890F.0011/8–845: Telegram

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

235. Amir Faisal and party sailed Queen Mary August 5 for Britain following satisfactory completion 2 days conversations in Washington. Practically every phase American Saudi Arabian relations discussed either in two talks with Mr. Grew or in series of conversations in Mr. Henderson’s office in which interested political, economic, and cultural officials of Dept, army officers, and executives of TWA,84 participated.

Topics covered included85

Presentation of joint American-British supply program for 1945;
Presentation of supplemental U.S. supply program for 1945;
Discussion of Lend-Lease problems including mutual benefits of signing Lend-Lease agreements;
Willingness of the US to provide $5,000,000 development loan through Export-Import Bank;
Assurances that US is working on problem of financial aid to carry Saudi Arabian government until oil royalties mature;
Petroleum problems, particularly the future of Saudi Arabian oil:
Communications, especially desirability of having Saudi Arabian government construct radio station.
Army plans for Dhahran airfield and related facilities along air route. Army stated it might subcontract field, perhaps to TWA, prior to expiration of 3-year period.
TWA proposal to operate airfield when Army passes title to Saudis;
Background on international air agreements between US and other countries, and proposal that SAG and US sign such an agreement.
Aspects of US commercial policy, particularly with reference to a possible new treaty of commerce, friendship and navigation.
Proposed US clinic at Jidda.86
Plans to construct US consulate building at Dhahran.
Possible use of funds from development loan to finance continuation of Al Kharj project.

Transcript of these conversations being sent you by air pouch.87

Faisal expressed closest friendship for US and appreciation of our aid. Refusal of US military mission was on his mind particularly and he justified turndown for reasons outlined by you88 but emphasized that King has not refused civilian services.

Nothing official said re establishment Saudi Legation in Washington but remarks made suggest this will be done within 6 months.

  1. Transcontinental & Western Air, Inc.
  2. For documentation on several of these topics, see pp. 49 ff., pp. 845 ff., pp. 1009 ff., and pp. 1032 ff.
  3. In 1945, the Department of State entered a contract with the American University at Beirut under which the University agreed to act as scientific agent for the clinic, receiving funds, advising on equipment, assisting in the selection of physicians, and the like. In telegram 194, July 9, 1945, the Department advised the Minister in Saudi Arabia it had approved a grant of $54,700 to the University, of which $16,500 was for the establishment of the clinic and $19,100 for each of 2 years’ running expenses (890F.1281/7–945). In the conversations on August 1, 1945, the Amir Faisal was informed that an official of the University’s School of Medicine was in Jidda to discuss with the Saudi Arabian Government, through Colonel Eddy, arrangements for organizing the clinic.
  4. Not printed; a copy was sent to the Minister in Saudi Arabia under instruction 336, August 17, 1945, for delivery to the Amir Faisal.
  5. In despatch 150, July 8, p. 923; see also telegram 35, July 4, midnight, from Dhahran, p. 920.