890F.24/8–1444: Telegram

The Minister Resident in Saudi Arabia (Moose) to the Secretary of State

247. Finance Minister advises that deputy Foreign Minister now in Cairo has arranged purchase from Egyptian Government of 10,000 tons of rice and other cereals and sugar delivered in Suez and asks help of American and British Governments in shipping cargo to Jidda.

Cost of foodstuffs will be paid from pilgrimage tariff items collected in Egypt. Part of same arrangement provides preferential riyal rate for use of Egyptian pilgrims in paying tariff items.

I recommend and my British colleague concurs that assistance be given insofar as MESC policy permits.

[Page 727]

This will be another lien on 1944 pilgrimage revenues reLegs 244, August 9, 2 p.m.30 Present purchase tends to show genuineness of Saudi Government’s belief that subsidy program of foodstuffs is inadequate.

Repeated to Cairo for AEMME.

Moose
  1. Not printed; it reported that the British firm of Gellatly, Hankey and Company had offered the Saudi Arabian Government a loan of £100,000 sterling at 6% with a minimum of 2½% repayable from foreign exchange proceeds of the 1944 pilgrimage (890F.515/8–944).