890G.248/47: Telegram

The Minister Resident in Iraq (Knabenshue) to the Secretary of State

5. Referring further to the last paragraph of my telegram No. 2, January 3, 7 p.m., the Minister of Defense informed me in reply to my inquiries at an official reception this morning that there is not sufficient dollar exchange available in Iraq to pay for the armament ordered for their Douglas planes or for other war material under orders in the United States and that the British are continuing their refusal to supply the necessary exchange. Obviously the British are awaiting a more sympathetic implementation of Iraq’s contractual obligations.