890F.796/12–2045: Telegram

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

369. 1. Dept disturbed by report that TWA proposes 30-year monopoly charter from the King to do all transportation of persons, property and mail between points inside Arabia and points outside Arabia.

2. Neither Dept nor TWA here have details of negotiations being handled in Near East for TWA by General Wilson other than wire received by TWA that negotiations for Saudi Arabian air transport enterprise are proceeding satisfactorily. We had understood TWA was having discussions with SAG looking towards furnishing technicians, training and similar aid in event SAG wanted such technical advice on setting up Saudi Arabian air lines.

3. This Govt adheres to principle of non-exclusivity of foreign air rights by international air services. We would not permit any American company to get into any such monopolistic position as that suggested for TWA in paragraph 1 above. If any U.S. public official or private citizen allowed himself to be placed in that position, we would inform him it must be terminated.54

4. Please telegraph latest developments TWA-Saudi Arabian negotiations, repeating wire to London and Cairo.

5. Sent Jidda. Repeated to London as 10982 and to Cairo as 2348.

Acheson

[In note No. 287 on December 20, 1945, from the American Minister in Saudi Arabia to the Acting Minister for Foreign Affairs, Asad Al-Faqih,55 he recalled that by an exchange of letters signed at Riyadh on August 5 and 6, 1945,56 the King of Saudi Arabia had consented to [Page 984] the construction of an airfield at Dhahran by the United States Army to help in the common purpose of carrying on the war against Japan. Major construction efforts on the airfield had hardly started before the war against Japan had been concluded.

It was the belief of the United States that such an airfield at Dhahran could be completed for use in common peacetime interests, but this would require some revisions in the original agreement in order to make possible non-military operation of the field following the completion of the repatriation of soldiers and material from the theaters of war. The Minister, therefore, proposed certain revisions on behalf of the United States which would enable the construction of the field to be completed, its transfer immediately to the government of Saudi Arabia, and with provisions for its operation in accordance with the highest standards of safety.

Although the authorization from Congress for the expenditure of United States Army funds for war purposes had ended, the American Government had looked into the situation concerning the mutual long range interests that would allow the completion of an airport at Dhahran and had found out under what circumstances further funds could be appropriated for this construction.

1.
The conclusion between the two governments of the standard bilateral air transport agreement would be required, including full fifth freedom rights, as had been proposed in the United States note No. 247 dated September 10, 1945.56a Civilian airplanes could not operate successfully between the two countries without such agreement.
2.
The existing agreement for a United States airfield at Dhahran would need to be amended to contain these provisions:
(a)
The fixed installations of the airfield at Dhahran, as well as the fixed auxiliary installations at Lauqa and Hafar-al-Batin, will become the property of the Saudi Arabian Government as soon as construction is completed.
The only change here is the substitution of the date when construction is completed for the date of the cessation of hostilities against Japan.
(b)
The United States Army will be granted the exclusive right to operate and maintain the installations mentioned above, and the right to make use of them for as long after completion as needed by the United States Army up to a maximum of three years, and that the United States Army be granted the necessary air transit rights over routes agreed upon between the American and Saudi Arabian Governments for the same period.
The only change proposed here is the same as in paragraph (a).
(c)
Upon termination of control of the United States Army, the United States Government will turn over these installations in sound condition to the Saudi Arabian Government for operation, control and maintenance. That Government is to agree [Page 985] not to turn such responsibilities over to a third power nor its nationals without the prior concurrence of the United States Government.
There is no change here except the addition of the final phrase “without the prior concurrence of the United States Government”, and this makes it possible to disregard this provision if both parties agree to do so.
(d)
Upon the termination of control by the United States Army, an American company approved by both the United States and Saudi Arabian Governments will be permitted to operate the airfield for the Saudi Arabian Government on terms to be agreed upon by the Saudi Arabian Government and an American company, preferably before the date when the United States Army control is relinquished. The American company will have permission to operate the airfield until January 1, 1956, or until an earlier date when the Saudi Arabian Government shall have available trained technicians who, in the agreed opinion of the United States and Saudi Arabian Governments, are competent to operate the airfield according to minimum international standards.
The purpose of this proposed change is to assure a period of operation and maintenance of the field as a civil airfield with the highest standards of safety until such time as the Saudi Arabian Government has available properly trained personnel.
(e)
It is to be understood that the Saudi Arabian Government, if it so desires, may grant to planes of a nationality other than United States nationality transit and landing rights through Saudi Arabia similar to those accorded to American planes.
This proposal would extend the use of the airfield to planes of any nation as the Saudi Arabian Government may direct, during the interval of operation by Americans, rather than the restriction to planes engaged in the common Allied war effort.

The preceding proposals were also communicated to the British Government and its concurrence was requested. The proposals were made in accordance with the provision in the last paragraph of the original agreement. This specified that the United States Government at a later date would discuss the civilian use of the airport with the Saudi Arabian Government.]

  1. In telegram 10978, December 20, 1945, 10 p.m., the Acting Secretary of State (Acheson) directed the Ambassador in the United Kingdom to “make it clear immediately to appropriate British officials that this Govt would oppose entering by any American company into an agreement which would exclude air lines of other nationalities from conducting business with Saudi Arabia.” (890F.796/12–2045) This telegram was repeated to Cairo as No. 2347 and to Jidda as No. 370.
  2. Copy of note transmitted to the Department in despatch 198, January 3, 1946 from Jidda; received January 16, 1946.
  3. See enclosures 1 and 2 to despatch 162, August 8, 1945, from Jidda, pp. 946 and 949, respectively.
  4. Not printed.