Office of the Historian

891.51/7–2443

Memorandum of Conversation, by Mr. Paul F. McGuire of the Office of the Adviser on International Economic Affairs (Feis)

[Washington,] July 24, 1943.
Participants: Messrs. Bernstein, Gunter, Glendinning, Treasury Dept.
Col. Luscombe, Persian Gulf Service Command, U.S. Army;
Major Patton, Finance Division, War Department
Mr. Livesey, Financial Division, State Department
Messrs. Jernegan, Parker, Near Eastern Division, State Dept.
Mr. McGuire, Office of Adv. Int’l Eco. Affairs, State Dept.

Following the discussion on Near East Financial Policy held at the Treasury on July 15, 1943 (reported in full by Mr. Parker), this meeting was held to discuss further developments and to instruct Mr. Gunter, who was about to leave on a trip to Iran, Saudi Arabia and Turkey.

[Here follows section regarding Iran, printed on page 587.]

Regarding Saudi Arabia

Little new information was forthcoming on Saudi Arabia. It was reiterated that the Saudi Arabian problem consists of (1) the immediate need for silver coins, and (2) a long range program to help Saudi Arabia to establish a sound modern fiscal and monetary system. The Treasury is willing to Lend-Lease silver to the amount of 7,500,000 ozs. worth a little over $3,000,000. Mr. Gunter is to obtain King Ibn Saud’s guarantee that the silver will be returned in kind, as is required on all Lend-Lease transactions in silver. A complication arises from the fact that the dies from which the Saudi Arabian coins have been minted are in India. Since Indian mints are working to capacity, Mr. Bernstein suggested that we should be prepared to mint the coins in this country. It had been suggested that the dies now in India be flown to America, but Mr. Bernstein felt that the British might object to giving up the dies. Accordingly, Mr. Gunter was instructed to send sample coins by pouch, so that we could study the practicability of making dies from them.

[Page 881]

Mr. Parker made several suggestions as to how Mr. Gunter should proceed in dealing with King Ibn Saud. Mr. Moose, Minister at Jidda, will accompany Mr. Gunter on his visit to the King. Mr. Gunter was asked to talk with Dr. Feis84 of the State Department concerning certain aspects of our interests in Saudi Arabia.

It was agreed that Mr. Gunter should proceed first to Iran, then to Saudi Arabia, then to Turkey.

  1. Herbert Feis, Adviser on International Economic Affairs.↩