890F.51/12–2845: Telegram

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

443. ReDepts 368, December 20. Preliminary draft of proposed Eximbank loan has been discussed informally with Foreign Minister who has informed King.

Dept will understand that delays and whittling down of amount of loan and its duration from 5 years to shortest period, necessitated by technicalities, are not convincing to SAG who fear that hostile elements and my own ineffectiveness are interfering with consummation of long-promised budgetary help. If there are any more amendments to terms of proposed loan, I earnestly hope they may be to make the terms more generous rather than otherwise. This is more than a bank transaction. It is a political commitment of long standing.

Dept will recall that its own thinking began with a 50 million dollar maximum loan and that apart from repeated deferment of action, I was assured at one time (Depts 131, May 7) that SAG 1946 needs would be taken care of one way or another. Now King faces period in early 1946 during which he cannot procure subsistence commodities until loan funds are available and deliveries can be made. For this last time I urge full and earliest action on loan in the interest of our entire position in Saudi Arabia. No visit to Yemen should precede such conclusive action.67

Eddy
  1. For documentation on the initiation of negotiations for the establishment of formal diplomatic and treaty relations between the United States and Yemen, see pp. 1312 ff.