890F.6363/3–2147: Airgram

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

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A–66. Floyd Ohliger1 informs me that the deal by Aramco with the Standard Oil Company of New Jersey and Socony-Vacuum Oil Company has been concluded. The stock is being placed in escrow pending the judicial proceedings brought by the French in London. If the French win their case the deal will be declared off and the amount paid for the stock by the two American Companies named will be treated as a loan; in the contrary case the stock will be released to the companies. Vice President Suman of the Standard Oil Company of New Jersey and Vice President Case of Socony-Vacuum Oil Company visited King Ibn Saud this week and explained the details to His Majesty.

Childs
  1. An Aramco official.