Memorandum of Telephone Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Alling)

Mr. Hamilton telephoned today to say that Mr. James Moffett had seen Mr. Jesse Jones yesterday in regard to the proposed financial assistance to King Ibn Saud. Mr. Jones had told Mr. Moffett that the President had approved the project but that he (Mr. Jones) did not see as yet how it could be handled under the Lend-Lease Act. Mr. Jones said, however, that he would try some other way in taking care of the matter. He asked Mr. Moffett numerous questions regarding the organization of the company, the situation in Saudi Arabia and the need of the King for financial assistance. Mr. Hamilton concluded by saying that he expected to obtain additional information either tonight or tomorrow which he would pass on to us.