State Department Favors Continued American Assistance to Egypt

The Department of State today made known that it favors continued American assistance to Egypt despite that country’s increased expenditures for arms.

James P. Grant, Deputy Assistant Secretary of State for Near Eastern Affairs, said “the Department of State does not believe United States aid contributes significantly to the United Arab Republic’s capacity to acquire armaments nor would withholding assistance detract appreciably from that capacity.” The statement was made in a letter to the Jewish War Veterans which had raised a question about increased American aid to Nasser at a time when Egypt is spending heavily of its own assets for German rocket scientists and Soviet jet bombers.

Mr. Grant said the bulk of American aid was in the form of surplus foodstuffs and the balance comprised of “development loans for specific development projects tied to procurement in the United States.” He made clear that the United States was satisfied that Egypt’s arms purchases from the Soviet Union “are acquired mainly through sales of surplus cotton” which, he said, Egypt has not been able to sell in Western markets.