886A.2553/11–650
Memorandum of Conversation, by Mr. H. Earle Russell of the Office of Near Eastern Affairs
Subject: Visit of Sheikh Asad al Faqih
| Participants: | Sheikh Asad al Faqih—Saudi Arabian Ambassador |
| Mr. Fred H. Awalt, NE | |
| Mr. H. Earle Russell, Jr., NE |
Summary:
Sheikh Asad called to discuss SAG–Aramco relations. He reviewed the position he had taken with Aramco officials on October 26,1 stressing that his government was serious in its demands for revision of the Aramco concession. He suggested the formation of a partnership arrangement between the Company and the SAG. He pointed out that the elaborate charts and figures which Aramco officials had presented to him in support of their resistance to concessions failed to indicate the Company’s known ability to pay more.
Mr. Awalt stated that the Department could appreciate that a 66-year agreement could reasonably be expected to need modification during its life as circumstances changed. He added that the Ambassador’s strong stand in his conversations with Aramco officials had undoubtedly been very useful in convincing the Company’s Board of Directors that the SAG was serious in its demands. He also expressed satisfaction that the negotiations would be held with the Company at Jidda. The Ambassador stated that that was necessary for ready reference to the King and other authorities, and also because holding them outside Saudi Arabia would create a poor impression at home.
Mr. Awalt reviewed the Department’s views by saying that we had no objection to the negotiations, but emphasized that we should like to see the SAG regularize its financial practices before making far-reaching demands for more money. He noted in this connection that there were recent indications that the SAG desires to undertake a real financial reorganization. (Jidda Telegram No. 274 of November 4)2 He also expressed the hope that both sides would maintain a reasonable attitude throughout the negotiations.
The Ambassador was asked if there was any news concerning the proposed SAG–UK conference scheduled for some time after November 20 to discuss; island claims. Sheikh Asad replied that he has been unable to follow this subject very closely due to his current activities in the UN.
[Page 111]In conclusion, the Saudi Arabian Ambassador brought up the subject of the Arab refugees which will soon be discussed in the UN. He pointed out that Arab interests are closely allied to those of the United States and of the West and cited as an example Saudi Arabian support of the United Action for Peace resolution. He also cited our common interest in the support of Arab refugees toward which both the United States and Saudi Arabia had made such material contributions. He said that Saudi Arabia advocated the implementation of the GA resolution permitting the return to Israel of those refugees who desired admittance. Mr. Awalt inquired if the Ambassador had been in touch with Mr. Rockwell of the USUN delegation. Sheikh Asad stated that he had, but asserted that he believed it was sometimes useful also to deal directly with the Department.
Mr. Awalt asked the Ambassador whether he personally believed many refugees would return to Palestine if permitted to do so. The Ambassador said that he believed that only a few would wish to return but stated that it was a question of principle and that the GA resolution should be supported on that ground.