124.90F/10: Telegram
The Minister Resident in Iraq ( Knabenshue ) to the Secretary of State
[Received June 21—9:40 a.m.]
33. The Department’s instruction number 370 of May 24. The now proven importance of our oil interests in Saudi Arabia and the generally improved economic conditions which will result therefrom make it desirable in my opinion that we now enter into formal diplomatic relations with that state. To do so would please the King and the American interests concerned and enhance our prestige in the Near East. Another important factor is of course the recent interest displayed in that country by Germany and Japan. The most practical course would be to accredit the Minister in Cairo and his staff for brief occasional visits to Jedda.