPPOSED THE
U.S. SANCTIONS AGAINST LIBYA, PERHAPS THEY HAD ONE
WORTHWHILE EFFECT -- KEEPING QADHAFI OFF BALANCE.
EGYPT WOULD HAVE PREFERRED, ABDEL MEGUID SAID, THAT
THE U.S. GONSULT WITH IT BEFORE EMBARKING ON THE ANTI-
LIBYAN ACTIONS. HAD THE U.S. ASKED THE GOE'S PRIOR
ADVICE, HE DECLARED, THE EGYPTIANS WOULD HAVE
SUGGESTED A MORE GRADUAL IMPLEMENTATION OF SANCTIONS,
SO AS NOT TO CATCH FRIENDLY (TO THE U.S.) COUNTRIES
BY SURPRISE.
-- GHALI, IN THE MEETING WITH THE CODEL FEBRUARY 23,
CRITICIZED THE U.S. FOR "MAKING QADHAFI A HERO" WITH
THE SANCTIONS, DECLARING THAT NO ONE TAKES THE U.S.
EFFORT SERIOUSLY. WESTERN EUROPE REFUSED TO FOLLOW
THE U.S. EXAMPLE AND APPLY SANCTIONS, HE OBSERVED,
BECAUSE IT WAS NOT IN THE EUROPEANS' ECONOMIC
INTEREST. ASSESSING SOVIET/LIBYAN RELATIONS, GHALI
SAID THERE IS MUTUAL DISTRUST BETWEEN THE TWO
COUNTRIES AND THEIR ALLIANCE IS BASED ON THE COLD
CALCULATION OF RESPECTIVE INTERESTS. GHAI.I WAS
UNABLE TO CONFIRM REPORTS OF THE SOVIETS' INSTALLING
NF_lJ RADAR SYSTEMS IN LIBYA.
10. EGYPTIAN CONCERN. COMMENTING ON THE LATEST
IRANIAN OFFENSIVE, ABDEL MEGUID EXPRESSED CONCERN
THAT THE IRANIANS MIGHT SUCCEED IN CONSOLIDATING
THEIR TERRITORIAL GAINS. WERE THEY TO DO S0, HE
STATED, THE SMALL STATES NEARBY -- E.G., KUWAIT --
WOULD BE FAR MORE VULNERABLE TO IRANIAN PRESSURES;
"THE IRANIANS COULD DICTATE THEIR W~LL" TO THESE
COUNTRIES, ABDEL MEGUID REMARKED. BEYOND THIS IMMEDIATE
WORRY, INDICATED ABDEL MEGUID, THE EGYPTIANS WERE
MINDFUL OF THE POTENTIAL THREAT TO REGIONAL STABILITY
POSED BY THE IRANIANS' MILITANT SHIA DOCTRINES. HE
SAID EGYPT'S SUPPORT FOR IRAQ WAS BASED ON THE IMPERATIVE
OF CONTAINING KHOMEINI'S REVOLUTION.
11. IRAQI SUCCESSES. ABOU GHAZALA WAS MORE UPBEAT,
REPORTING THAT THE IRAQI FORCES HAVE RECOVERED ABOUT
HALF OF THE TERRITORY -- 5 KILOMETERS -- LOST IN THE
IRANIAN OFFENSIVE. THE IRANIANS WERE NOW TRYING TO
FIND A WAY TO WITHDRAW FROM WHAT REMAINED OF THEIR
BEACHHEAD WITHOUT BEING ROUTED. INDICATIVE OF THE
FEROCITY OF THE FIGHTING, ABOU GHAZALA REVEALED, IS
THE FACT THAT THE IRAQI FORCES EXPENDED FIVE TIMES
MORE AMMUNITION IN THIS ENGAGEMENT THAN IN ANY
PREVIOUS BATTLE IN THE WAR. HE MENTIONED A VISIT TO
CAIRO BY AN IRAQI MILITARY DELEGATION SEEKING TO
REPLACE THE AMMUNITION USED, REVEALING THAT THE GOE
HAD INSISTED THAT THE IRAQIS PAY CASH ON THE BARRELHEAD
FOR THE 300 HUNDRED MILLION DOLLARS' WORTH OF AMMUNITION
REQUESTED. THE SAUDIS REFUSED TO COVER THE COST,
ABOU GHAZALA SAID, AS THEY BELIEVE THAT THEIR RECENT
INCREASE IN AID TO IRAQ IS MORE THAN SUFFICIENT FOR
ITS WAR REQUIREMENTS.
12. FUTURE IRANIAN ATTACKS. ASKED ABOUT POSSIBILITY
OF A NEW IRANIAN OFFENSIVE IN THE NORTHERN SECTOR,
ABOU GHAZALA RULED THIS OUT -- AT LEAST FOR THE
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13. EGYPTIANS IN IRAQ. ABOU GHAZALA ESTIMATED THE
NUMBER OF EGYPTIANS WORKING IN IRAQ AT 2.5 MILLION AND
SAID MOST ARE THERE ILLEGALLY -- I.E., WITHOUT THE
REQUIRED WORK PERMIT FROM THE GOE. HE ADDED THAT
THERE ARE 38 EGYPTIAN POW'S BEING HELD IN IRAN.
S E C R E T SECTION 04 OF 05 CAIRO 04808
E.O. 12356: DECL: OADR
TAGS: PGOV, EAID, ECON, PREL, EG, XF, XA
SUBJECT: CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN
14. SUDAN. MUBARAK DISMISSED THE CURRENT POLITICAL
FERMENT IN SUDAN'S PRE-ELECTION ENVIRONMENT AS BUSINESS
AS USUAL FOR THAT COUNTRY; SINCE THE 1950'S, HE SAID,
THE SUDANESE POLITICAL SCENE HAS ALTERNATED BETWEEN
PERIODS OF DEMOCRACY AND DICTATORSHIP AND IS CURRENTLY
IN A "DEMOCRACY" PHASE. GHALI PREDICTED THAT THE
ELECTIONS WOULD OCCUR ON SCHEDULE AND SAID THE UMMA
AND UNIONIST PARTIES WOULD EMERGE DOMINANT IN THE
BALLOTING. HE MENTIONED THAT SUDANESE LEFTIST
ELEMENTS WERE TRYING TO ENLIST THE SUPPORT OF JOHN
GARANG TO FORCE POSTPONEMENT OF THE ELECTIONS, BUT
DOUBTED THAT GARANG WOULD COOPERATE.
15. LIBYAN TIES. MUBARAK BELIEVED THAT SUDANESE
LEADER SOWAR AL-DAHAB FINALLY HAS BECOME AWARE OF
THE MENACE THAT OADHAFI REPRESENTS AND NOW IS MORE
CIRCUMSPECT IN HIS LIBYAN DEALINGS.
16. EGYPT'S APPROACH. MUBARAK AND GHALI STATED THAT
THE GOE CONTINUES TO PURSUE ITS LOW-PROFILE APPROACH
WITH POST-NIMEIRI SUDAN, WITH_MUBARAK SAYING HE
DELIVERS HIS ADVICE TO THE SUDANESE -- E.G., ON THE
DANGERS OF COOPERATING WITH LIBYA -- IN A "QUIET"
WAY, LEST THE SUDANESE TAKE OFFENSE AT BEING PUBLICLY
INSTRUCTED BY EGYPT. GHALI HINTED THAT HE DID NOT
AGREE WITH HIS GOVERNMENT'S BEHIND-THE-SCENES POLICY
ON SUDAN, MENTIONING THAT THOSE OFFICIALS (LIKE
HIMSELF, HE IMPLIED) WHO FAVORED A MORE VISIBLE
EGYPTIAN STANCE HAD LOST THE POLICY BATTLE TO
PROPONENTS OF THE LOW-KEY RELATIONSHIP. MUBARAK
CONFIRMED THAT THE EGYPTIAN/SUDANESc INTEGRATION
SCHEME IS BEING RESUMED, AFTER BEitJG IN LIMBO AS A
CONSEQUENCE OF THE APRIL 1985 COUP.
17. CHAD. ABDEL MEGUID APPLAUDED THE FRENCH RESPONSE
TO THE LATEST LIBYAN MOVE IN CHAD. ARGUING THAT QADFIAFI
WILL THINK TWICE BEFORE THREATENING THE NDJAMENA
GOVERNMENT AGAIN. HOWEVER, ABOU GHAZALA SAID, THERE
WERE LIMITS TO THE FRENCH ASSISTANCE; THE FRENCH
WOULD PROVIDE CHADIAN LEADER HABRE WITH TECHNICAL
ASSISTANCE, BUT WOULD NOT SUPPLY COMBAT TROOPS TO
FIGHT. MENTIONING THE CURRENT VISIT TO CAIRO BY
HABRE'S ENVOY SEEKING MILITARY ASSISTANCE, ABOU
GHAZALA TOLD HIM EGYPT WOULD HELP, BUT ALSO SUGGESTED
THAT HE APPROACH THE U.S. FOR ASSISTANCE. ABOU
GHAZALA, RECALLING THAT "THREE MONTHS AGO" THE GOE
SUPPLIED HABRE WITH SMALL ARMS AND AMMUNITION, OBSERVED
THAT CHAD'S URGENT NEED IS FOR AN AIR DEFENSE SYSTEM --
SAM-7'S OR HAWKEYES -- FOR PROTECTION AGAINST THE LOW-
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FLYING LIBYAN AIRCRAFT. HE EXPRESSED HOPE THAT HABRE
WOULD ACCEPT THE GOE'S OFFER TO TRAIN CHADIAN
SPECIALISTS IN THE USE OF SAM-7'S. CLOSING ON A SOMBER
NOTE, ABOU GHAZALA RECOUNTED HIS ADVICE TO THE FRENCH
ANU OTHERS YEARS AGO THAT HABRE SHOULD ?E GIVEN
MIt.ITARY AID, SO AS TO PARRY THREATS FROM LIF,YAN
Lc'AOER QADHAFI. THE ADVICE FELL ON DEAF EARS, NO
SIGNIFICANT AID WAS FORTHCOMING, AND NOW IT IS T00
LATE TO FORESTALL LIBYAN MEDDLING IN CHAD, HE CONCLUDED.
18. FRANCOPHONE CONFERENCE. CITING THE RECENT
FRANCOPHONE AFRICA CONFERENCE IN PARIS, GHALI SAID
THERE WAS NO DISCUSSION OF THE SITUATI[lN IN CHAD.
CHAD'S FOREIGN MINISTER, AMONG THE ATTENDEES, HAD
CONSIDERED PROPOSING A RESOLUTION THAT WOULD CONDEMN
LIBYA'S THREAT AGAINST HABRE, BUT GHALI HAD COUNSELED
AGAINST IT. HE EXPLAINED THAT SUCH A RESOLUTION
PROBABLY WOULD NOT HAVE RECEIVED THE OVERWHELMING
SUPPORT REQUIRED TO BE MEANINGFUL, AND ANYTHING LESS
THAN NEAR-TOTAL ENDORSEMENT WOULD HAVE BEEN A BLOW
TO THE HABRE GOVERNMENT'S PRESTIGE. SUCH A RESOLUTION
WOULD ALSO HAVE CREATED UNNECESSARY DISSENSION
S E C R E T SECTION 05 OF 05 CAIRO 04808
E.O. 12356: DECL: OAOR
TAGS: PGOV, EAID, ECON. PREL, EG, XF, XA
SUBJECT: CODEL MATHIAS VISIT: DISCUSSION OF FOREIGN
19. ETHIOPIA. GHALI REPORTED THAT EGYPT'S RELATIONSHIP
WITH ETHIOPIA REMAINS TENSE, AS REFLECTED IN THAT
COUNTRY'S REFUSAL TO ACCEPT EGYPTIAN TECHNICAL
ASSISTANCE. HE ATTRIBUTED ETHIOPIAN LEADER MENGISTU'S
PERSISTING MISTRUST OF EGYPT TO HIS PERCEPTION THAT
EGYPT ACTIVELY SUPPORTS THE ERITREAN REBELS AND
SIDES WITH SUDAN AGAINST ETHIOPIA. THE GOE'S EFFORTS
TO SEEK ETHIOPIA'S COOPERATION ON VITAL MUTUAL
INTERESTS -- E.G., MANAGEMENT OF NILE WATERS --
HAVE NOT SUCCEEDED THUS FAR, GHALI INDICATED.
-- LIKEWISE, GHALI FAILED TO SEE ANY SIGN THAT
TENSIONS IN ETHIOPIAN/SUDANESE RELATIONS WERE EASING.
20. ANGOLA. GHALI SAID THE GOE WAS EMBARRASSED OVER
THE U.S. VISIT BY UNITA LEADER JONAS SAVIMBI, AS
ETHIOPIA AND OTHER AFRICAN COUNTRIES WERE CRITICIZING
EGYPT FOR NOT CONDEMNING THE WHITE HOUSE RECEPTION
OF SAVIMBI. ASKED ABOUT THE EFFECT OF GIVING U.S.
AID TO SAVIMBI, GHALI-SAID THIS IS WIDELY OPPOSED IN
AFRICA, WHERE SAVIMBI IS REGARDED AS A SOUTH AFRICAN
STOOGE AS WELL AS A SECESSIONIST CAUSING TROUBLE FOR
A LEGITIMATE CENTRAL GOVERNMENT. AFRICAN HEADS OF
STATE, GHALI COMMENTED, HAVE AN ABIDING FEAR OF
SECESSIONIST MOVEMENTS, AND, ACCORDINGLY, HAVE NO
SYMPATHY FOR SAVIMBI. DESCRIBING ANGOLAN LEADER DOS
SANTOS AS "FLEXIBLE" AND DESIROUS OF A PEACEFUL
SETTLEMENT WITH SAVIMBI, GHALI URGED THE U.S. TO BE
MORE FORTHCOMING WITH DOS SANTOS BY, FOR EXAMPLE,
PROVIDING HIM WITH ASSISTANCE.
21. SOUTH AFRICA. GHALI STRESSED THAT AFRICAN COUNTRIES
GENERALLY WERE SHOWING A GREATER READINESS THAN IN
THE PAST TO TAKE CONCRETE SANCTIONS AGAINST SOUTH
AFRICA -- DESPITE THE ECONOMIC DISADVANTAGES FOR SOME
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STATES. HE SAID PARTICIPANTS IN THE FRANCOPHONE AFRICA
CONFERENCE HAD AGREED TO HOLD A CONFERENCE IN MAY/JUNE
-- PERHAPS IN WASHINGTON OR A WESTERN EUROPEAN CAPITAL --
TO DECIDE ON SANCTIONS TO BE IMPOSED ON SOUTH AFRICA.
22. NATIONAL SECURITY. GHALI STATED THAT WHILE EGYPT'S
MILITARY LEADERS FOCUS ON ISRAEL AND LIBYA AS POTENTIAL
THREATS TO EGYPTIAN SECURITY, HE FEELS THAT THE FOCUS
INSTEAD SHOULD BE MORE ON AFRICA. IT IS THERE,
HE ELABORATED, THAT EGYPT'S MOST VITAL INTEREST LIES --
SAFEGUARDING ACCESS TO NILE WATERS. TO ILLUSTRATE,
GHALI CITED THE STALLED JONGLEI CANAL PROJECT IN
SUDAN; THE CANAL WOULD SUPPLY EGYPT WITH WATER TO
CULTIVATE AN ADDITIONAL ONE MILLION ACRES OF DESERT
LAND, BUT BECAUSE OF SOUTHERN SUDAN'S TURMOIL, THE
PROJECT CANNOT BE COMPLETED.
23. COMMENT: THE SENATOR UNIFORMLY RECEIVED A WARM
AND EXTREMELY CONVIVIAL WELCOME AT EVERY EVENT
ARRANGED IN EGYPT. THE EGYPTIAN HOSTS CLEARLY WERE
PLEASED TO HAVE THE OPPORTUNITY TO MEET A SENIOR
SENATOR CONSIDERED A LONG-TIME FRIEND, AND THEY USED
THE OCCASION TO ENGAGE IN FRANK, BUT AFFABLE
EXCHANGES. IF THERE WAS A SINGLE DOMINANT THEME,
PERHAPS IT WAS THAT EGYPT, WITH ITS MOUNTING ECONOMIC
DIFFICULTIES, IS MORE THAN EVER RELIANT ON U.S.
ASSISTANCE TO SEE IT THROUGH. END COMMENT.
24. CODEL'S DISCUSSIONS OF PEACE PROCESS AND
EGYPTIAN/ISRAELI RELATIDPJS REPORTED IN SEPTELS.
25. CODEL DID NOT SEE THIS MESSAGE BEFORE DEPARTING
EGYPT. .
CLARK
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2011/10/24 :CIA-RDP90B01390R000700920070-5