102.1/9–1444: Telegram
The Secretary of State to the Appointed Minister to Saudi Arabia (Eddy)54
180. From Treasury. The following is the text of the letter to be sent to the Honorable Henry Morgenthau, Jr., Secretary of the Treasury:
“Reference is made to previous communications between representatives of our respective Governments relative to the vital need of Saudi Arabia for a supply of silver for coinage purposes.
“Accordingly, I request, on behalf of His Majesty the King of Saudi Arabia, that you will be so kind as to inform the Foreign Economic Administration that the need of Saudi Arabia for silver for coinage purposes during the balance of the calendar year 1944 may be met to the extent of 3,437,500 ounces of silver from the stocks of silver of the United States Treasury. I also request, subject to the mutual convenience of the United States and Saudi Arabia, that this silver be made available to Saudi Arabia as soon as possible.
“I am prepared, on behalf of His Majesty the King of Saudi Arabia, to transmit to the Foreign Economic Administration requests of Saudi Arabia for the above mentioned silver and the agreement of Saudi Arabia to return to the United States Treasury within 5 years after the end of the existing emergency as determined by the President of the United States, an amount of silver bullion in an equivalent or higher fineness and equivalent in quantity and form to the total number of ounces of silver transferred to Saudi Arabia under the Act of March 11, 1941,55 from the stocks of the United States Treasury silver, provided, however, that if conditions of the world supply of silver make it advisable, such period may be extended by agreement of both Governments for an additional 2 years.
Respectfully yours”
The following is the text of the letter to be sent to the Honorable Leo T. Crowley, Administrator of the Foreign Economic Administration:
“His Majesty the King of Saudi Arabia, through (name), (title), hereby requests the Foreign Economic Administration to supply as soon as possible 3,437,500 ounces of silver under the Act of March 11, 1941, from the stocks of the United States Treasury silver.
“I hereby agree on behalf of His Majesty the King of Saudi Arabia that Saudi Arabia shall return to the United States Treasury within 5 years after the end of the existing emergency, as determined by the President of the United States, an amount of silver bullion in an equivalent or higher fineness and equivalent in quantity and form to the total number of ounces of silver transferred to Saudi Arabia under the Act of March 11, 1941, from the stocks of the United States Treasury silver, provided, however, that if conditions of the world [Page 741] supply of silver make it advisable, such period may be extended by agreement of both Governments for an additional 2 years.
Respectfully yours,”
It may be advisable to explain that the change in language in the agreement for return of the silver is being made in all lend-lease silver agreements to assure the return of all lend-lease silver in the form and fineness in which it was made available. It should be made clear that irrespective of whether the United States lend-leases, or Saudi Arabia pays for, the cost of minting and shipping, all silver is lend-leased to Saudi Arabia in bullion form and that the provision for return refers to the form and fineness of the silver as bullion and not as coin.
You should explain that the cost of any minting and shipping services furnished by the United States Government in connection with the silver lend-leased will be charged to the account of Saudi Arabia under the Lend-Lease Act, as a credit Lend Lease item. [Treasury.]