890F.51/53: Telegram
The Secretary of State to the Minister Resident in Saudi Arabia (Moose)
41. Your 75, July 29, 6 p.m. In as much as the extension of American financial aid to Saudi Arabia will involve financial operations on the part of the Treasury Department, the Treasury desires to secure first-hand information from one of its own experts who is thoroughly familiar with Treasury procedure and governing domestic law. The Department has been gratified by the Treasury’s interest in Saudi Arabian financial matters and, aware of the Treasury’s responsibility for the wise and prudent administration of public funds consonant with the national interest, desires to cooperate fully in assisting the Treasury to discharge this responsibility.
The extension of financial assistance to Saudi Arabia necessarily will involve certain guarantees and assurances on the part of the Saudi Arabian Government which it is believed the Saudi Arabian Government will not find unduly onerous. These matters, however, appear to involve decisions which only King Ibn Saud himself can make. It is considered desirable, therefore, that Mr. Gunter, who is conversant with the type of guarantees and assurances which the Treasury regards as necessary, should discuss the matters personally with the King and that you accompany him on his visit to lend advice and assistance.
Matters relating to a suitable gift for the King are being made the subject of a separate telegram from the Department.
As you know, foreign economic interests in Saudi Arabia are overwhelmingly American in character. In view of that fact and having in mind proposals which have been made in the past for the establishment of a branch of Barclay’s Bank in Jidda and of a Saudi Arabian currency board in London, the Department desires you to ensure that Saudi Arabia does not involve itself in long-term financial arrangements with other countries before Gunter’s conversation with the King and the formulation of a suitable plan for the extension of financial aid by this Government.
Since Gunter has been instructed to submit his report by telegraph before departing from Saudi Arabia, it is not believed that his investigation will occasion undue delay in the formulation of such a plan.