SUEZ CANAL DISPUTE

Press, Volume XC, Issue 27400, 13 July 1954, Page 11

SUEZ CANAL DISPUTE

Britain’s New Proposals (N.Z. Press Association—Copyright) (Rec. 8 p.m.) CAIRO, July 12. The Prime Minister of Egypt (Lieu-tenant-Colonel Gamal Nasser) yesterday discussed with his chief advisers Britain’s latest proposals for settlement of the Suez Canal dispute. They were handed to him last night by the British Ambassador in Cairo (Sir Ralph Stevenson). An Egyptian spokesman said: “The new British plan occupies many pages and is completely detailed.” So far there is no Egyptian reaction to the proposals which are concerned with the technicians who would remain at the base after the evacuation of combat forces, and the revival of the base in case of emergency. The new British proposals have full American backing, it is understood in London diplomatic quarters. An outline of the new proposals is believed to be:— The immediate resumption of negotiations. The evacuation of the 80,000-strong British garrison in the Canal Zone within a two-year period. Re-entry of foreign troops in the event of a threat to Turkey, Persia, or any Arab State. The maintenance of the base by British technicians supplied by British civilian firms. This final proposal has removed a major obstacle in the British-Egyptian talks—the earlier British demand that the remaining technicians must wear, British military uniforms, says Reuter’s diplomatic correspondent. Optimism Over Agreement Diplomatic quarters in London now are optimistic that agreement in the long-standing CanaLJZone dispute will be reached with Egypt very shortly and that a text can be initialled within a matter of weeks. The proposals, which were approved last week by the British Cabinet, were reported from Cairo to have been handed to Colonel Nasser by MajorGeneral R. E. Benson, the Commander-in-Chief of the British forces in Egypt, at a dinner party given by General Benson.