890F.51/3–1645: Telegram

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

82. [Here follows discussion of sale of gold by the Saudi Arabian Government to produce revenue, and of other factors affecting the Saudi Arabian budget.]

For your information also, after studying your despatches no. 63, January 31,53 and no. 77, March 2,54 the Department’s thinking tends towards acceptance of the SAG54a estimates of expenditures and revenues, except for revision of revenues as follows:

(a)
Royalties increased by $2,220,000 to $3,600,000 on information supplied by Aramco.
(b)
New item for seigniorage on 15,000,000 riyals (may actually be 17,000,000) in amount of 6,000,000 riyals, and new item for profit on conversion into gold, 3,000,000 riyals, or total increased revenue of 9,000,000 riyals or $2,700,000 from metals programs.

Total increased revenues from (a) and (b) would be $4,920,000, which would reduce SAG estimated deficit from $23,143,000 to $18,223,000. Your comments are requested.

Other adjustments might prove possible, if some trade could be returned to normal channels with less than dollar for dollar effect on SAG revenues from sales of supplies. Or perhaps SAG should be expected to sell a somewhat greater proportion of its supplies, in view of increasing employment of Arab labor by Aramco and SAMS. These are merely suggestions for your consideration. At present, pending further advice from you, Department considers $18,000,000 to be the total requirements of SAG for external assistance in 1945.

Sent to Jidda, repeated to Cairo.

Grew
  1. Not printed; but see footnote 16, p. 848.
  2. Not printed; but see footnote 19, p. 849.
  3. Saudi Arabian Government.