890F.612/6–1645: Airgram

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

A–52. Re ur A–53 June 16 and Depts instruction No. 347, dated Sept 4, 1945 on the subject of the future of the US Agricultural Mission at Al Kharj. When Prince Faisal was in Washington on August 1, 1945 he was informed that the Government of the United States would extend a 5 million dollar development loan to the Government of Saudi Arabia through the Export-Import Bank. Prince Faisal was also told that if the Government of Saudi Arabia so desired, the [Page 953] Government of the United States would look with favor on the use of funds provided by this Export-Import Bank loan to continue and expand the work of the US Agricultural Mission at Al Kharj, which cannot be continued on its present basis beyond the expiration of the present contract.

Will you sound out the Government of Saudi Arabia as to whether or not it wishes to continue the US Agricultural Mission with funds provided through the Export-Import Bank loan. If an affirmative answer is received, Rogers and the other experts should propose to the King the agricultural program recommended for a given period of years, together with estimates of personnel, required equipment, and cost. If the King, Rogers, and you agree upon plans for an agricultural program,6 the Department will take up with the Export-Import Bank the question of obtaining part of the funds provided by the 5 million dollar development loan for this purpose.

Acheson
  1. In airgram A–58, October 25, 1945, to Jidda, the Department stated that the personnel of the Agricultural Mission had been transferred to the Department of State (112/10–2545). A meeting on the future of the mission was held by Department officers, Colonel Eddy, and personnel of the Foreign Economic Administration on October 30. The memorandum of this conversation by Richard H. Sanger of the Division of Near Eastern Affairs stated “It was agreed that the mission should be continued after June 30, 1946, when the contracts of the present members of the mission expire.” (890F.61A/10–3045) The FEA Mission at al-Kharj was terminated in June 1946 with the return of American personnel to the United States. The work of the project was continued thereafter, by the Arabian American Oil company.