The Acting Secretary of State to the United States Delegation at the United Nations General Assembly, at Paris
Dept has consistently favored and encouraged Iraqi approach World Bank, but little or no progress made due failure on part Iraq to complete application to Bank or show initiative or energy in presenting case to Bank. Dept has repeatedly expressed view to Iraqis that World Bank is logical source financial assistance and that national development projects are appropriate subjects for such assistance (Delga 908 Nov 24).
Dept has no knowledge Iraqi application Exim Bank credit. If and when application made by Iraq or any Arab country, case will be considered on basis individual merit in conformity rules and legislation governing such loans. You may know Saudi Arab Govt although granted Exim loan3 has indicated intention nonutilization.
You may explain to Khanadan that subject loan is complicated one and this Govt in no position offer economic assistance or promises of assistance in out-of-hand manner suggested. You may advise him Dept would be glad discuss general subject at any time through approach Embassy Baghdad or through Iraqi Embassy Washington.4 [Satterthwaite.]
- Not printed; it noted recent criticism from Foreign Minister Jawdat of the failure of the United States to offer any tangible assistance to Iraq and of American unwillingness to divorce the question of economic and financial aid to Iraq from the political problem of Palestine (890G.00/10–3048).↩
- Neither printed.↩
- Documentation on this subject is included in the section on Saudi Arabia in this volume.↩
- This telegram was repeated to London.↩