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THE WHITE HOUSE

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WASHINGTON

STAFF NOTES NO. 121
May 28, 1957
1. Jordan Aid. -- The top Jordanian cabinet ministers have re(
jected as politically unacceptable the usual conditions contained in
the draft agreement for $10 million in additional aid. Our representatives in Amman believe that the Jordanians are so deeply concerned
that they will reject the aid rather than face the public with the conditions
attached. In reply, we yesterday instructed the Embassy that if, in its
opinion, political factors were overriding, it could release the $10

million substantially without conditions.

(5)

met last Thursday in emergency session to consider the measures to
be taken in light of the French suspension of credits. Our Ambassador
was subsequently requested to give careful consideration to Tunisia's
problem of meeting local bills, generated by the development budget,
amounting to some 2.5 billion francs which will come due in June and
which, if not paid, could have important political and economic
repercussions. The Tunisians with the concurrence of the Ambassador
and the ICA Mission Director, recommend the temporary diversion of
the francs resulting from imports such as sugar and particularly POL,
which would be used by the Tunisian Government to meet its obligations.
When later repaid,

these funds would be used for mutually agreed

economic development projects.

(S)

,

3. Position of British Foreign Secretary. -- Embassy London speculates
that Foreign Secretary Lloyd may be replaced when the heat of Suez has
cooled off, but that if the change comes,

efforts will be made to protect

By 2enY oato_/2 SazLo

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E.G. ° “73, See. 3-204

Lloyd's standing in the party and the country as much as possible. (C}
4, Indian Land Development. -- Interior recently announced that 65, 000
acres of fertile and irrigable land on the Colorado River Indian Reservation
near Parker, Arizona, would be offered for agricultural development lease
on a competitive basis. The Phoenix press has indicated erroneously that
the United Land and Development Co. of Phoenix was to be the lessee, but

in fact Interior decided not to negotiate such a large lease on the basis of
that company's proposal alone, The lease must by law be consummated by
August 14, and Interior is circulating requests for other proposals. Justice
has advised that such a development lease would not adversely affect the

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