PAYMENT OF TOLLS

Press, Volume XCV, Issue 28224, 12 March 1957, Page 11

PAYMENT OF TOLLS

U.S. Hope For Compromise (Rec. 8 p.m.) WASHINGTON, March 10. An authoritative United States source said today that he was hopeful that a compromise could be reached on the payment of Suez Canal tolls. The source said that this would satisfy Egypt’s national feelings, whilst maintaining the 50-50 principle under which half the money would go to a non-Egyptian account. Reports from Cairo that Egypt had rejected the Western FourPower plan for interim operations of the canal caused little surprise in Washington. This plan, submitted to Egypt through the United Nations, proposed that all tolls be paid to the International Bank, which would then pay half the money to Egypt. An official in close touch with Middle East developments said that it was his impression that the key problem was not the division of the tolls, but whether Egypt or some outside party should collect the tolls. Conversations at the United Nations had suggested that Egypt was prepared to accept the principle of division of tolls between Egypt and some international account, but only on condition that the Egyptian Canal Authority be able to collect all the tolls in the first instance. This source said that Egypt regarded this as a matter of national sovereignty. Egypt would agree to give up half the money to an outside account, but it meant relying on Egypt’s word. This source said that there would obviously be little enthusiasm for a solution of this nature. Therefore, the hbpe was that some formula could be found which would at the same time satisfy the West’s desire that half the tolls should go to an international account and also meet Egypt’s insistance that there should be no derogation of its national sovereignty. , Meanwhile, United States State Department officials declined to comment on the Cairo reports that Egypt had rejected the Western-sponsored toll payment plan. A spokesman said that the United States was still awaiting official word from the United Nations on the status of the Western proposal. Until then, he said, "we are not getting over-excited about the Cairo reports.**