JERUSALEM (Oct. 19)
Concern was expressed among Israeli sources here today over indications that the United States and France again were preparing to bail out Egyptian President Nasser whose fortunes appeared to have sunk to rock bottom in recent months.
Reports from Paris that the French Government was planning to extend a $30,000,000 credit to the Nasser regime were viewed here as bolstering Nasser’s prestige. Most of the credit reportedly will be used to buy jet cargo planes which will do little to solve Egypt’s current economic crisis but such a demonstration of French support will, experts here said, most certainly be used for Egyptian propaganda purposes.
United States indications of plans to resume large-scale grants of surplus commodities, however, were viewed here as direct assistance to Nasser’s economy. What particularly concerned Israelis here were reports that the proposed fresh United States aid stems from a belief in Washington that Nasser is the most stable leader in the “neutralist” camp.
(France and Egypt today announced in Paris that they will cooperate more closely in the cultural field and in aid to developing nations. A joint communique issued at the end of a five-day visit by Egyptian Vice-President Marshal Abdel Hakim Amer said it “marked a new and important stage in the development of relations between France and Egypt.”)