The State Department, reacting to a report from Cairo today revealing that the Egyptian Government has formally asked the United States for $150,000,000 in surplus food — in addition to asking earlier for loans totaling $100,000,000 for industrial projects — indicated that the matter of increased American aid to Egypt was under discussion.
State Department sources said here today that the United States Government does not believe that increased American assistance to Egypt, now under consideration, would facilitate in any way the diversion of Egypt’s domestic budget funds to purchase additional Soviet military jet planes and other arms.
Commenting on reports that new American aid for Egypt is under consideration, Rep. Farbstein said he opposes the extension of the surplus commodity contract period beyond six months. Egypt’s request for $150,000,000 worth of surplus food is for the fiscal year starting July 1. Cairo has urged Washington to speed action on aid requests in view of the expressed American desire to improve American-Egyptian relations and the forthcoming visit of Secretary of State Dean Rusk to Cairo.
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