890F.20 Missions/11: Telegram
The Secretary of State to the Minister Resident in Saudi Arabia (Moose)
93. The following is for your confidential background information only:
It has been agreed, as a result of the preliminary petroleum discussions just concluded in Washington between American and British officials,98 that the proposed oil agreement between this Government and the British Government should contain a clause providing that each Government and its nationals shall respect all valid concessions, contracts and rights lawfully acquired and shall not attempt unilaterally to interfere with such contracts or rights either directly or indirectly. If this clause is included in the final agreement, which now appears likely, it is considered that a material contribution will have been made to the protection of the American oil concession and interests in Saudi Arabia. You may wish to consider this development in connection with the suggestion made in your 138, April 30, 7 p.m., to the effect that American interests in Saudi Arabia can be safeguarded adequately only if the Government is prepared to assume the entire responsibility of providing financial aid and supplies to Saudi Arabia.
In view of the President’s approval of the Department’s recommendation referred to in Department’s 58, April 13, 7 p.m., and developments arising out of conversations between Mr. Wallace Murray and Sir Maurice Peterson in London reported to you in subsequent telegrams, [Page 699] the Department proposes to endeavor to work out with the British a program for the extension of joint assistance to Saudi Arabia on a substantially 50–50 over-all basis. It is considered that it would be consistent with this policy for a British officer to head a joint military mission and for an American to head a financial and economic mission. It is hoped, therefore, that the Department, together with the War Department, may be able to arrange with the British and with King Ibn Saud for a joint military mission, taking into consideration the developments reported in your 144, May 3, 4 p.m., of a character that would not embarrass Colonel Shomber or reflect upon American prestige.
- For correspondence regarding these discussions, see vol. iii, pp. 94 ff.↩