890F.515/6–1145: Telegram
The Acting Secretary of State to the Minister in Saudi Arabia (Eddy)
173. ReLegs 236, June 11.34 If agreements signed promptly, first resale riyals should arrive by September 1. No decision yet on amount of credit lend-lease riyals, although likely only 10 million riyals will be provided including half and quarter riyals, and not 15 million as MinFonAff originally requested. You may not wish to mention reduction in amount until whole assistance program is presented. But you should inform MinFonAff that no arrangements can be made on credit riyals until after Congress approves lend-lease budget. If approval received we will work toward delivery of credit riyals by November 1, in time for pilgrimage.
You should inform MinFonAff that U.S. Government has provided no dollar credits to merchants of Iraq, Egypt or Lebanon. He may be referring to dollar quotas established by British for Egypt and Iraq, and a similar quota which may be established by French for Levant States. Such dollars must be purchased with sterling owned by Egypt and Iraq, or French francs owned by Levant States. Doubtful if British would sell dollars to Saudi Arabia against sterling even if SAG had surplus sterling, since Saudi Arabia is not a member of the sterling bloc. MinFonAff should be referred to British Minister.
- Not printed.↩