Office of the Historian

886A.2553/4–2554: Telegram

No. 341
The Ambassador in Saudi Arabia (Wadsworth) to the Department of State1

secret
priority
Jidda, April 25, 1954—9 a.m.

442. 1. Following is text Royal Decree No. 6/6/3/5737 of April 9 (as carried in Al Bilad Al Saudiyah April 23) ratifying agreement negotiated between Minister Finance and A. S. Onassis for formation Saudi Arabian Maritime Company and Transport Saudi Oil (Embtel 439, April 20 and previous):2

“We Saud Ibn Abdul Aziz Ibn Abdul Rahman Al Faisal Al Saud King of Saudi Arabian Kingdom relying on God and being acquainted with agreement consisting of sixteen clauses and two exchange letters enclosed with agreement which had been signed by our order in Jidda on date 15/5/1373 corresponding to January 20, 1954 between our Finance Minister and A. S. Onassis on behalf himself (Onassis) and companies which he represents have ordered following:

  • First article: We confirm above said agreement which is enclosed with this decree and we order it be put into effect on date of our decree.
  • Second article: Deputy President of Council of Ministers will execute this decree.

Issued from our Palace in Riyadh on sixth Shaban 1373 corresponding to April 9, 1954”.

2. Aramco Vice President Duce with whom I discussed decree today has telegraphed following comment to Board Chairman Davies Dhahran:

“In my view this matter is of critical importance not only to us but to whole industry.

I presume we shall shortly receive from SAG due notice regarding enforcement this decree and that full text Onassis contract will be made available.

I believe that if contract says what we have reason to believe it says we should consider notifying SAG we may be forced to cut [Page 813] back production to amount which can be lifted by parent company tankers.”

. . . . . . .

3. Deptel 303 April 233 was received after foregoing drafted. Will consult further with Duce before replying.

Wadsworth
  1. Repeated to Dhahran.↩
  2. Not printed. (886A.2553/4–2054)↩
  3. Not printed, but see footnote 3, supra. Telegram 445 from Jidda, Apr. 26, informed the Department of State the Ambassador had called at the Saudi Arabian Foreign Office on that day to request official copies of the Onassis agreement and express his misgivings about it. (886A.2553/4–2654)↩