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West Germany to Use Unofficial Scheme to Aid Egypt Economy

West Germany has undertaken a “behind-the-scenes” method for continuing economic aid to Egypt, which the Bonn Government had announced recently it would halt, the Sunday Telegraph reported here today from Bonn. According to the newspaper, German aid would continue through industrial loans to be extended to Egypt by the Hermes Insurance Organization, instead of directly from the Government. In return, the Bonn dispatch stated, Egypt has promised not to extend recognition to Communist East Germany, and not to confiscate West German property in Egypt.

Other dispatches, received here today from Cairo, reported that Egypt has agreed not to recognize East Germany for fear that, if it did, about 400 West German rocket and jet aircraft scientists, now working in Egypt on sophisticated weapons aimed ultimately for war against Israel, might leave Egypt.