Office of the Historian

230. Memorandum From the Deputy Assistant Secretary of State for Near Eastern, South Asian, and African Affairs (Rountree) to the Secretary of State1

Washington, May 11, 1956.

SUBJECT

  • Renegotiation of the Dhahran Airfield Agreement

Discussion:

You will recall that consideration of certain actions required in connection with the renegotiation of the Dhahran Airfield Agreement was postponed until after your return from Paris.

At the bilateral talks with the British in Paris you informed Foreign Minister Lloyd of our intention to sell arms to Saudi Arabia. Although he did not receive the news with enthusiasm, he interposed no objection.2

These matters are of some urgency, as Ambassador Wadsworth is tentatively planning to leave May 15. We believe he should, on returning to Saudi Arabia, have the President’s reply to King Saud’s letter and a clear idea of our policy on arms sales to Saudi Arabia. You may wish to call a meeting as soon as convenient with Mr. Hoover, Mr. Murphy, Mr. MacArthur, Ambassador Wadsworth, and representatives of NEA to discuss the above matters.

Three additional steps are now required:

1.
Transmittal to the President of the draft reply to the letter from King Saud (Tab A).3 Ambassador Wadsworth, in his call on the President on May 9, left copies of King Saud’s messages with the President.
2.
The authorization of the sale to Saudi Arabia of approximately $33 million in requests for military equipment currently pending, including 6 Jet Trainer aircraft (T–33), 6 cargo aircraft (C–119) and 463 miscellaneous items of ordnance, transport, quartermaster supplies, and other basic infantry equipment, but not including F–86 aircraft and M–47 tanks. Ambassador Wadsworth wishes to be authorized to inform the King of this decision at an appropriate [Page 371] stage of the negotiations. Upon receiving word from him that he had informed the King, we would forward letters of offer to the Saudi Arabian Embassy. The Ambassador believes Saudi Arabia will wish to have these items made available within six months. (Tab C)4
3.
Approval of the instructions for the renegotiation (Tab B).5 Your attention is invited particularly to Paragraph 11, Page 4. This refers to additional requests which will be received from Saudi Arabia during the next few years representing the remaining phases of their five year armed forces development plan. We will be committed with respect to these requests, but the time and rate of delivery will be subject to US–SAG agreement. We anticipate that this would involve an additional approximate $50,000,000 in equipment, plus ammunition and spare parts.

Recommendation:

1.
That you approve the memorandum to the White House with attachments (Tab A).
2.
That you approve the negotiating instructions for the Dhahran Airfield Agreement (Tab B) which provides, in Paragraph 11, that we will sell the King the items which he needs for his Five–Year Plan on a phased basis.6
3.
That you authorize the Ambassador to inform King Saud at an appropriate moment that, as a part of the Five–Year Plan, we are willing to sell him the items he has thus far requested, with the exception of M–47 tanks and F–86 aircraft.7
  1. Source: Department of State, Central Files, 711.56386A/2–856. Secret. Drafted by Newsom.↩
  2. See Document 227.↩
  3. Not found attached. On May 12, in a memorandum to the President, Dulles forwarded a suggested draft reply to the King’s oral message of April 2 and his written message of April 3. According to Dulles, “an appropriate answer from you to King Saud, acknowledging these messages and expressing our continued willingness to cooperate with Saudi Arabia would assist substantially in establishing the appropriate atmosphere for a successful renegotiation.” (Department of State, Central Files, 611.86A/5–1256)↩
  4. Not found attached.↩
  5. Not found attached.↩
  6. Draft instructions for the renegotiation of the agreement had been sent to Jidda in CA–8034, April 13. CA–9304 to Jidda, May 23, authorized some changes in those instructions. (Ibid., 751.56386A/4–1356 and 711.56386A/5–2356, respectively)↩
  7. Dulles initialed his approval of the three recommendations.↩