CABLE TO THE WHITE HOUSE FROM CAIRO

• Document Type: CREST
• Collection: Library of Congress
• Document Number (FOIA) /ESDN (CREST): LOC-HAK-471-6-14-7
• Release Decision: RIPLIM
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: January 11, 2017
• Document Release Date: December 18, 2012
• Sequence Number: 14
• Publication Date: February 3, 1974
• Content Type: CABLE

No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7
Op I"MMEC
nr- #0109 03413
0 P S E C R F T *******S C(lLL
O 031 1 FEB 74 ZYH
In wHITF HOUSE
T 0 P S E C R E T S'ENSITIV EXCt.USIVELY EYES ONLY 1312112
F- 'U Y ",
T ; SECRETARY KISS INGE-,?
FPOM: AMBASSADOR SILTS, CAIRO 1()9
HAVE JUST HAD HOUR LONG MEt-TING WITH DAVID ofCKEFFLLFR
AND VISITING CHASE GROUP. THEY SAW HEGAZI, EAWZI"+ FAHMY,
MIN'IST:EP OF RECONSTRUCTION OSMAN AND HEAD DL SUEZ CANAL AUI
HASFar)UR YESTFROAY AND ROCKf FELLER IS SEEING SACD.AT LATER
TnDAY. WE, DISCUSSED SEVERAL MATTE-RS:
A. SUEZ CANAL CITIES RECOkSTRUCTION:" ROCKEFELLER
RFCnUUNTFO THAT IN HIS VARIn,US MEETINGS OF YFSTERDAY,
nNLY FAHMY HAD BEEN A BIT AGGRESSIVE. HE HAD CHARGFD
USG HAS NOT YET DONE ANYTHING TO SHOW APPRECIATION FOR
ON-FILE NSC RELEASE
INSTRUCTIONS APPLY
W-A.T SADAT HAS DONE. SPECIFICALLY, HE SUGGFSTEIi USG SHOUL1
PkrC)Vi0E ASSISTANCE OF SOMEWHAT OVER SEVEN BILLION
n('LLARS TO RECONSTRUCT" DESTR.OYEn SUEZ CITIES AND
CLAIMED HE WAS STILL AWAITING A REPLY TO AN EARLIER
P~?OPoSAL THAT HE HAD ALLEGEDLY MApE TO THAT EFFFCT. I TOL-
ROCKFFELLER THAT ND SUCH POCIPOSA.L HAD BEEN +AOF TO ME. I
RFCAL'L.ED THAT SOME. MONTHS AGO FAHMY, WHEN TO,ORNING DOWN OUR
RFQt1FST TO USE A MILLION EDYPTIAN POUNDS Fns) ONFF PURPOSES- HA
COUNTERED WITH THE OFFHAND REMA'K WE SHOULD USE FORTY OR
FIFTY MILLION OF OUR EGYPTIAN POUNDS FOR SUEZ CANAL CITIES
RFCPNSTRUCTITIN ON GROUNDS wE WERE INDIRECTLY RESPONSIfLE Eli
THEIR DESTRUCTION. I TOLD ROCKEFELLER I COlILD NOT REGARi)
AS A SERIOUS PROPOSAL.
ROCKEFELLER SUGGESTED THAT IT MIGHT BE USEFUL IF
WE CHOSE ONE OR Tit , D IMPACT PROJECTS SOMEWHERE IN SUEZ
LANAI. CITIES FOR t 5, rECONcTRUCTInN ASSISTANCE AND
SUGGESTED PERHAPS t OSPITAti - I TPLD HIM THAT. FROM MY
VANTAGE POINT I WASS;yMPA'Tw :TIC in SUCH AN 1DEA# BUT I
THOUC'',HT WE SHOULD ALL RECOc',N I ZE THAT UNTIL I UCH TIME AS
OIL EMBARGO IS LIFTED4 IT WILL HE EXTREMELY DIFFICULT
To THINK IN TERMS%`"O0 ANY LARGE SCALE USG ASSISTANCE"
PROGRAM, MOREOVER, HAVING I N M I Nip THE KIND OF COMMENT
* * * * *WHSR COMMENT * * * * * * * * * * * * * *
HAK, S,COWCROF 1', MCF#R`L,ANE, RO(1MAN
PAGE 01
*'**** 0 P S F C R F T *******S Cf)Pl
No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7
 No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7
,qw w
******* l O P S E C R E T *******S CtI
F:AHMY AND OTHERS HAVE MADE OF ALLEGED USG 1'Sf10-CT'
R* SPIlNSIBILITY FOR DESTRUCTION OF SUEZ CANAi CITIES,
I HAP PERSONAL DOUBTS' ABOUT RECnNNSTRUCTING +lnSPITALS.
FCYPTIANS WOULC) BE LIKELY In CAST THIS IN TERMS OF
C ,MPFNSATDRY HELP. IT WOUI D BE BETTER TO THINK OF SOME--
THING ELSE. TO DO 50, HOWEVER, WF REALLY HAVF TO KNOW
A LI FTLF MORE ABOUT: JUST W~+AT IS (;DING TO RE DONE IN
SUEZ CANAL CITIES RECONSTRUCTION THAN WE DC NOW. WE ARE
NiT YET ABLE TO VISIT THESE AREAS AND IT IS DIFFICULT
T," TALK ABOUT .ANY PROJECTS OF THAT SORT SIG,4T UNSEEN.
2. PI]SSIBILITY OF CH'SE BANK. OPENING H.F.PF:
RUCKEFELLER: TOLD ME THAT I?,, HIS PREVIOUS MEETING WITH
St,DAT LAST SEPTEMBER, THE rlRESInENT HAD UNEYPECTEDLY
SUGGESTED CHASE OPENING A r;RANC-; IN CAIRO. HE HAD IN
PAST FEW DAYS SOUNDED OUT APPROPRIATE ISRAELI
OFFICIALS AS TO THEIR REACTION TO ANY SUCH STEP AND HAD FO-'17
T-+EM AGREEABLE. HE INTENDS THEREFORE TO RAISF MATTER AGAI' IN'
HIS MEETING WITH SADAT TODAY AN() ASCERTAIN wHAT PRESIDENT
M~YAVE IN MIND IN TERMS OF TIMING. SUCH ACTION
MTGr]T BF TAKEN IN TWO STAGES: F-IRST, ESTABI ISHMENT OF A
C~HASF REPRESENTATIVE HERE, AND SECOND, AT STIMF LATER
DATE, FORMAL ESTABLISHMENT OF A CoASE BANK IN CAIRO.
ONE OF HIS AIDES THEN REPORTED THAT HEGAZY HAF] INFCIF:MFD
HIM YESTERDAY THAT, PURSUANT TO SADATtS INSTRUCTIONS,
ARRANGEMENTS WOULD SHORTLY BE MADE FOR CHASE TO ACQUIRE
A 4q PERCENT EQUITY INTEREST IN A JOINT CAI40 BANKING
V1-NTURE TO CONSIST OF THE !ATIONAI. RANK OF ;GYPT,
KAISSOUWI'S NFW EGYPTIAN INTERNATIONAL HANK. AND Ci4ASE.
RIPPCKFFELLER THOUGHT THIS WAS ACCEPTABLE.
ROCKEFELLER NOTED THAT AT THw APPRORIATE TIME AN
ANNDL.)NCFMENT WOULD HAVE TO RE MADE. AND THOUGHT THIS
SUOOLD BE AS SOON AS POSSIraLE SINCE THE NEWS IS BOUND
In LF-AK OUT. I SUGGESTED HE DISCUSS TIMING OF ANY SUCH
ANNOUNCEMENT WITH SADAT AND BE GUIDED BY HIS VIF=WS. IN
A`:SWFk TO ROCKEFELLER'S SPECIFIC OUESTIDN, I FXPRESSE D
My PERSONAL VIEW THAN; AN ANNOUNCEMENT A CHASE REPRESENTATI,,
WILL SHORTLY BE ESTABL.ISHEIi HERE.. r. 'ILL BE A rURTHER Pt.US
Ir' OUR FFFORTS TD STRENGTHFN US-EGYPTIAN RELATIONS.
3. SUMFn DISCUSSIONS, ROCKFFELLER ASkED ABOUT
CURRENT STATUS OF SUMED TALKS. ONE OF THE MEMBERS OF
T+4E BECHTEL NEGOTIATING TEAM, DORMAN, HAD APPARENTLY
R,-` IF-ED A CHASE REPRESENTATIVE A FEW DAYS A'-.O. CHASE,
RoCKFFELLER INDICATED, IS c"ONSInEPING PROVIoIN(; THE
EGYPTIAN SIDF WITH SOME. FI?iANCIAL ASSISTANCr ()N THIS
IMPR~ .SII"w
PPUJECT. SINCE THE CHASE PEOPLE APPEARED TO HAVE THE
(I SUSPECT FROM HEGAZY RATHER THAN OfIRMAN) THAT THE PRINCIG i.
OUTSTANDING PROBLEMS WERE VIRTUP1LI.Y SOLVED, I OI.JTLINI D FJJw
T-E GROUP PRESENT STATE OF PLAY. I POINTED OUT BECHTEL TGP'?
H-,D FEEEN TOLD (HERE WAS Nn ONE AVAILABLE TO DISCUSS THE
PSN:c53921 PAGE 02 TCIR:034/14:52Z DTG:O,i?41Z 74
** **** r 0 P S E C R F T *******S CIO'
No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7
 No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7
******* T 0 P S F, C R E T *******S COP-
C- ~NTPACT AN!1 OUTSTANDING ISSUES UNTIL THE SUMF!) B()AR!) MEET`.
L.A.T(-R THIS MONTH AND ORGANIZES ITSELF. AT SAME TIME, E.GYP! IA^:ti
HAD .ASKED BECHTEL TO EXTEN.~ THE CONTRACT W I THflUT ANY SAT ISM- nC T'(!PY
ASSURANCES THAT THE nUTSTANDING ISSUES WOULf` RE ExPEf)ITIOU, v
PF=Sf!LVEr). I UNDERSTOOD THE. BECHTr~L GROUP W^,S NOW IN TOUCH
WITH STEVE BECHTEL, JR., Tt1 OBTAI>?r A HIGH La-VFt, DECISION A,
Ti ,WHETHER TI) ACCEDE, AND r.iI]TFD I HAD RFCOM*MENDED WE URGE
STEVE r?FCHTEL TO BE AS FLEXIBLE AS PUSSIBLF. RfCKFFFL.L.EK
SAIL HE WILL ALSO GET IN TOUCH WITH STEVE BFCHTFL S1P E TIM=-
Tf'MIIRROW AND SUPPORT PROJECCT. HE PLANNED To SUGGEST TO ST`-,,F
BE'CHTEL THAT HE COME. TO CAIRO AT APPROPRIATr- TIE T(l HELP
P -SnLVE ISSUE AND ASKED IF I THr)Ur?HT SADAT f(iI.1L.i1 SEE HIM. T
Nr1TF!' TWAT INITIAL POINT df;' CONTACT OUGHT To RE HECGAIY, BUT i tl r'
HIM I WAS SURE MEETING WIT+a SADAT COULD AND SHUH..JLD ALSO BE
A+:!RANGF().
4. OIL EMBARGO: IN A BRIEF DISCUSSION OF THE URGENCY
(1F LIFTING THE OIL EMBARG+), I POINTED OUT THAT SADAT HAS T?-'r,)
TI-1 PF HPLPFUL. THERE HAVE NEVERTHELESS BFEA, SO'.)E RFCENI? ST ? TFMFNTS
By VARInUS OTHER ARAB STATr:S THAT THEY MIGHT HE DIFFICI-ILT THIS.
P ?INT. I SUGGESTED THAT RoCKF,FFLL.ER MIGHT ;,AY A WORD TO SAf'AT
m,-., THE CRITICAL IMPORTANCE OF THE EARLY LIFTING OF THE OIL M? ARGP
I+:. ('11!R EFFORTS TOWARD WORKING OUT A JUST AND DURABLE MIDDLE
FAST PEACE SETTLEMENT ARE TO BE CONTINUED. I ALSO POINTED L
T,-4AT OUR ABILITY TO, BE OF HELP TO EGYPT IN SOME OF ITS FMO ftM 1 C
PKOPLEMS MUST DEPEND UPON THE ExPEDITIOUS LIFTING t]F THE E t~p;G(1.
I REITERATED THAT SADAT HAS SOUGHT TO BE HE1_PF(.UL' HUT SUGG(?~TFf
Tf-4AT A PEMINf)ER OF THE IMPORTANCE OF THIS ISSUE FROM SOMEO;:K AS
P:~OHINFNT AS QOCKEFELLER WOULD NOT HURT.
9 0
P4N:f53q21 PAGE 03 f.IF 03 TU-R:034/14:5i?Z OTG:U")1?+)7 Fkk 74
No Objection to Declassification in Part 2012/12/18: LOC-HAK-471-6-14-7