501.BB Palestine/4–2248: Telegram

The Acting Secretary of State to the Embassy in Iraq

secret

117. Cirtel April 22. Reference is made in this connection to assistance which Iraq Govt has informally requested in relation to serious politico-economic situation described Embtel 288 April 17.1 Dept views this situation with deep concern and requests you express our feelings this sense to Regent and other officials with whom you discuss matter adding our hope that situation may soon be alleviated. You should, however, point out that while USGovt is sincerely desirous of being of assistance, it would be difficult for USGovt to give consideration to appropriate measures in this respect as long as Palestine question remains unsettled. (Reference last two substantive paras cirtel April 21 [22]2)

Sent to Baghdad for action; repeated to Beirut 179, Damascus 127, Jerusalem 285, Jidda 140, Cairo 449, London 1445, Paris 1345 and to New York 243 for info.

Lovett
  1. Not printed; Ambassador Wadsworth described the Iraqi situation as “seriously disturbing”, citing drought conditions, crop failure, bread shortages and riots, soaring food costs, unseasonable unemployment, and strikes. He advised that the Foreign Minister, a fortnight ago, had requested United States support of an Iraqi application to the Food and Agriculture Organization for 40,000 tons of cereals and that the Prime Minister had discussed with the Ambassador the possibility of a dollar loan or a dollar advance by American oil companies against future royalties (501.BB Palestine/4–1748).
  2. The Department, on April 22, sent telegram 180, of similar import to Beirut, repeated to Baghdad, Jidda, and other posts, in connection with “recent informal approaches by Lebanese Legation to Dept in connection with plans for carrying out broad program for development of agricultural, hydro-electric and other resources of Lebanon.” (501.BB Palestine/4–2248) The approaches were made in an undated memorandum by the Lebanese Legation and were received in the Division of Near Eastern Affairs on April 9 (890E.61/4–948).