890F.6363/37: Telegram

The Chargé in Saudi Arabia ( Moose ) to the Secretary of State

47. Department’s 772, July 20, 10 a.m. [p.m.] to Cairo. Captain Bale, a British officer, Tenth Army, has been in Bahrein over 3 weeks awaiting permission to visit Khahron [Dhahran] in furtherance of British plan for denial operations there. British Minister in Jidda has been requested to facilitate Bale’s entry into Arabia but sees little point in visit so long as Casoc officials have instructions to give no aid to denial plan until company has assurance from American Government that the Government assumes responsibility for damage or prejudice to concession rights resulting from military action.

This Legation has no information about General Spalding’s activities or any United States Army plans for defense or denial of Dhahran oil. British denial scheme appears to be at a standstill until oil company receives desired assurance or Saudi Government assents to active preparations for denial operations. I still adhere to opinion expressed in my 30, July 15, 1 p.m. The British Minister here is reporting the situation to his Minister of State in Cairo and the Department might be prepared for a possible British inquiry about the desired assurances.

Repeated to Cairo.

Moose