890F.51/52d: Telegram
The Secretary of State to the Minister Resident in Saudi Arabia (Moose)
37. Mr. John W. Gunter, a representative of the Treasury Department, will depart from the United States by air within the next few days for Jidda in order to obtain for the Treasury first-hand information regarding the Saudi Arabian financial situation and to ascertain what arrangements this Government can make with King Ibn Saud (1) to provide silver to meet immediate currency needs and (2) to assist the Saudi Arabian Government in working out a sound long-range currency plan. Although Mr. Gunter will not be authorized to make any definite commitments on behalf of this Government, it is contemplated that he will explore the situation thoroughly with the King and other Saudi Arabian officials and will consult with Casoc officials.
Mr. Gunter has been instructed to work very closely with you in regard to these matters and you should, of course, give him all appropriate advice and assistance. You should accompany him personally when he visits the King and upon all other occasions when considered advisable.
It is desired to avoid all publicity regarding this mission, both before and after Mr. Gunter’s arrival. He will be en route to other points in the Near East and his visit to Saudi Arabia may be explained [Page 882] as for the purpose of examining and reporting on the silver currency shortage in respect of which this Government’s aid in making silver available has been requested.
In view of Mr. Gunter’s visit and the prospective contribution that this country may be able to make to the satisfactory handling of Saudi Arabia’s monetary questions, it would appear highly desirable that the Saudi Arabian Government undertake no arrangements in the monetary field which would prevent or make more difficult the working out of satisfactory arrangement with the United States. You are instructed to assure that this does not happen.
Further details regarding Mr. Gunter’s trip will be telegraphed to you subsequently.