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Though Egyptian President Sadat remains in control , there are grounds for concern about the strength of his domestic position. Reports from a variety of sources over the past several months have conveyed a mixed picture of the stability of his regime and the degree of support for his leadership. On one hand, Sadat appears to enjoy widespread popular backing and senior Egyptian officials responsible for security have expressed confidence that the regime can handle any subversive elements, civilian or military. The military establishment appears to be loyal and continues to provide the main underpinning for Sadat's regime. As long as it backs him, he can probably remain in power. Yet the officer corps is not immune from the influence of the activities of leftist elements, the resurgence of rightists of the * This memorandum was prepared under the auspices of the National Intelligence Officer for the Middle East. It was drafted by State/INR and was coordinated at the working level among CIA, DIA, NSA, State/INR, Treasury, and intelligence organizations of the Armed Services. Review of the draft and provision of helpful comments by the US mission in Cairo are also gratefully acknowledged.