124.90F/9
The Secretary of State to the Minister in Egypt (Fish)
Sir: As you are no doubt aware, the Department has had under consideration for some time the question of the possible establishment of diplomatic or consular representation in Saudi Arabia.
Following the obtainment of a concession by the Standard Oil Company of California for oil exploration and development in Saudi Arabia2 that company urged upon the Department the desirability of establishing such relations. In 1936 Mr. Leland Morris, the then American Consul General at Alexandria, was instructed to proceed to Jedda to investigate conditions there and to furnish the Department with his recommendations as to whether it would be advisable under the circumstances to establish official representation at Jedda.
Mr. Morris’ report was submitted in a despatch dated March 23, 1937, of which a copy is enclosed for your information.3 It will be observed that Mr. Morris’ conclusion was “that the development of American interests does not warrant the establishment of any sort of official representation at Jedda at the present time”.
Since that time American interests in Saudi Arabia have appreciably increased. In that connection it has been noted from the report entitled “Survey of American Interests in Saudi Arabia”, dated April 1, 1939, submitted by the American Consulate at Cairo,3 that there are now some 273 American citizens residing in Saudi Arabia, of whom 263 are stated to be employed by the California-Arabian Standard Oil Company (Standard Oil Company of California) and some 10 by the Saudi Arabian Mining Syndicate.
It has been noted from your despatch no. 1588 of March 27, 1939,3 that the Japanese Minister in Cairo has recently proceeded to Saudi-Arabia on an official mission from which it would appear that it may be the intention of the Japanese Government to accredit its Minister [Page 825] at Cairo to Saudi Arabia as well as to Egypt. The American Legation in Baghdad has recently reported that the German Minister there, while continuing to maintain his residence in Iraq, has been accredited to Saudi Arabia.
The Department continues to share the opinion expressed by Mr. Morris, following the careful investigations made by him in Jedda, that there is no present necessity of the opening by this Government of permanent diplomatic and consular representation in Saudi Arabia. However, in view of the increasing importance of American interests in that country and the increasing number of American citizens resident there, the Department is of the opinion that careful consideration deserves to be given to the possible desirability of accrediting the chief of mission and his staff in Cairo, as well as the staff of the Consulate in Cairo, to the Saudi Arabian Government. Under these circumstances the chief of mission would be authorized to visit Jedda for the purpose of presenting his credentials and arrangements would be made to enable him to pay periodic visits to Saudi Arabia as occasion arose. The way would thus be open for the chief of mission or for one of his subordinates to visit Jedda in order to make representations on any matters affecting American interests which might urgently arise at any time.
You are requested to examine the question on the basis of the information at your disposal in Cairo and to make available to the Department as soon as possible your considered opinion concerning the practicability and possible advantages of the foregoing suggestion. While it is true that the operations of the California-Arabian Standard Oil Company are centered in El Hasa, which is more accessible to Baghdad than to Cairo, it is thought that the greater accessibility to Cairo of Jedda, where matters touching official relations of the United States with Saudi Arabia would necessarily be centered, would make it preferable for the mission at Cairo to be accredited to Saudi Arabia rather than the mission at Baghdad. However, any views on the subject which you may consider pertinent will be welcomed.
Very truly yours,