Ignoring stern Senatorial warnings against strengthening the United Arab Republic’s “dangerous policy of exterminating Israel,” the Administration here was proceeding today in plans to bolster the UAR’s economy with a massive “package” of assistance.
Included in the “package” are plans for a loan to the UAR, by an international consortium, of $200, 000, 000; the sale to the UAR of a vast quantity of U. S. agricultural surpluses, amounting perhaps to as much as another $100, 000, 000; and the furnishing to the Egyptian Government of large-scale American technical assistance.
The move to warn the United States Government against Egypt’s use of such broad help for the purposes of trying to destroy Israel was spearheaded by Senator Kenneth Keating, New York Republican. In a letter to Secretary of State Dean Rusk, followed by a speech on the floor of the Senate, Mr. Keating demanded that the Administration re-evaluate and clarify its program of aid to President Gamal Abdel Nasser of the UAR. He demanded that the U. S. concentrate, instead, on efforts to bring about a final and lasting peace between Israel and the Arab states.
Mr. Rusk himself has admitted that the U.S.A. “is considering what role it might play” in helping Egypt’s development. He confirmed the fact that “extensive talks” have already been held on the subject, thus acknowledging officially that negotiations for a loan to the UAR have taken place.
While Mr. Rusk’s statement had been specifically linked to the talks concluded here by Dr. Abdel Monem el-Kaissouny, UAR Minister of Economy, who last week obtained two loans totaling only $20, 000, 000, it was pointed out that the deals involving $20, 000, 000 were only token beginnings forming part of the larger plans involving hundreds of millions.
On the Senate floor, Senator Keating demanded positive American action before making commitments to the Cairo Government. The United States, he said, should renew efforts to bring about an Arab-Israeli settlement.
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