890F.24/11–2844: Telegram
The Secretary of State to the Minister in Saudi Arabia (Eddy)
268. Department considers that the basis of any joint supply program for 1945 is its adequacy in meeting the reasonable supply and budgetary needs of Saudi Arabia and that you should not concur in any proposals which in your judgment fail to meet this requirement (foregoing repeated to Landis).
You are authorized, therefore, in accordance with your recommendations (reLegs 354, November 28, 9 a.m.) (1) to defer discussion of joint supply program with Jordan until after your visit to the King, [Page 755] giving only the reasons stated in your 352;76 and (2) to insist upon joint discussion of budget with Saudi officials at the appropriate time.
In as much as Aramco considers that net royalty payments in 1945 will be no greater than in 1944, the question of what to do with any increase appears to be hypothetical. It is suggested, therefore, that budgetary estimates be based on the assumption that royalties next year will be the same as they are this year, and that if this assumption should prove incorrect, the question be decided at a later date if it should arise.
A decision regarding the second of your numbered recommendations necessarily must await future developments, including the extent of the aid this Government may be in a position to provide and the attitude to be adopted by the British with respect to reductions.
Landis is being requested to furnish Department with a copy of the MESC supply procurement summary to which you refer.