EGYPT’S CONTROL OF CANAL

Press, Volume XCV, Issue 28233, 22 March 1957, Page 11

EGYPT’S CONTROL OF CANAL

“Bleak Prospect For Suez Settlement”

(N.Z. Press Association—Copyright)

(Rec. 9 p.m.) NEW YORK, March 21. The outlook for a settlement of the Suez Canal and Palestine disputes had neyer been bleaker than on the eve of the fourth mission to the Middle East of the United Nations Secretary-General, Mr Hammarskjold, a dispatch in the “New York Times” said today.

The dispatch, from a “New York Times” correspondent in Cairo, Homer Bigart, said that Mr Hammarskjold would find the President of Egypt, Colonel Nasser, inflexibly determined to reject any plan that would weaken Egyptian .control over the canal.

Colonel Nasser was reported to be willing to discuss proposals for setting up-an international advisory board on canal operations. But such a board would have power only to recommend canal improvement proposals. Colonel Nasser was not expected to yield in his insistence that Egypt collect all tolls and control funds.

On the Palestine' issue, Mr Hammarskjold appeared to have - only one weapon against the intransigence of Colonel Nasser, the dispatch said.

He could threaten the withdrawal of the United Nations Emergency Force from Gaza and Sharm el Sheigh, thus exposing Egypt to renewed aggression by Israel, unless Colonel Nasser agreed to the neutralisation of those areas.

On Gaza there was a glimmer of hope, the dispatch said. Mr Hammarskjold faced the prospect of being told that Egypt had no intention now of sending troops into the Gaza Strip.

But Colonel Nasser was expected to seek to put Israel on the defensive against world opinion by insisting that the flnited Nations Emergency Force should be deployed on both sides of the Gaza demarcation line.

Israel is bitterly opposed to stationing United Nations troops or Israeli soil.

Mr Menon Sees Nasser

(Rec. 8 p.m.) NEW YORK, Mar. 20. Mr V. K. Krishna Menon, the Indian Minister without Portfolio, was seen in United Nations today as a key figure in moves to solve the Suez Canal issue along lines acceptable to both the West and Egypt,' a- Keuter correspondent reported. Diplomats said that Mr Menon \fras certainly performing a valuable function in his talks with President Nasser in advance of the arrival in Cairo of Mr Hammarskjold, the United Nations Secretary-General. One of Mr Hammarskjold’s tasks is to seek a satisfactory interim arrangement for the canal pending a final settlement of the dispute precipitated by Egypt’g' nationalisation last July.

Western delegations noted today’s State Department statement that Egypt’s new memorandum on operation of the canal was a tentative proposal subject to consultation with the SecretaryGeneral, and reaffirmed United States support for a solution based on the six principles approved by the United Nations Security Council last October. The interpretation given at United Nations Headquarters to this statement was that the Egyptian proposals, submitted yesterday, are capable of enlargement to satisfy the requirements of the Powers.

Eisenhower May Visit India.— Mr Lakshmi Menon, Parliamentary Secretary to the Prime Minister, Mr Nehru, said today President Eisenhower had expressed a wish to visit India, but he* could not say definitely when this visit might take place.—New Delhi. March 20.