Western Economic Squeeze On Egypt

Press, Volume XCVII, Issue 28552, 3 April 1958, Page 13

Western Economic Squeeze On Egypt

(Special Correspondent N.Z.P.A.) (Rec. 8 p.m.) LONDON, April 2

The West must now decide whether to continue a gamble of non-co-opera-tion with Egypt in the hope of bringing tolonel Nasser to heel, or begin to relax the economic squeeze to prevent Russia obtaining a complete stranglehold over the United Arab Republic.

These are the alternatives seen by the Beirut correspondent of the “News Chronicle” as facing the Western Powers as a result of Colonel Nasser's decision to accept a two-year-old invitation to go to Moscow. He suggests that an urgent reappraisal of Western policy in the Middle East is necessary. Colonel Nasser's visit, the correspondent says, is seen in Beirut as an act of desperation after

the utter failure of Egypt's economic tie-up with the Soviet.

which' had raised insoluble problems of convertibility at a time when Egypt could not do without imports from the West to maintain her heavy industry. Egypt recently has been trying hard to break out of the economic cordon with which the West had surrounded her since Suez.

She had now offered a 25 per cent, discount on all cotton purchased with Western currencies but was still desperately short of dollars, sterling and marks. “All the time Colonel Nasser has been hoping America would relax her present rigid attitude and make dollars available, but the recent replacement of Egypt's Ambassador to Washington is seen in Beirut as evidence that ffls efforts have been unsuccessful.

“Since the Soviet arms deal. Colonel Nasser has been trying to play the East against the West without committing himself wholly on either side. “That is why he avoided the Moscow visit for so long. “Now the success of Western economic pressure is forcing him to make a final gamble. “It is thought the decision to visit Moscow is prompted by the hope that it will force America into offering aid to Egypt to prevent her falling into the Soviet clutches.

“If this fails Colonel Nasser may have no alternative but to go the whole hog with the Soviet”