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Proposal That U.S. Give Egypt $55 Million to Clear Canal Termed Premature

A State Department spokesman today termed “premature” a proposal by Rep. William S. Moorehead, Pennsylvania Democrat, to authorize President Nixon to give Egypt $55 million to help clear the Suez Canal. The spokesman added, however, that there was “no reason” why the United States would not participate in financing such a project. He noted that “if and when” an agreement is reached, no financial problems were expected in that “enough countries are interested.” Moorehead announced last Friday that he would introduce his bill, House Resolution 8775, as an amendment to the Foreign Aid Bill when it reaches the floor at the end of this month. The resolution is cosponsored by 12 members of the House including three members of the powerful House Foreign Affairs Committee–Reps. Lee H. Hamilton, Democrat of Indiana; Seymour Halpern, Democrat of New York and Bill Bloomfeld, Republican of Michigan. A spokesman for Moorehead said that such aid, if accepted, “would be a greater buffer than any Phantoms or Skyhawks.”

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