890F.515/4–1645: Telegram

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

167. ReDepts 105, April 7, 7 p.m.71 Saudi Government requests as special favor that gold slugs be flown out by airplane when ready May 15 as was done with first shipment received December 2, 1944.72

Comment: I recommend this request be granted, taking the liberty to remind the Department that Saudi Government has not yet any definite assurance as to amount or duration of joint subsidy and has heard nothing of progress on the subject of Department’s 283, December 24, 2 p.m.73 Riyal deliveries will probably be late, first supply of gold long since exhausted, and purchasing power will be sorely needed to furnish free food to oases eaten out by locusts. (Legs 164, April 15, 9 a.m. [p.m.]74) Since gold has been proposed by Department as important means of assistance during 1945 (Department’s 82, March 22, 3 [7] p.m.) this early delivery by air seems reasonable. Furthermore early plans now for subsequent minting of slugs could assure delivery by surface vessel at intervals of 3 months whereas even air delivery this time makes interval 5 months since first delivery. Finally gold being the form of assistance by USA which has actually materialized as distinct from other proposals merely pending I recommend it be exploited. Our political position and our economic claims need all the present support that can be given.

Eddy
  1. Not printed.
  2. In telegram 276, September 12, 1944. 9 a.m., the Minister in Saudi Arabia reported a request from the Saudi Arabian Government for the purchase of gold bars worth $1,000,000 (890F.515/9–1244). In telegram 370, December 15, 1944, the Minister transmitted the expression of gratitude of the Saudi Arabian Government for the shipment of gold bars which had been received at a time of economic crisis. This message also transmitted the Government’s order for a second shipment of gold equal in value to the first and in the form of round pieces with milled edges (890F.515/12–1544). This shipment arrived by plane on May 29 and was delivered the same day.
  3. Foreign Relations, 1944, vol. v, p. 759.
  4. Not printed; it stated: “Saudi Government has addressed to both American and British Ministers appeal for increase in foodstuffs to be procured for Saudi Arabia during 1945 to offset catastrophic loss of crops from current infestation of locusts … I recommend immediate steps to provide substantial increase in cereals for Saudi Arabia Government with early provision for increased quotas at loading areas to prevent fatal delay. My British colleague is sending similar recommendation.” (890F.48/4–1545)