800.24/9–445

The Assistant Secretary of State ( Clayton ) to the Foreign Economic Administrator ( Crowley )

Dear Leo: The President has, as you know, agreed to the continuation of those special lend-lease programs to the fulfillment of which this Government was firmly committed prior to the termination directive of August 17.3

It is my understanding that this exception approved by the President authorized the continuation of three programs, the details of which are given below:

Saudi Arabia: The United States has outstanding commitments to the Government of Saudi Arabia to supply $8,870,000 worth of [Page 952] commodities and $2,500,000 worth of silver for coinage to that country. The program having been approved both by President Roosevelt and President Truman, the Saudi Arabian Government was informed in writing by Minister Eddy on July 28 [29], 19454 that this Government would share equally with the Government of Great Britain in a joint 10 million dollar supply program, and that the United States would provide Saudi Arabia with a supplementary supply program of six million dollars. This commitment was also given in person in Washington on August 1 [July 31], 1945, to the Foreign Minister of Saudi Arabia.

[Here follow details of the programs for Liberia and Italy.]

I shall appreciate confirmation of our interpretations of the President’s decision, and advice that the Foreign Economic Administration will fulfill the lend-lease programs noted above.5

Sincerely yours,

W. L. Clayton
  1. For text, see telegram 7012, August 18, 4 p.m., to London, vol. vi, p. 102.
  2. See despatch 161, July 30, from Jidda, p. 935.
  3. In his reply of September 18, 1945, to Mr. Clayton, Mr. Crowley stated: “I wish to advise you that the Foreign Economic Administration will be pleased to carry out the President’s instructions and fulfill the programs referred to in your letter.” (800.24/9–1845) In a letter of October 16, 1945, Mr. Arthur Paul, Executive Director of the Bureau of Areas, Foreign Economic Administration, informed Mr. Clayton that “We interpret the President’s instructions excepting Saudi Arabia from the termination of lend-lease to refer only to the 1945 program. Therefore it is clear that any future assistance to Saudi Arabia which may be considered desirable will have to be provided under arrangements not involving the use of lend-lease funds.” (890F.24/10–1645)