890F.51/1–2445: Telegram

The Acting Secretary of State to the Minister in Saudi Arabia (Eddy)

27. The Department would appreciate amplification of Saudi budget figures contained in Legation’s 33, January 24, 5 p.m.16 or comment thereon.

The only feasible method of providing assistance to Saudi Arabia in the first half of 1945 would appear to be a continuation of the same general procedure used in 1944. You are authorized in your discretion therefore to discuss with your British colleague such assistance as may be necessary to meet the 1945 supply, budgetary and currency requirements of Saudi Arabia, taking into account: (1) MESC appraisal of Saudi import needs, (2) the proposed continuation of 1944 joint supply program at same level through first half of 1945, and (3) 1944 budget figures and 1945 estimates furnished by Saudi Government.

Wherever necessary discussions may extend to entire calendar year 1945 but separate recommendations should be made for first half of year. You are authorized to bring the appropriate Saudi officials into the discussions to the extent you deem advisable.

Grew
  1. Not printed; it reported, in millions of riyals, budget figures furnished by the Saudi Arabian Ministry for Foreign Affairs, as follows: for 1944, expenditures of 143.5 and income of 137.9, of which 94.6 represented British and American subsidies; and estimates for 1945 of expenditures of 114.3, including the 1944 deficit of 5.6, and income of 81.5, of which 43.6 were to be British and American subsidies (890F.51/1–2445). The Saudi Arabian statement, dated January 19, 1945, was transmitted to the Department in despatch 63, January 31, not printed.