Office of the Historian

124.90F/11: Telegram

The Minister in Egypt (Fish) to the Secretary of State

Alexandria, June 21, 1939—9 a.m.
[Received 1 p.m.]

69. The Department’s telegram No. 36, June 13, noon. It is my considered opinion that the American Minister to Egypt Should also be accredited to Saudi Arabia;

1.
American financial interests in Saudi Arabia have recently materially increased.
2.
The number of Americans actively connected with American interests in Saudi Arabia now exceeds 325;
3.
Other important countries are giving increased attention to Saudi Arabia.
4.
In a personal and confidential conversation yesterday morning with Mr. Lenahan7 of Jedda, who is in Alexandria for a short time, I learned that on May 31 his company obtained an exclusive concession for a period of 60 years covering practically all of Saudi Arabia. An initial cash payment in gold of $1,200,000 will be made to the King within 3 or 4 weeks and an annual rental of $170,000 is to be paid until oil is discovered in commercial quantities. The King told Mr. Lenahan that the Japanese (who Mr. Lenahan believes are working jointly with the Italians and the Germans) and the Petroleum Development, Limited (aided by the British Minister) had each offered much larger sums for smaller concessions. The King however [Page 827] says he has faith in the United States and is satisfied with and trusts the California Company.
5.
The King believes that the Japanese, Italians and Germans, have in mind additional territory as well as oil concessions.
6.
The King feels that to grant the Petroleum Development, Limited, another concession would be to give the British a further grip on his country.
7.
Mr. Lenahan believes it to be of the utmost importance to the California Company that a Legation be established so that the interests of the company may be safeguarded.

Fish
  1. William Lenahan, representative of the California-Arabian Standard Oil Company.↩