Monday, Jul. 02, 1956

Visitor Bearing Gifts

In the audience watching Nasser's parade of military power, a burly, heavy-faced man in a white suit smiled contentedly and ran a comb through his mop of greying hair. Frozen-Faced Molotov's successor as Soviet Foreign Minister proved a man of many mobile impressions (see cuts). A year ago Dmitry Shepilov came to Cairo as editor of Pravda; a few months later came Nasser's arms deal with the Communists, which set Nasser up in business as a man no longer dependent on the West alone. Now, as Foreign Minister, Shepilov was, back to inspect his handiwork. This time he also came bearing gifts, or the offer of gifts. Shepilov hoped to wean Nasser from his bargain with U.S., Britain and the World Bank to finance the High Dam at Aswan.

But Egyptians appeared to be of two minds about the beaming Shepilov, a past master at public relations who even managed to get himself photographed tossing one of Nasser's young sons in the air. They seemed a trifle annoyed at the enthusiastic applause he got from ordinary citizens, a trifle embarrassed to find him the only Foreign Minister present--when they invited him, he was still only Pravda's editor. But Nasser himself found time in the week's hectic schedule to spend long hours with him in earnest talk. As the talks went on, Western embassies began to get carefully planted "leaks" on the generous terms of Shepilov's offers.

Magic Lamp. The dam, a dramatic project that will irrigate 2,000,000 acres of desert, is estimated to cost $1.3 billion over a period of ten years. The U.S. has offered to grant $56 million outright and Britain another $14 million, for a start. Further grants have been promised, but cannot be guaranteed because the U.S. cannot commit Congress more than a year in advance. A major chunk is to come in the form of $200 million loans from the World Bank. Though most of the details of financing were settled months ago, there have been mysterious delays, which Nasser blames on the U.S.

The leaked reports hinted at a Shepilov offer to supply the whole amount, on terms variously reported as 3%, 2%, or no interest at all. "He gave us a magic lamp, and invited Nasser to rub it and make a wish," said one awed Nasser aide.

In the end, the final communique was full of talk of mutual regard, but the dam was not mentioned. Suspicion is that Nasser recognizes that acceptance of a Russian loan would give Soviet Russia a decisive and unwelcome voice in Egypt's economy, but is not above trying to use Shepilov to pressure the U.S.

Waiting Game. Another Nasser caller last week was World Bank President Eugene Black, who flew in to Cairo. Reportedly, Nasser told Black that he still preferred to accept the West's offer, and asked him to urge speed on the State Department, which has been holding things up since March--while it mulls details and makes up its mind about Nasser's intentions in the Middle East. In August, Nasser will go to Moscow on a state visit. If by then the U.S. and Britain have not settled with him, they may find that Nasser has picked up Shepilov's offer instead.

As Russia's new Foreign Minister left Cairo, he shook hands with Egyptian Foreign Minister Dr. Mahmoud Fawzi, asked: "How long does it take to become a good diplomat?" Replied Fawzi: "I don't think you need any lessons."

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