Extracts from letter from Liam Cosgrave to John A. Costello (Dublin)

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Selwyn Lloyd is very worried over conditions in Egypt and feels that it is essential that firm undertakings should be got from Nasser before the British and French forces leave. Nasser wants them to leave at present without any agreed conditions. Lodge has been pressing the British and French to get out of Egypt. Lloyd went over the weekend to see Dulles, whom, he said, he found more realistic (and looking quite well) as Lodge and the State Department are in favour of the withdrawal of the British and French troops. Lloyd feels that the UN force should stay in the Middle East until a solution of the problem has been achieved and that, in fact, they should remain until the Israeli-Arab problem is solved. It is understood that Hammarskjöld got nothing from Nasser and that the latter was vague about the whole position. Lloyd confirmed what I told you in an earlier letter, that the British and French were amazed at the isolated position in which they found themselves here as a result of their action over Suez. He said ‘Even Ireland voted against us’. He went on to say that there was no truth in the allegation that there was collusion between Israel and Britain. This I would take with a grain of salt. Incidentally, Eden’s speech on Saturday did not create a very good impression in view of the debate which is at present proceeding in the General Assembly.

There is some pessimism here about oil supplies and varying views on when the Canal will reopen. Some say a month, others six months.

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