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State Department Reported Reappraising Its Policy Toward Egypt

High State Department sources today revealed that a profound reappraisal of the American attitude toward Egypt is now going on, in view of Egypt’s arms deal with the Soviet bloc and her increasingly hostile propaganda against the United States.

The revelation was made in connection with a decision taken yesterday by the Senate Appropriations Committee, directing the Administration not to pledge any funds to Egypt for the Aswan Dam project without specific authorization by the Committee. Secretary of State John Foster Dulles said he found this restriction “perfectly reasonable.”

It was indicated here today that a prime reason for Secretary Dulles’ approval of the Senate committee restriction on aid to Egypt is that he wants to tell the Egyptians that reckless and hostile anti-American statements are not without consequences, and that the United States is no longer inclined to submit to Egyptian blackmail. The United States had planned to contribute $54,600,000 to the Aswan Dam project.

Egyptian Ambassador Ahmed Hussein said on his return from Egypt today that his government had decided to accept American help on the Aswan Dam project. He said he was under instructions to reach a firm agreement here as soon as possible.

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