890F.51/54: Telegram
The Minister Resident in Saudi Arabia (Moose) to the Secretary of State
[Received August 7—6:15 p.m.]
82, Department’s 41, August 3, 9 p.m. implies that decision with regard to assistance has already been reached conditional upon certain assurances and guarantees by the King and it states that Mr. Gunter will discuss these conditions which are not believed to be onerous with the King personally.
The British are still working on their plan for a Saudi note issue but there has been nothing to indicate that the Saudi Government will soon make commitments in this connection.
To have some reasonable expectation of success however in preventing undesirable developments which might threaten it is requested that I be authorized at any time in my discretion to divulge the sense of the first paragraph of this telegram, if correct, to the King.
The King ordinarily begins distribution of silver to the tribes about the middle of the month of Ramadhan, that is in about 6 weeks time and the already urgent need for silver will then become more acute. Najib Salha who has just returned from Riyadh tells me that the local government is entirely without silver. It is likely that this need in addition to currency problems previously mentioned will be solved by more British gold with which to buy silver locally at speculative prices. I shall be glad to lend advice and assistance to Mr. Gunter but such advice will be of doubtful value unless based on a full knowledge of the Department’s plans.
[Page 889]When approaching local authorities about the forthcoming visit to the King it is assumed that the Department desires me to represent that I have been instructed to make an official visit to the King and that Mr. Gunter, a Treasury expert, will accompany me to take part in the conversations.
Cairo has not yet reported any suitable gift obtainable there.
Repeated to Cairo.