890F.5151/7–1344: Telegram
The Minister Resident in Saudi Arabia (Moose) to the Secretary of State
[Received 10:50 p.m.]
206. Refer Cairo’s 1670, June 18, 10 a.m., and my 175, June 22, 10 p.m. To remedy unfavorable local rate for foreign exchange Saudi Government has suggested firstly borrowing foreign exchange for current sale to importers at official rate and repaying loan from foreign exchange proceeds of 1944 pilgrimage or, secondly, permitting exportation of gold from Arabia conditional upon undertaking of exporter to import counter value in approved merchandise within specified period.
Acting Foreign Minister has referred question to this Legation and to British Legation since both Legations are interested in Saudi finance and supply. He would like to have comment of United States and British Governments on both plans and wishes to know if there are any objections. He has not asked assistance on first plan but probably would have done so had he not been discouraged therefrom.
A decree setting up the second plan has been drafted but not yet issued.