265. Letter From the Assistant Secretary of Defense for International Security Affairs (Gray) to the Deputy Under Secretary of State (Murphy)1
Dear Robert: In view of the rapidly moving developments in King Saud’s visit I believe it would be advisable for me to confirm [Page 454] for you the current Department of Defense views on certain of the critical issues which have arisen or are likely to arise in conjunction particularly with the renewal of the Dhahran Airfield Agreement and the quid pro quo to be offered in return therefor, including reimbursable military assistance.
Our analysis of the King’s memorandum to the President in this regard indicates three major areas for coverage in the forthcoming technical discussions. These are first a request for U.S. Government approval or sanction of the projected development of the Saudi Arabian armed forces, second, the extent to which we may be able specifically to meet the King’s request for justification for renewal of the Dhahran Airfield Agreement, and third, the top limit in monetary terms of our offer of quid pro quo and the source of funds.
With respect to the Saudi Arabian plan for the reorganization of their armed forces, the Department of Defense is not prepared to give specific answers to the questions which they have raised. The plan itself involves a complete reorganization of the armed forces and as such will require detailed review by our highest military authorities before it can be given governmental sanction. An initial appraisal indicates that the time phasing proposed by the Saudis is overly ambitious and should be extended appreciably. Nevertheless we will be prepared to review the specific requests for purchase of military equipment previously submitted and further are ready to discuss other proposals they may make as to additional purchases.
With regard to quid pro quo, developments to date do not indicate any necessity for changing the basic position previously agreed to, namely that we should not offer to provide any military equipment as such on a grant basis but should instead concentrate our efforts on a greatly expanded military training program. The Department of the Air Force has prepared a plan for the expansion of U.S. air training activities, a copy of which is attached.2 The Army similarly has an outline plan for the expansion of its training activities, the essential elements of which are set forth in the [Page 455] attached copy of a memorandum from the Army to the Chief of Staff, USAF.3 These plans have the approval of the Department of Defense as a basis for discussion with the Saudi delegation. However, while we would not object to the transfer of title to training equipment to the Saudi Arabian Government as recommended by the Secretary of the Air Force, it is our view that no commitment along these lines should be made to the Saudi Arabian Government at this time. Similarly we should not indicate that such transfer of title some time in the future is entirely out of the question.
It is estimated that the total cost of the above programs over a five-year period would be approximately $45 million. The estimated breakdown of this $45 million total is as follows: projection of current Army and Air training activities over a five-year period— $5.5 million; recommended Air training $32.8 million; and augmented Army training including the Army mapping project—$6.7 million. We would be prepared to support these two programs out of Mutual Security funds up to the extent of $35 million over a five-year period. The costs for U.S. personnel involved and related support would be met out of Defense funds. Given the $5 million already approved by ICA for the construction of the civil air terminal at Dhahran, the cost to the United States of the total program should be approximately $50 million over five years, the amount which Secretary Dulles has requested.
Sincerely yours,
- Source: Department of State, Central Files, 786A.11/2–457. Secret.↩
- Not found attached. A copy of the plan entitled, “Air Training Plan Saudi Arabia” was transmitted under cover of a memorandum dated February 4, 1957, from Wilkins to Rountree. (Ibid., NEA/ARP Files: Lot 70 D 148, Saudi Arabia … U.S. Military Assistance Military Training Program)↩
- Not found attached. A copy of the memorandum, dated January 22, 1957, is attached to a copy of the Gray letter, ibid.↩