890F.515/72: Telegram
The Chargé in Saudi Arabia (Shullaw) to the Secretary of State
[Received December 2—11 a.m.]
199. Department’s 106, November 26, 3 p.m. British Government is continuing subsidies to Saudi Arabia during 1943 despite lend-leasing of silver. Discussions between Saudi officials and British on 1944 financing will begin after hajj. According to Najib Salha Saudi Government intends to rely on British for financing of expenditures abroad through sterling subsidy while the UA [USA?] will be looked to for internal currency needs. Najib estimates Saudi Arabia will require during 1944 approximately 25,000,000 new rials.
Despite scheduled delivery in 1943 of 15,000,000 rials under lend lease Saudi deficit for year expected to approximate 1,000,000 rials. This year’s budget was based on supply of 25000,000 rials from British and additional sum of 20,000,000 rials to be realized by Government from resale of goods. British delivered 5,000,000 rials and 400,000 pounds gold in lieu of balance but due to appreciation of rial sale of gold in Jidda market failed to realize anticipated number of rials. Further deficit resulted from fact larger proportion than expected of goods imported by Government were distributed free as charity.
Repeated to Cairo.