890F.515/3–2345
The Acting Secretary of State to the Foreign Economic Administrator (Crowley)
My Dear Mr. Crowley: I refer to the Department’s letter of February 14, 1945, concerning lend-lease assistance to Saudi Arabia and the proposed continuation of the American-British joint supply program for that country during 1945.
The British Government has now proposed that any joint supply program for 1945 be fixed arbitrarily at approximately one-half the figure for 1944. The Department, on the other hand, is firmly of the opinion that Saudi Arabia’s minimum essential requirements must be met if American national interests in Saudi Arabia are to be safeguarded and if law and order are to be preserved there while oil is being produced for use in the prosecution of the war.
The Department desires to be in a position to inform the British Government that the United States Government is prepared itself to meet Saudi Arabia’s minimum essential requirements during the calendar year 1945 alone if necessary, but that British participation in a program designed to attain this objective will be welcomed either on an equal basis or to a lesser extent if so desired by the British Government.
It is requested, therefore, that the Foreign Economic Administration inform the Department that it is prepared to finance the entire Saudi Arabian supply program, including requirements for both goods and silver, during the calendar year 1945 up to the amount budgeted by the Foreign Economic Administration for such purposes for the eighteen-month period January 1, 1945–June 30, 1946, inclusive. It is appreciated, of course, that a relationship will exist between the rate of expenditure during 1945 and the ability of the Foreign Economic Administration to extend assistance during the first six months of 1946.
Although the cost of the supply program can not be determined accurately at the present time, it is estimated that a total sum of approximately $18,000,000 will be needed for this purpose during the calendar year 1945. The Department hopes, however, that funds from other sources will be available before the end of 1945 for the extension of assistance to Saudi Arabia.
Sincerely yours,