811.5151/282
Memorandum of Conversation, by Mr. W. Leonard Parker of the Division of Near Eastern Affairs
| Participants: | Dr. Henry [Harry] White, Assistant to the Secretary of the Treasury. |
| Mr. Bernstein, Treasury Department. | |
| Mr. Luxford, Treasury Department. | |
| Mr. Glendinning, Treasury Department. | |
| Mr. Murray, PA/M74 | |
| Mr. Jernegan, NE75 | |
| Mr. Parker, NE |
At Dr. White’s request Mr. Murray, accompanied by Mr. Jernegan and Mr. Parker, attended a meeting in Dr. White’s office for the purpose of discussing this Government’s financial policy in the Near East.
[Here follows section relating to general fiscal problems of the Near and Middle East area as a whole.]
The conversation then turned to Saudi Arabia. Mr. Murray pointed out that there are important developments under way with respect to Saudi Arabia in which the President is greatly interested. In order that these important developments may take place it is essential that we support the existing Saudi Arabian regime by bolstering the Saudi Arabian economy through the extension of financial aid. Dr. White said that from a strictly financial point of view the Treasury is not interested in Saudi Arabia but that since the Department of State is interested for political reasons, the Treasury wishes to implement our political policy by means of a financial policy in accord therewith. He said that it would be possible to lend-lease silver to Saudi Arabia under a stabilization arrangement. It was pointed out [Page 876] that the Saudi Arabian problem consists of (1) the immediate need for silver, and (2) a long-range program to help Saudi Arabia to establish a workable and sound fiscal and monetary system. Dr. White said that Mr. Gunter, a Treasury representative now in New York awaiting sailing to the Near East, could be recalled and after consultation sent directly to Saudi Arabia by air. A telephone call to New York revealed that Mr. Gunter was still there, and he was instructed to return to Washington immediately. It is contemplated that the Saudi Arabian financial situation will be discussed with Mr. Gunter, who has some background knowledge thereof, and that Mr. Gunter, accompanied by our Chargé d’Affaires at Jidda, will discuss financial matters with King Ibn Saud and then report to the Treasury. Upon the receipt of Mr. Gunter’s report it will be possible to determine what should be done to render financial assistance to Saudi Arabia.
[Here follows section dealing with Iran, printed on page 582; also section on India, not printed.]