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August 15, 1956

Ministry for State Security, Main Department II, ‘Egypt’

This document was made possible with support from The Woodrow Wilson International Center for Scholars

[Ministerium für Staatssicherheit]

Main Department II

Berlin, 13 August 1956

E g y p t

I. Relations of the GDR with the Republic of Egypt

1. The beginning of relations between the GDR and the Republic of Egypt

The first official relations between the GDR and the Republic of Egypt were established on 7 May 1953 with the signing of a Trade and Payments Agreement. As a consequence of the latter, in early 1954 a representation of the Ministry for Foreign and Intra-German Trade was established in Cairo.

In March of 1954 the first GDR Industrial Fair was held in Cairo. This exhibit was of major political importance, as it demonstrated for the first time in the Middle East that there exists an industrially highly developed and accomplished GDR.

In November 1955 a new Trade and Payments Agreements was concluded between the GDR and the Republic of Egypt, at the same time a long-term trade agreement was signed. The importance of this long-term trade agreement, which is initially valid for three years, consists in the Egyptian government having for the first time committed itself to the GDR to purchase a certain minimum of goods. For now, there is an annual amount of 3 million Egyptian pounds (about 20 million German Marks) planned, which is supposed to double at a later point.

During the trade negotiations in November 1955 letters were exchanged between the heads of delegations, stipulating the transfer of consular rights and functions in the context of trade transactions as soon as the Egyptian Trade Representation has been established in Berlin.

Since the end of 1955, the relations between the GDR and the Republic of Egypt have increasingly developed and became more solid. The development of relations is facilitated by the consequent adherence of the Egyptian government to the decisions of the Bandung Conference, as well as by the efforts of the Egyptian government to tend more and more towards the socialist states and cooperate with them. The secretary Dr. Mustafa al-Samaah from the delegation of the Liberation Province[1], that visited the GDR in late July and early August [of 1956], stated that it is the task of this delegation to make itself familiar with the achievements of the GDR and the other socialist states; followed by the drafting of proposals where to begin respectively expand the cooperation of Republic with these states - because Republic is intending, in the interest of preserving and strengthening its national independence, to separate itself ever more from the imperialist states and expand instead the relations with the socialist states.

2. The development of political relations

When it became known in late 1955 that the Egyptian government had given its approval to the exchange of official Trade Representations with certain consular rights between the GDR and Republic, there immediately began a massive pressure on Republic by the Bonn government.

The West German Ambassador in Cairo, Dr. [Walther] Becker, was demonstratively recalled to Bonn temporarily. Foreign Minister [Heinrich von] Brentano declared in December of 1955 that West Germany will sever diplomatic relations with those states that will simultaneously establish diplomatic relations with the GDR.

As a result, Egyptian Prime Minister Nasser told a journalist of the “Frankfurter Allgemeine Zeitung” that currently Republic does not plan in any way the establishment of diplomatic or consular relations with the GDR. Republic would be exclusively interested in economic exchange with the GDR. (See “Der Tag” from 16 December 1955). 

As a result of the West German pressure, the Egyptian government has delayed the opening of its Trade Representation in the GDR until this very day. However, it was planned that in late July 1956 a pre-delegation, headed by the Director General in the Egyptian Foreign Ministry, Mustafa Hassan, will arrive in Berlin with the task of establishing the Egyptian Trade Representation. In July of 1956 Mustafa Hassan was in England and Switzerland. After his return to Egypt, he stated to Trade Councillor Enkelmann that he had planned a stay in Berlin. But in light of the tense situation due to the nationalization of the Suez Canal he had returned straight to Cairo. After the end of his vacation (probably by mid-September 1956) he will do his planned visit to the GDR and discuss the subject of establishing the Egyptian Trade Representation in Berlin there.

Due to the growing reports in March 1956 and the following period regarding an upcoming recognition of Israel and the establishment of diplomatic relations by West Germany, Prime Minister Nasser declared in early April of 1956 according to a DPA[Deutsche Presseagentur; the West German News Agency] report from 3 April 1956: In case the federal government [in Bonn] will recognize Israel and establish diplomatic relations with it, Egypt will do the same pertaining to the GDR. Nasser added that Republic is still of the opinion that reunification of the divided German people will contribute to the political, economic, and social stability of Central Europe and thus further the peace in Europe and even the entire world. Furthermore Nasser stated: “So far we have rejected it to recognize the GDR and to establish diplomatic relations with her. However, the recognition of Israel by the Federal Republic of Germany would eliminate our hesitations, because it would represent an unfriendly act vis-a-vis the Arab nations” (see “Süddeutsche Zeitung”, 4 April 1956).

In mid-May 1956 the then Minister for Islamic Affairs, Anwar al-Sadat, visited West Germany and West Berlin. At his arrival in West Berlin, he stated that Egypt does not consider to recognize the GDR. Responding to a question by a correspondent whether Egypt will recognize the GDR, he said “No”. (See “Frankfurter Rundschau” of 16 May 1956).

During the visit of the GDR government delegation to the Republic of Egypt in May 1956, a meeting took place between the Deputy Chairman of the GDR Council of Ministers and Minister for Foreign Trade and Intra-German Trade, Heinrich Rau, with the Prime Minister of the Republic of Egypt, Gamal Abdel Nasser. The main topic of this conversation was the question the Egypt side had raised already at the beginning of this year: “Does the recognition of the GDR signify a deepening of the division of Germany”? The answer to this question had been given in a letter by Minister Rau. During the talk, Prime Minister Nasser stated that the Egyptian government is recognizing the argumentation of the GDR and will consider it as the basis of its approach regarding the issue of the recognition of the GDR. Nasser declared that the recognition of the GDR will come when the most favorable moment for this step has arrived. He referred here to the recognition of the People’s Republic of China and that he has rejected four weeks prior an invitation to visit the People’s Republic of China.

(This report about the meeting between Minister Rau and Prime Minister Nasser regarding the Germany Question is only based on an oral information by delegation member [Paul] Markowski, since the Ministry for Foreign Affairs has currently neither a copy of the letter from Minister Rau to Hassan Ibrahim nor the protocols and reports of the Rau Delegation).

At the Press Conference in Leipzig on 31 July 1956, the Head of the Liberation Province, Major Magdi Hassanein, stated his conviction that the time is not far ahead when Egypt will recognize the GDR.

In contrast to these statements concerning a recognition of the GDR and the establishment of diplomatic relations, Egypt is falling short and using delaying tactics pertaining to practical steps to strengthen the political relationship with the GDR (see establishment of a Trade Representation in Berlin). However, this does not allow for drawing the conclusion that Egypt is not interested in a normalization of political relations. Due to its consequent rejection of joining imperialist military alliances and its refusal to sign agreements with oppressing conditions, and now in particular because of the nationalization of the Suez Canal Company, Egypt is constantly subjected to massive pressure by the imperialist powers. So, currently Egypt already has to use all its energy to resist this pressure, which is exerted by the imperialists only because of the measures implemented by the Egyptian government on the national level.

The conflicts existing between Egypt and the Western powers are leading to a growing tilt towards, and deepening of cooperation, with the socialist countries.

Depending on the outcome of he conflict over the Suez Canal, it is to be expected that Egypt will first wait for tensions to calm down before it is undertaking steps towards a recognition of the GDR. Or, in case of a further aggravation of the situation, it will act very quickly with regard to the recognition because there is no longer a fear of additional counter-measures.

The possibilities of economic pressure are evident from the following chart concerning foreign trade relations between Egypt and the Western powers as well with the socialist world market:

 

Exports

Exports

England, West Germany, and United States to Egypt

by socialist countries to Egypt: USSR, Poland, Romania, Hungary, Bulgaria, China and GDR, Czechoslovakia

 

 

1955

1955

64,616,000 Egyptian Pounds 

12,453,000 Egyptian Pounds

 

 

January to May 1956 

January to May 1956

35,633,000 Egyptian Pounds

10,076,000 Egyptian Pounds

 

 

Imports

Imports

England, West Germany, and United States from Egypt

by socialist countries from Egypt: USSR, Poland, Czechoslovakia, Romania, Hungary, Bulgaria, China, and GDR

 

 

1955

1955

24,697,000 Egyptian Pounds

36,930,000 Egyptian Pounds

 

 

January to May 1956 

January to May 1956

,833,000 Egyptian Pounds

27,980,000 Egyptian Pounds

 

3. The economic relations between the GDR and the Republic of Egypt

The trade relations between the GDR and the Republic of Egypt have developed as follows, based on the Trade and Payments Agreements from 1953 and 1955 and the long-term Trade agreement of 1955:

Exports

1952

1,633,000 Egyptian Pounds (sugar)

1953

58,000 Egyptian Pounds

1954

492,000 Egyptian Pounds

19555

872,000 Egyptian Pounds

1956 January to May

1,491,000 Egyptian Pounds

Imports

1952

92,000 Egyptian Pounds

1953

1,083,000 Egyptian Pounds

1954

733,000 Egyptian Pounds

19555

1,408,000 Egyptian Pounds

1956 January to May

2,946,000 Egyptian Pounds

Even though since the existence of contractual trade relations the trade volume has constantly increased, this is still not sufficient within the overall framework of Egyptian foreign trade to serve as an effective support for the normalization of political relations between the GDR and the Republic of Egypt.

In the first five months of this year the annual target for exports was achieved by 35 percent.

In contrast, until the end of May 1956 only 56 percent of targeted [Egyptian] orders could be secured. The reasons for the bad order situation are first the insufficient commercial activities of our foreign trade companies, and second the limitations in the granting of import licenses by the Egyptian side.

As long as our foreign trade companies are unable to fulfill orders exactly and in time, there is not much sense in mainly making the limitations in granting import licenses responsible for the unsatisfactory development of trade relations. Understandably, the Egyptian government will assign the existing import licenses to those where it has the guarantee for diligent and seamless delivery.

If one would just look at the numbers of trade delegations, then the trade relations between the GDR and the Republic of Egypt would already have an enormous scale. Unfortunately it has to be noted, though, that after the return of delegations the initiated connections with the Egyptian partners are breaking off again to a large extent and the promised offers are sinking into oblivion.

The result of such work is that the Egyptian side is very unhappy with the work of a large part of the delegations after their departure and is thus also losing confidence in our foreign trade organs. Of major importance for the development of trade relations between the Republic of Egypt and the GDR, as well as with the other socialist states, is the work of the GDR planning experts in Cairo. Since these planning experts are involved in drafting foreign trade directives, they have the opportunity to suggest and further the imports of certain materials and equipment by Egypt from socialist countries.

The hesitant granting of licenses for imports from socialist countries is an expression of resistance by certain circles in Egypt, who are not pleased with the current policy of the Egyptian government to expand relations with the socialist countries.

4. The cultural relations between the GDR and the Republic of Egypt

The cultural relations between the GDR and the Republic of Egypt are still insufficient. The reason behind this: So far there has been no success in establishing a firm contact between the cultural institutions in charge in the GDR and the Republic of Egypt.

A beginning was made with the negotiations between the Director of the Berlin Theater and Concert Agency Ltd., Erwin Luck, and the concert agency Lumbroso. The latter is organizing in Egypt appearances by a soloist ensemble from the GDR, which will travel to Damascus at the occasion of the International Fair. Without any results due to the strong hesitancy of the Egyptian side, have been talks about the development of cultural relations with official personalities, like the Director of the Cairo Opera, Abdel Rahman Sedky, who is at the same time working at the Ministry for National Orientation.

The cooperation between the German Democratic Broadcast and the Egyptian Radio was initiated when a delegation headed by the Director of Radio GDR, Kleinert, had visited Egypt in Juli/August 1956. It accomplished a good foundation with the signing of a protocol of cooperation in the field of radio broadcasting.  

In the area of scientific cooperation there does exist a contact already insofar, as already last year German Egyptologists had been invited by the Egyptian Institute for Antiquities to visit Egypt. As a result of this invitation, at the end of this year Professor Dr. Hintze and Dr. [Otto] Firchow from the Academy of Sciences will travel to Egypt for a study visit.

In the field of health care a direct contact has been established through the visit of Egyptian Minister of Health, Nureddin al Tarraf, in May 1956 to the Minister of Health of the GDR, Luitpold Steidle. Future cooperation was outlined in an agreement between both ministers on 27 May 1956.

Questions of collaboration in the areas of training of Egyptian specialist workers, student exchanges, and the exchanges of visiting lecturers will be discussed with the Under State Secretary in the Ministry of Education, Dr. Naguib Hasim, who has been invited by the Ministry of Education to visit the GDR. A date for this visit is still to be determined.

5. The sports relations between the GDR and the Republic of Egypt

Since the end of 1955 there does exist a good connection between the [GDR] State Committee for Body Culture and Sport and the National Olympic Committee of the Republic of Egypt. Thus it was possible that sports relations between both countries have so much increased in scope since the beginning of 1956. (Participation in the [cycling] Tour of Egypt in January 1956, matches of a GDR [field] hockey team in February 1956, preparation of the Egyptian Peace Race [cycling] team in the GDR training camp, fights by the Egyptian boxing team in June 1956, participation of 110 Egyptian athletes in the II. German Gymnastics and Sports Festival in Leipzig, delegation of a rowing coach to Egypt).

6. The work of the GDR Trade Representations in the Republic of Egypt

The remarkable  efforts by the Trade Representation to improve and expand the trade relations between the GDR and the Republic of Egypt are seriously hampered by the irresponsible working methods of many DIA[“Deutscher Innen- und Außenhandel”, German Domestic and Foreign Trade, state-owned GDR trade companies]. Although so far there is no employee from the Ministry for Foreign Affairs working in the Trade Representation (notwithstanding the work of a colleague at the end of 1955/beginning of 1956), the Trade Representation has shown initiative in opening up and developing relations in the fields of culture and sports, as well as in the implementation of foreign policy assignments. It has to be noted, however, that the main task of the employees of the Trade Representation does consist in fulfilling the trade policy assignments; therefore tasks regarding the development of other relations are not on the forefront.

II. The domestic policy situation in Egypt

Over the course of the last year President Nasser has gained ever more in popularity.

All the successes achieved, even in the arena of foreign policy, were directly associated with Nasser. The hate accumulated in the past against foreign rule has all directed all sympathies of the population towards those, who have initiated the process to shake off this foreign rule and at the same time get rid of their own feudalist oppressors. These sympathies for Nasser among the population are constantly growing, although for the largest part of the people there are hardly any noticeable improvements in living conditions. The following main reasons have contributed towards expanding Nassers base:

1. The stridency Nasser is applying against the Western powers;

2. The cooperation of Egypt with all Arab peoples what has resulted in a strengthening of the Arab League under Nasser’s leadership;

3. The emphasis of Egypt’s national interests in government-directed agitation, especially in the context of the differences with Israel;

4. Through the growing policy of friendship with the Soviet Union, the People’s Republic of China, and the people’s democracies, which is striking a special chord with the broad masses;

5. Through the policy of active coexistence to preserve world peace;

6. Through the very widely propagated industrialization and the corresponding improvement of the population’s living conditions. (State employees in charge of planning entertain versions to built up with all force the industry, and especially the heavy industry, at the expense of the living conditions of the population; because according to this opinion the people are standing behind Nasser and such measures will be understood by the population);

7. Through the social-policy measures to build up the education system, residential construction, health facilities, medical stations to cure bilharzia [Schistosomiasis, a disease caused by parasitic worms] and tuberculosis;

8. Through relatively progressive equal rights for women in the Islamic context.

Like the previous one, the government reshuffled after the election of Gamal Abdel Nasser as President of the Republic of Egypt on 23 July 1956 has to be considered as a bourgeois-democratic type that is meeting the demands of the people to particular extent. An organized relationship between the government and the people’s masses is still in the making. It is getting established by mass assemblies where representatives of the government speak, by agitation means like banners and the press, and especially by establishing trade unions, women and youth organizations, cooperatives, et cetera. In the current developments of Egypt the leading force is the national bourgeoisie.

The strongest group in this regard are the military officer cadres within the government. These officers are all coming from the bourgeoisie but they are not of any significant wealth. The economic policy they advocate is defined by establishing agricultural, trade and consumption cooperatives (more than 3600) and by building semi-state and state factories and trade companies (foreign and domestic trade), while at he same time furthering private capitalist initiatives. Economic plans are drafted by the state.

The representatives of such concepts in the government are:

Gamal Abdel Nasser

- President

Mahmud el-Baghdadi

- Minister for Urban and Rural Affairs and State Minister for Planning

Meguid Mohieddin

- Minister of Interior

Mahmud el-Shafei

- Minister for Sozialwesen and Labor

Major Hakim Amer

- Minister of War

Kamal el-Din Hussein

- Minister for Education

They are supported by:

Abu Nosseir

- Minister for Trade

Sayed Marei

- State Minister for Agricultural Reform

and likely by Dr. Aziz Sedky

- Minister for Industry

This leading cadre has the support of broad swaths of the bourgeoisie and has great sympathies with the fellahs [farmers and agricultural laborers] and the workers.

Within the bourgeoisie there are shifting and adversarial forces. The former are afraid of a radical change of the domestic situation, while the latter are sympathizing with the Western powers.

Also in the government itself the different factions are represented.

Minister of Finance Dr. [Abdul Moneim el-] Kaissouny is a supporter of a free market economy and probably has ties with the Western powers. Foreign Minister Dr. [Mahmoud] Fawzi is extremely reluctant regarding the development of relations with the socialist camp. The leading positions within his Ministry were recently filled with military people.

A support of the efforts to achieve the recognition of the GDR is possible with the progressive representatives of the national bourgeoisie, especially regarding the members of the former Revolutionary Council. A strengthening of this group in the interest of increasing the influence of the GDR can be achieved:

1. through an expansion of economic relations, and

2. through a sharing of experiences the GDR has acquired during the build-up of socialism, especially in the areas of education, health care, culture, et cetera.

A granting of such support which, as the delegation from the Liberation Province has demonstrated, is desired by progressive Egyptian circles. It will contribute towards the strengthening of these progressive circles and thus help them in gaining the upper hand in the conflicts that are occurring with the reactionary forces.

III. The joint interests and points of contact between the GDR and the Republic of Egypt

1. The consequent adherence to, and implementation of, the decisions of Bandung.

2. Rejection of imperialist war alliances

3. Rejection of so-called reparation claims by Israel towards the GDR

4. Support for the nationalization of the Suez Canal Company by Egypt

5. Support for the struggle of the peoples against imperialism and colonialism, and for national independence

6. Favorable additions to the economic opportunities of both sides.

Issues of dispute, which might negatively effect the development of relations between the GDR and the Republic of Egypt, have not surfaced so far.

IV. The influence of the fraternal socialist countries in the Republic of Egypt

The position of the Soviet Union and the people’s democracy countries regarding the nationalization of the Suez Canal Company, as well as during the subsequent tense international situation, has extraordinarily increased the reputation of these countries in Egypt as well as in the entire Arab region. There is a conviction in wide-ranging circles that it is thanks to the existence of the socialist camp and its support for Egypt's efforts that the Western powers did not dare an immediate attack on Egypt.

The constant support of Egypt in its struggle for securing and strengthening national independence, in order to preserve the peace in the Middle East and standing against the formation of imperialist military alliances in this region - as well as the arms deliveries by the Soviet Union and Czechoslovakia to Egypt and the purchase of large amounts of cotton -, have solidified in particular the influence of the Soviet Union and the People’s Republic of China but also of the other people’s democracy countries.

In its foreign policy, Egypt has recently adopted a position based on popular opinion and looking for closer cooperation with the Soviet Union. The strengthening of the influence of the socialist states in Egypt is also evident in the recognition of the People’s Republic of China and Albania and the establishment of diplomatic relations wit these countries.

An indication for Egypt's positions towards the socialist states is also the signing of an agreement with the Soviet Union pertaining to support for the use of nuclear energy, while an American offer in this regard was rejected.

It is also characteristic for the political influence of the socialist states in Egypt that Nasser will pay an official visit first to several socialist states, before he is going to visit such countries like England and the United States.

Though the socialist states are also already enjoying a significant political influence in Egypt, one may not overlook that e.g. the Soviet Union, Poland, Czechoslovakia, Romania, Hungary, Bulgaria, China, and the GDR have exported combined in 1955 goods only in the value of 12,453,000 Egyptian Pounds to Egypt - while England, West Germany, and the United States have together exported goods for 64,616,000 Egyptian Pounds.

5. The influence of West Germany in Egypt

Regarding trade with Egypt, West Germany is in the third position. Trade has developed in recent years as follows:

West German Exports:

1954

17,772,000 Egyptian Pounds

1955

19,180,000 Egyptian Pounds

1956 January to May

8,020,000 Egyptian Pounds

West German Imports:

1954

11,391,000 Egyptian Pounds

1955

7,783,000 Egyptian Pounds

1956 January to May

2,573,000 Egyptian Pounds

As a result of the West German trade policy to export as much as possible but to import just a little, Egypt is heavily indebted to West Germany. This led to the Egyptian government issuing an import ban for West German goods. Subsequent negotiations held from November 1955 to January 1956 resulted eventually in an agreement over the further terms of trade between West Germany and Egypt as well as about how to deal with the debts of Egypt.

Regarding the advance of West Germany into the Egyptian market, it is noteworthy that this is occurring with active support of the United States, which in turn is operating in Egypt with the support of West German companies. In the years before the GDR has become active in Egypt, West Germany has managed to establish in these countries a strong influence with the support of the United States and by using Germany’s good reputation.

In spite of West Germany’s positions on Israel, as well as the West German trade policy vis-a-vis Egypt, overshadowing the relationship between West Germany and Egypt once in a while, these complications have so far not yet resulted in a significant weakening of West Germany’s positions in Egypt. It remains to be seen to what extent West Germany’s position regarding the nationalization of the Suez Canal Company by Egypt will affect West Germany’s position in Egypt. However, it must be noted that today it is no longer possible for West Germany to operate in Egypt as Germany’s sole representative. It is noteworthy that recently there have been ever more [Egyptian press] reports about the GDR, which are to large extent of a positive nature and characterized the GDR as democratic Germany.

Whether West Germany will sever economic relations with Egypt, if it recognizes the GDR and establishes diplomatic relations with her, cannot be said with any certainty. In November 1955 it had become known that trade representations with consular rights had been established between the GDR and the Republic of Egypt and functions were supposed to be exchanged within the framework of the trade representations: Back then the Bonn government had threatened to sever all relations with Egypt or any other state that would recognize the GDR. However, soon afterwards [the Bonn government] declared that it would interpret a recognition of the GDR as an unfriendly act. This change is without doubt a result of [intervening] West German economic circles who do not want to cease, [just] because of the interests of the Bonn government, one of their export markets and do want to lose a trading partner.

Therefore one can hardly expect a severance of economic relations by West Germany if Egypt recognizes the GDR. Still, the task for the GDR does remain to increase, together with the other socialist states, as fast and as far as possible its share within Egypt's global trade. Thus Egypt would not have to refrain from the issue of recognizing the GDR out of being afraid of boycott threats, because the respective compensation for the potential loss of trade relations with West Germany is lacking. 

VI. The influence of imperialist states in Egypt (with the exception of West Germany)

England and the United States have the largest economic influence on Egypt.

The volume of trade relations between those states and Egypt has developed in recent years as follows:

England

Export

Import

1954

20,552,000 Egyptian Pounds

14,317,000 Egyptian Pounds

1955

23,588,000 Egyptian Pounds

7,871,000 Egyptian Pounds

1956 January-May

12,261,000 Egyptian Pounds

4,080,000 Egyptian Pounds

 

United States

Export

Import

1954

7,830,000 Egyptian Pounds

6,389,000 Egyptian Pounds

1955

21,848,000 Egyptian Pounds

9,043,000 Egyptian Pounds

1956 January-May

15,352,000 Egyptian Pounds

2,180,000 Egyptian Pounds

Despite the sharp contradictions between the United States and England on the one and Egypt on the other hand, both [U.S. and England] have been able to further increase their exports to Egypt. The expansion of their exports to Egypt has been made easy because the granting of licenses has so far been handled by the Ministry of Finances. As it is known, its Minister el-Kaissouny is in favor of a closer tilt of Egypt to the West. While on the one hand the United States and England are constantly expanding their exports to Egypt, there is a tendency to observe a decline regarding their imports from Egypt. The reason for this is that especially England has curbed its cotton imports from Egypt last year. With the economic problems caused for Egypt as a result, England hoped to exert pressure on Egypt in order to achieve a change in Egypt's foreign policy positions.

The imperialist foreign trade policy of the Western powers (more exports than imports) is watched by the Egyptian government with great displeasure, because due to Egyptian indebtedness resulting from such a foreign trade policy political pressure can be exerted on Egypt. Therefore the Egyptian government is ever more tilting towards such countries which are [illegible].

In order to accelerate this development, which can have the consequence of an economic and thus also political decline of influence by the Western powers, it is necessary that the socialist states are improving as fast as possible their economic relations with Egypt.

England has shares in the Egyptian oil industry. With Egypt's credit of over 100 million Pound Sterling deposited in an account with a bank in London, England enjoys a leverage vis-a-vis Egypt. As it is known, this credit account, which according to an agreement from 1955 was supposed to be disbursed to Egypt in annual installments, was blocked again in the context of the nationalization of the Suez Canal Company.

Though the United States and England have the option to flex their muscles in Egypt by capitalizing on their extensive economic relations in Egypt, they are however no longer in a position to force the Egyptian government into a change of its policy on fundamental issues.

VII. Proposals for the further development of relations between the GDR and the Republic of Egypt

1. An attempt has to be made to get the GDR invited to the conference proposed by Egypt regarding the guarantee of free passage through the Suez Canal, since Germany was a signatory power to the convention of 1888[2] and the GDR is directly interested in navigation to the Far East. This desire of the GDR should be transmitted to the Egyptian government through the Trade Representation of the GDR in Cairo.

2. The questions pertaining to the establishment of a Trade Representation of the Republic of Egypt in Berlin, as well as the exercise of consular and diplomatic rights by the The Representations of the GDR and the Republic of Egypt are to cleared by the Ministry for Foreign Affairs on the basis of reciprocity with the Director General in the Egyptian Foreign Minister, Mustafa Hassan.

3. As soon as the dates for the visit of several socialist states by President Nasser have been finalized, it has to be explored via the Trade Representation of the GDR in Cairo whether President Nasser will accept the invitation to a visit of the GDR issued by Prime Minister [Otto] Grotewohl via the Governor of Cairo, El Bendari.

4. Trade relations with Egypt are to be reviewed with the objectives

  • to significantly increase the volume
  • to possibly grant long-term credits
  • to shorten the delivery time

5. It has to be examined to what extent the GDR can provide technical support to the Republic of Egypt regarding the diversion of water from the Mediterranean Sea to the area near Alamein in order to create an artificial lake and build a related hydroelectric power plant.

6. The Ministry for Education of the GDR has invited the Under State Secretary in the Ministry for Education of the Republic of Egypt, Naguib Hashim. Under State Secretary Hashim has already accepted the invitation. However, the approval of the visit by the Egyptian government is still standing out. During the visit by Under State Secretary Hashim it has to be attempted to conclude a Cultural Agreement between the GDR and the Republic of Egypt. Already now a draft for this Cultural Agreement has to be finalized by the Ministry for Culture. During talks with Under State Secretary Hashim by the GDR institutions in charge, as far as possible final agreements have to be concluded regarding the subjects of student exchanges, training of Egyptian specialist workers and the exchange of guest lecturers.

7. The Minister of Finance of the GDR has to invite the Minister of Finance of the Republic of Egypt, Dr. el-Kaissouny, and his wife to a visit of the GDR.

8. The director of the artistic ensemble, which will travel to Egypt after their performances in Syria and Lebanon, has to reach agreement with the respective Egyptian institutions regarding the development of cultural relations in 1957.

9. The State Secretariat for University Affairs has to find out what opportunities do exist fore the participation of scientists from the GDR in excavations in Egypt. In such cases the excavated subjects are supposed to remain in Egypt.

10. The Ministry for Culture has to review what subjects of ancient Egyptian culture, which are in museums of the GDR, can be returned to Egypt.

11. In order to make the GDR better known in Egypt, from 1 January 1957 the Trade Representation of the GDR in Egypt has to publish a Bulletin. At the same time, the cooperation with the Egyptian press has to become more systematic in order to get articles about the GDR published regularly.

 

VIII. There is a precondition for the initiation and development of relations between the GDR and the Republic of Egypt in the areas of culture, science, sports, and the press, namely the immediate delegation of members of the Ministry for Foreign Affairs to the Trade Representation of the GDR in the Republic of Egypt. Employees are needed here for the following positions:

a) a Deputy for the Head of the Trade Representation (must have the qualification of an ambassador)

b) a consular employee (must have long-time experience in consular work)

c) a press analyst (must have already experiences in this field)

d) a cultural analyst (must have special knowledge and, if possible, has to be familiar with the Arabic culture).

 

[1] Translator’s note: Egypt Western province (Tahrir Province) at the Eastern edge of the Sahara desert near the border with Libya, declared in 1953 in a desert area over about 500,000 hectares. It was supposed to be irrigated, populated, and cultivated.

[2] Translator’s note: The Convention of Constantinople,signed by the United Kingdom, Germany, Austria-Hungary, Spain, France, Italy, the Netherlands, the Russian Empire and the Ottoman Empire on 29 October 1888, regulated the use of the Suez Canal.

The economic relations between the GDR and the Republic of Egypt are presented, starting with the trade agreement signed on May 7, 1953, and the exchange of consular representation. Political relations between the countries were hindered, according to the report, by pressure from the FRG on Egypt and the question of whether recognizing the GDR meant creating a deeper split between the FRG and the GDR. The report also mentions problems in meeting the export and import plans set forth in the trade agreement, including unpunctuality on the side of the GDR’s trade missions. The report states that Nasser enjoys great popularity in his country as a result of his position towards the West, social politics within the country, cooperation with other Arab countries and improvements in the industrial sector. This is followed by a detailed description of Egypt’s political situation and a proposition to extend political and economic cooperation while trying to reduce the influence of the West. Finally, the report recommends continued rejection of Israel's demands for compensation.


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Translated by Bernd Schaefer.

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