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State Department Explains Policy of U.S. Loans to Egypt

When the United States makes loans to Egypt, these are used as leverage to bring about a peaceful solution of the Arab-Israel dispute, Phillips Talbot, Assistant Secretary of State for Near Eastern Affairs, declared in answer to a question in the House Foreign Affairs Committee. The statement was made during the hearing on the Administration’s foreign aid program. A transcript of the testimony was released today.

Under questioning by Congressman Leonard Farbstein, New York Democrat, Mr. Talbot defended continued American aid to Nasser despite the Congressional amendment against aid to countries engaged in or preparing for aggression. Mr. Talbot denied that Egyptian forces will very soon be superior to Israel’s, and added that “if there were a transformation of the present situation, then it goes without saying that our policy would also be re-examined.”

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