890F.24/185: Telegram
The Chargé in Egypt (Jacobs) to the Secretary of State
[Received June 9—10:50 a.m.]
1563. To Acheson and Crowley from Landis. British have sent following paraphrased cable to Foreign Office:
“Talks with Landis have centered about possible devices for putting into effect 50–50 sharing in assistance to Saudi Arabia from year’s beginning. Agreement is had on undesirability because of shipping and supply considerations of major switching of sources of supply. Two other courses remain. First is for Americans to pay us in dollars and second is for us to receive credit from Americans by way of reciprocal aid. First poses difficulties for Americans and we may have technical objections to the second. We assume you will discuss this problem with United States Treasury. Transfer of title to the commodities [Page 704] supplied under the British subsidy is not required by either alternative if we agree in making a joint declaration to Ibn Saud that all help rendered him from the start of the year was done so equally by United Kingdom and United States. If deliveries can now be made under cover of such a declaration, it would not be important who made them. The only question would then be an accounting question. On this question you will note that our subsidy is a free gift whereas subsidy from United States is lend-lease. Especially significant is this with regard to lend-lease silver which is normally repayable in kind after the war. Provided agreement is reached with Americans on general question of aid to Saudi Arabia as set forth in our earlier cable, we hope Jordan will be instructed to join with the United States Minister in making the declaration referred to above. Settlement of the accounting question can be had thereafter.[”]
I am in accord with the general approach set forth in this telegram. [Landis.]