890F.248/12–2445: Telegram

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

430. After Yusuf Yassin had relayed to him summary of draft for SAG loan which Eximbank will submit to its board in January, [Page 989] and thereby ascertaining that he would have no definite word before he leaves on extended visit to Egypt, King directed that Giles and I speak with Yassin and did not suggest appointment with himself. Yassin informs me King may wish to see me this week and may not. Revision of agreement regarding Dhahran airport (Deptel 334, November 22) was presented in formal note60 and discussed in detail by Giles and me with Yassin, Abdullah Sulaiman and Asad al-Faqih. TWA not informed of these discussions but British Minister Jidda fully informed in advance.

Although entire matter is now before the King and he will send official reply comment by Saudi Ministers indicates:

1. Amendments to airport agreement can probably be negotiated successfully though it is obvious no agreement for operation after the Army relinquishes field until 1956 would be made with any one US company without provision for termination on adequate notice after a year or two if services of said company proved unsatisfactory to King.

In such case operation and maintenance would have to pass to another American company.

2. Situation regarding bilateral air agreement and fifth freedom rights has not changed. Only comment made was that so far British have maintained opposition. SAG is in touch with British Minister Jidda and is no doubt awaiting British concurrence.

3. In any case no reply to US has yet been made. The comments above are not inconclusive [conclusive?] and do not bind SAG.

Sent Dept repeated London.

Eddy
  1. Dated December 20; see bracketed note, p. 983.