890F.51/29: Telegram

The Acting Secretary of State to the Minister in Egypt (Kirk)

333. Your 1004, July 23, 1 p.m. The Department thoroughly appreciates the desirability of extending aid to Saudi Arabia and the question is receiving every attention: Legal difficulties apparently make impossible an unsecured loan, from this Government to that of King Ibn Saud, but the Reconstruction Finance Corporation is considering means whereby credit may be extended against collateral [Page 642]in the form of future deliveries of petroleum products. A decision is expected very shortly.

In your discretion you may informally advise the Saudi Arabian Legation that its request is receiving the closest attention of this Government and that a reply will be made at the earliest possible moment.

Welles