EGYPT: No Doubts About Who's in Charge

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The revamping of socialism at home is already having rippling effects elsewhere. Sadat's moves, for instance, are making it easier for Syrian President Hafez Assad to convince his Baathist regime to relax restrictions on the private investment that Damascus also needs. More significantly, Sadat is finally reclaiming the Arab leadership that Egyptians had traditionally enjoyed and Nasser once held. Nasser's charisma, however, worked mainly on the masses, many of whom still listen to broadcasts of his old speeches (some of them insist that he is well and living in the Soviet Union and that he will one day return). Sadat's approach is more to the Arab leaders with whom Nasser constantly quarreled. Unlike Socialist Nasser, Sadat is willing to deal with any form of government, and he goes out of his way to create unity and avoid arguments. When Libya's Muammar Gaddafi pulled his representatives out of Cairo to protest Sadat's cease-fire with Israel, Sadat's aides pleaded with the President to respond. "We could cut Gaddafi to pieces with propaganda," insisted one. Sadat refused, however, and so far has publicly ignored Gaddafi's attacks. Nasser's picture still hangs beside that of Sadat in most government offices, and Sadat and other government officials continue to praise Nasser in public. But in private many officials say: "But of course Nasser made many mistakes. Things are different now."

Sadat still faces hazards. One is that by relaxing state controls he may transform Egyptian life more than he intends. Says one critic: "How can you have freedom for foreign capital without freedom for local capital? How can you give freedom to the capitalist without giving freedom to the trade unions?" Regionally, Sadat's new friendship with Washington is fine as long as Israel continues to withdraw from Egyptian territory. But if the Israelis balk, Sadat at future Arab councils is likely to find himself the target rather than the central force.