Foreign Relations of the United States: Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

890F.51/2–1945: Telegram

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

Washington, February 19, 1945—7 p.m.

47. Export-Import Bank has been approached²¹ with respect to possible financing of essential development projects in [Saudi] Arabia. In this connection Wagner²² was asked whether he would be willing to have Twitchell²³ supply first hand information on possible projects which could be submitted for Export-Import Bank consideration. Wagner now wants Twitchell to airmail suggestions for three or four specific projects, listed in the order of importance to the Saudi Arab economy and interest to the King, according to Twitchell’s judgment. He should also give his best estimate of probable cost of each project listed, and any other details which he believes would be useful in determining feasibility of undertakings, such as labor and material requirements, engineering difficulties, et cetera.

The Legation is authorized to use its discretion in communicating the foregoing to Twitchell and in the transmission of his recommendations by official channels. In discussing this matter with Twitchell, its confidential character should be emphasized, and it should be made clear that the matter is not to be discussed with Saudi Arab officials.²⁴

Grew

21. In a memorandum of February 6, 1945, Paul F. McGuire of the Division of Financial and Monetary Affairs stated that Departmental officers met with the Export-Import Bank on February 2, 3, and 5 (890F.51/2–645).
22. Marcel Wagner, President of the American Eastern Corporation.
23. Karl E. Twitchell, representative of the American Eastern Corporation in Saudi Arabia, who had acted as an informal representative of King Ibn Saud in the United States and had headed the American Agricultural Mission to Saudi Arabia in 1942.
24. In despatch 79, March 3, 1945, the Minister in Saudi Arabia transmitted copy of a letter from Mr. Twitchell to Mr. Wagner, in which was outlined a number of development projects in Saudi Arabia for possible consideration by the Export-Import Bank (890F.51/3–345). In a memorandum of April 10, the Vice President of the Export-Import Bank (Whittemore) stated: “The Bank has received through the medium of the State Department a request for credits to Saudi Arabia to finance modest sized worth while development projects. Among those which have been suggested is a water system for Jidda, some roads and some reclamation projects. It is recommended that a credit of not to exceed $5,000,000 be authorized”, subject to various terms and conditions (890F.51/4–1045).