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State Dept. Studies Whether Egypt Violated Aid Pact with Washington

State Department officials said today that the question of Egyptian diversion of its rice crop by shipments of Communist China and Cuba at a time when Egypt was receiving United States food assistance was under study by the United States Government, although a determination of violation by Egypt of its aid agreement with the U.S. has not yet been made.

It has been learned that Egypt exported rice in 1964 but authorities here said Egypt may not be precluded from selling rice to Cuba or Red China under the terms of the food agreement with the United States. The whole matter, however, remains under study by the State Department, the Agency for International Development and the Department of Agriculture.

A State Department spokesman meanwhile announced that reports that the United States had approved the final $37,000,000 in surplus food for Egypt under present agreements were incorrect and that the matter was still under consideration. A determination will be made by the President. The $37,000,000 in additional food has to be approved by the end of this month if it is to be included under previous authorizations.

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