890F.515/4: Telegram

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

12. Reference my 11, February 9, midnight.53 London has informed Wikeley, British Chargé in Jidda, that one or two Palestinian currency control experts are coming to Jidda to discuss and study problem of note issue.

The 5,000,000 new rials shipped from Bombay on January 21 arrived Jidda February 4 and have already been distributed by the Government in payment of salaries several months overdue leaving treasury empty. The Government has had to sell rupees at 66 to the gold pound in order to acquire gold with which to buy rials.

In original plan of aid for Saudi Arabia proposed in November by British Minister in Jidda it was anticipated that Casoc would supply 3,000,000 rials in 1943. With veto of this plan by London and substitute proposal Casoc anticipates increase in aid to be given. Amount and form of aid undecided as yet.

Repeated to Cairo.

  1. Not printed.