890F.24/3–1445: Telegram

The Acting Secretary of State to the Minister in Egypt (Tuck)

652. ReLegs 643, March 14, 3 a.m.49 For Hoskins50 and Dawson.51 On March 14 Department and FEA representatives met with British [Page 864] officials to discuss possibilities of a joint Saudi Arabian supply program for 1945. British on instructions from London proposed cutting extent of joint aid arbitrarily in half; Department on the other hand insisted that Saudi Arabia’s minimum essential needs, both supply and budgetary, must be met, taking into consideration what merchants may be reasonably expected to import through commercial channels. British are reporting our view to London requesting instructions. If London accepts our view, it is contemplated that Eddy will be instructed to confer with British Minister and submit recommendations and factual statements as to what these minimum essential needs are.

It is believed it may prove helpful to attempt to define the functions, as we see them, of the various groups concerned with a joint supply program for Saudi Arabia:

1.
MESC shall determine, just as is done with respect to all other territories, over-all total Saudi Arabian imports, of which the joint supply program would form a part.
2.
Department, together with FEA, in consultation with the British in Washington will determine principles upon which joint program is to be based.
3.
Eddy, presumably after consultation with British Minister, will provide Department with facts, figures and information needed to translate the principles agreed upon into actual aid (to determine, for example, what are the minimum essential needs to be met under a joint program and what specifically is required to meet these needs). In compiling this factual information Eddy may call upon American economic officials in Cairo for such assistance as he desires and Cairo will cooperate fully in complying with his requests.
4.
Upon receipt of factual information and recommendations from Eddy, Department, together with FEA, will seek agreement with British in Washington on actual program based on Eddy’s findings, to which British Minister at Jidda presumably will have agreed.
5.
After specific program is agreed upon, FEA and American economic officials in Cairo, in conjunction with MESC, will arrange for sources of supply, effect deliveries and maintain delivery schedules.
6.
Eddy and Cairo should keep each other and Department fully informed of their activities with respect to aspects of the program for which they have primary responsibility.
6.
[sic] Although policies and general principles will be determined in Washington, Eddy and also American economic officials in Cairo should feel free at all times to make recommendations and offer suggestions in regard thereto to Department.

Sent to Cairo, repeated to Jidda.52

Acheson
  1. Not printed.
  2. Lt Col. Harold B. Hoskins. Adviser on Economic Affairs, assigned concurrently to Missions in Egypt, Ethiopia, Iran, Iraq, Lebanon, and Saudi Arabia: resident at Cairo.
  3. John P. Dawson, Special Representative of the Foreign Economic Administration at Cairo.
  4. As telegram 80.