Text of the "Principles of Relations and Cooperation Between Egypt and the United States."

THE PRESIDENT of the Arab Republic of Egypt, Muhammed Artwar el-Sadat, and the President of the United States of America, Richard Nixon,

--Having held wide-ranging discussions on matters of mutual interest to their two countries,

--Being acutely aware of the continuing need to build a structure of peace in the world and to that end and to promote a just and durable peace in the Middle East, and,

--Being guided by a desire to seize the historic opportunity before them to strengthen relations between their countries on the broadest basis in ways that will contribute to the well-being of the area as a whole and will not be directed against any of its states or peoples or against any other state.

Have agreed that the following principles should govern relations between Egypt and the United States.

I. GENERAL PRINCIPLES OF BILATERAL

RELATIONS

Relations between nations, whatever their economic or political systems, should be based on the purposes and principles of the United Nations Charter, including the right of each state to existence, independence and sovereignty; the right of each state freely to choose and develop its political, social economic and cultural systems; non-intervention in each other's internal affairs; and respect for territorial integrity and political independence.

Nations should approach each other in the spirit of equality respecting their national life and the pursuit of happiness.

The United States and Egypt consider that their relationship reflects these convictions.

Peace and progress in the Middle East are essential if global peace is to be assured. A just and durable peace based on full implementation of U.N. Security Council Resolution 242 of November 22, 1967, should take into due account the legitimate interest of all the peoples in the Mid East, including the Palestinian people, and the right to existence of all states in the area. Peace can be achieved only through a process of continuing negotiation as called for by United Nations Security Council Resolution 338 of October 22, 1973, within the framework of the Geneva Middle East Peace Conference.

In recognition of these principles, the Governments of the Arab Republic of Egypt and the United States of America set themselves to these tasks:

They will intensify consultations at all levels, including further consultations between their Presidents, and they will strengthen their bilateral cooperation whenever a common or parallel effort will enhance the cause of peace in the world.

They will continue their active cooperation and their energetic pursuit of peace in the Middle East.

They will encourage increased contacts between members of all branches of their two governments--executive, legislative and judicial--for the purpose of promoting better mutual understanding of each other's institutions, purposes and objectives.

They are determined to develop their bilateral relations in a spirit of esteem, respect and mutual advantage. In the past year, they have moved from estrangement to a constructive working relationship. This year, from that base, they are moving to a relationship of friendship and broad cooperation.

They view economic development and commercial relations as an essential element in the strengthening of their bilateral relations and will actively promote them. To this end, they will facilitate cooperative and joint ventures among appropriate governmental and private institutions and will encourage increased trade between the two countries.

They consider encouragement of exchanges and joint research in the scientific and technical field as an important mutual aim and will take appropriate concrete steps for this purpose.

They will deepen cultural ties through exchanges of scholars, students, and other representatives of the cultures of both countries.

They will make special efforts to increase tourism in both directions, and to amplify person-to-person contact among their citizens.

They will take measures to improve air and maritime communications between them.

They will seek to establish a broad range of working relationships and will look particularly to their respective Foreign Ministers and Ambassadors and to the Joint Commission on Cooperation, as well as to other officials and organizations, and private individuals and groups as appropriate, to implement the various aspects of the above principles.

II. JOINT COOPERATION COMMISSION

The two governments have agreed that the intensive review of the areas of economic cooperation held by President El-Sadat and President Nixon on June 12 constituted the first meeting of the Joint Cooperation Commission, announced May 31, 1974. This Commission will be headed by the Secretary of State of the United States and the Minister of Foreign Affairs of Egypt. To this end, they have decided to move ahead rapidly on consultations and coordination to identify and implement programs agreed to be mutually beneficial in the economic, scientific and cultural fields.

The United States has agreed to help strengthen the financial structure of Egypt. To initiate this process, United States Secretary of the Treasury William Simon will visit Egypt in the near future for high level discussions.

III. NUCLEAR ENERGY

Since the atomic age began, nuclear energy has been viewed by all nations as a double-edged sword---offering opportunities for peaceful applications, but raising the risk of nuclear destruction. In its international programs of cooperation, the United States Government has made its nuclear technology available to other nations under safeguard conditions. In this context, the two governments will begin negotiation of an Agreement for Cooperation in the field of nuclear energy under agreed safeguards. Upon conclusion of such an agreement, the United States is prepared to sell nuclear reactors and fuel to Egypt, which will make it possible for Egypt by the early 1980s to generate substantial additional quantities of electric power to support its rapidly growing development needs. Pending conclusion of this Agreement, the United States Atomic Energy Commission and the Egyptian Ministry of Electricity will this month conclude a provisional agreement for the sale of nuclear fuel to Egypt.

IV. WORKING GROUPS

The two governments have agreed to set up Joint Working Groups to meet in the near future to prepare concrete projects and proposals for review by the Joint Commission at a meeting to be held later this year in Washington, D.C. These Joint Working Groups will be composed of governmental representatives from each country and will include the following:

(1) A Joint Working Group on Suez Canal Reconstruction and Development to consider and review plans for reopening the Suez Canal and reconstruction of the cities along the Canal, and the United States role in this endeavor.

(2) A Joint Working Group to investigate and recommend measures designed to open the way for United States private investment in joint ventures in Egypt and to promote trade between the two countries. Investment opportunities would be guided by Egypt's needs for financial, technical, and material support to increase Egypt's economic growth. The United States regards with favor and supports the ventures of American enterprises in Egypt. It is noted that such ventures, currently being negotiated, are in the field of petrochemicals, transportation, food and agricultural machinery, land development, power, tourism, banking, and a host of other economic sectors. The estimated value of projects under serious consideration exceeds two billion dollars. American technology and capital combined with Egypt's absorptive capacity, skilled manpower and productive investment opportunities can contribute effectively to the strengthening and development of the Egyptian economy. The United States and Egypt will therefore negotiate immediately a new Investment Guarantee Agreement between them.

(3) A Joint Working Group on Agriculture to study and recommend actions designed to increase Egypt's agricultural production through the use of the latest agricultural technology.

(4) A Joint Working Group on Technology, Research and Development in scientific fields, including space, with special emphasis on exchanges of scientists.

(5) A Joint Working Group on Medical Cooperation to assist the Government of Egypt to develop and strengthen its medical research, treatment and training facilities. These efforts will supplement cooperation in certain forms of medical research already conducted through the Naval Medical Research Unit (NAMRU), whose mutually beneficial work will continue.

(6) A Joint Working Group on Cultural Exchanges to encourage and facilitate exhibitions, visits, and other cultural endeavors to encourage a better understanding of both cultures on the part of the peoples of the United States and Egypt.

The two governments have agreed to encourage the formation of a Joint Economic Council to include representatives from the private economic sector of both countries to coordinate and promote mutually beneficial cooperative economic arrangements.

In support of their economic cooperation, the United States will make the maximum feasible contribution, in accordance with Congressional authorization, to Egypt's economic development, including clearing the Suez Canal, reconstruction projects, and restoring Egyptian trade. In addition, the United States is prepared to give special priority attention to Egypt's needs for agricultural commodities.

Consistent with the spirit of cultural cooperation, the United States Government has agreed to consider how it might assist the Egyptian Government in the reconstruction of Cairo's Opera House. The Egyptian Government for its part intends to place the "Treasures of Tutankhamen" on exhibit in the United States. Both governments, in conclusion, reiterate their intention to do everything possible to broaden the ties of friendship and cooperation consistent with their mutual interests in peace and security and with the principles set forth in this statement.

In thanking President E1-Sadat for the hospitality shown to him and the members of his party, President Nixon extended an invitation to President El-Sadat, which President E1-Sadat has accepted, to visit the United States during 1974.

Cairo, Egypt, June 14, 1974.

RICHARD NIXON

MUHAMMED ANWAR-EL-SADAT