890F.515/38: Telegram
The Minister Resident in Saudi Arabia (Moose) to the Secretary of State
[Received September 10—7:50 a.m.]
117. Department’s 62, September 7, 3 p.m. My suggestion that decree not be insisted upon referred to the last sentence of Cairo’s 1572, September 1, 10 a.m., and was intended to suggest other method of confirmation though I have now inquired about that possibility. Suggestion was based on belief that King might not wish to issue and publish decree relation [relating] to lease-lend silver when, as British Chargé d’Affaires has informed me, British Government accepts Saudi Ministerial signatures without confirmation as sufficient on all documents relating to British advances of gold, silver, sterling credits and supplies.
In view of personal nature of King Ibn Saud’s rule and firmly established principle that no important action can be taken by any of his Ministers without prior Royal approval King’s assent is in fact requisite to any contract signed by a Minister. Acting Foreign Minister, Shaikh Yusuf Yassin, advises that limitation on Ministers’ acts is imposed by law. Since Department wishes to make the contract as binding as possible however it would appear that King’s specific agreement should be obtained. Form of such agreement would seem to be immaterial so long as it is clear and unequivocal.
Problem of proper signature was today discussed with Shaikh Yusuf who also thought King would not wish to sign contract personally. Two alternatives were discussed (1) that after signing by Minister the King should confirm contract by published decree or (2) that King, after being apprised of terms of contract, should in writing authorize a Minister to sign describing contract in sufficient detail to identify it and that such authorization should be annexed to contract [Page 897] when forwarded to Washington. Latter course would not necessarily involve publication of contract.
Shaikh Yusuf is referring question to the King and will report what course or courses are acceptable to Ibn Saud. Shaikh Yusuf holds personal opinion that need for silver is urgent enough that problems of procedure will be easily solved.
Shaikh Yusuf is proceeding to Riyadh in a day or two to attend presentation of credentials by new British Minister. Any discussions in Jidda with respect to silver may therefore be carried out with Acting Finance Minister or with Ibrahim Suleiman, chief of Amir Faisal’s diwan. In my opinion this is a favorable development. British Minister Designate hopes to leave Jidda tomorrow and to be in Riyadh September 15 to 22. All dates are tentative.