890F.51/53: Telegram
The Minister Resident in Saudi Arabia (Moose) to the Secretary of State
[Received July 30—1:12 a.m.]
75. Department’s 37, July 28 [26], 3 [10] p.m. Over a year ago Sir Francis Rugman, finance official of the Sudan Government, came to Jidda to obtain first hand information about Saudi finances for use in determining extent and kind of British aid to local Government. Negotiations extended over period of several weeks with British Minister and Rugman representing Great Britain while Shaikh Yusuf Yassin, Shaikh Abdullah Suleiman and Najib Salha represented Saudi Arabia. Rugman submitted to London full report on Saudi finances embodying all available information but woefully deficient in statistical data. That report is still currently applicable except that Great Britain is no longer able to supply silver. Needs of local [Page 883] government for silver are even more urgent now than then. Since any American assistance it is assumed will be correlated with British aid the Department might consider the saving of time and other advantages which would result from discussions between a Treasury official attached to the Embassy in London and the British Treasury and Foreign Office before Mr. Gunter makes a trip to Arabia.
The two Saudi officials who can supply information about Saudi finances are Shaikh Abdullah Suleiman and Najib Salha. The former is Minister of Finance. Shaikh Abdullah is in India and is not expected to return to Arabia for two months. Najib is in Riyadh but intends to go to Cairo for undetermined period on or before August 20. Although any agreement will require the King’s approval there is good reason to believe that he will know few details of interest to Gunter. He has not heretofore personally discussed details of financial assistance and he very likely will not do so now. Lebkicher, the Casoc official who has been most closely associated with Saudi currency problems intends to come to Jidda from Dhahran in September for a stay of some months.
If after securing all available data from British either by having Mr. Gunter go to London or through Treasury Department officials already there the Department still desires Mr. Gunter to seek further details he might profit from discussions with Rugman in Khartoum, Najib in Cairo, Shaikh Abdullah in India and Lebkicher in Jidda. For reasons indicated above it is doubtful that a visit by Mr. Gunter to the King before a definite plan has been drawn up would lead to any profitable result. A courtesy call would be necessary of course if Gunter were to pass through Riyadh en route between Jidda and Dhahran.
Having considered the foregoing should the Department still wish me to accompany Mr. Gunter on a visit to Riyadh it is urged that he bring with him a pair of Griffin and Howe Springfield sporting rifles with telescopic sights and some other easily transportable gift suitable for me to present to the King. Telephone and heavy equipment could follow. My first appearance before the King as Minister Resident empty handed would produce an unfavorable impression.
With regard to third paragraph of Department’s message local government has asked for a fourth hundred thousand sovereigns from the British but request not yet approved. No other monetary arrangements are known to be in immediate prospect. It would be appreciated if the Department would be more explicit in what I am to prevent and how I am to prevent it.
The local authorities will be disappointed when they learn of the delay in reaching a decision with regard to silver which is implicit in Mr. Gunter’s projected visit.