208. Editorial Note
On January 19, in the course of a conversation between American and British officials, Ian Samuel of the British Foreign Office raised the problem of Saudi money. Samuel noted that Saudi money was an “extremely dangerous weapon” and added that a way should be found to ask Aramco to stop its advances. (Memorandum of conversation by Newsom, January 19; Department of State, NEA Files: Lot 59 D 518, Eden Talks, Washington, Jan. 28–Feb. 1, 1956 (Background Papers)) That same day, in a conversation with Eugene Holman of the Standard Oil Company of New Jersey, Dulles took note of the British concern. The Secretary indicated that the coming visit of Prime Minister Eden “would no doubt bear quite sharply upon the Saudi Arabian situation and emphasize the British feeling that American oil company royalties were helping the Saudis to finance what in effect was a war against British interests in the Near East.” Dulles added that “we might be put in a difficult position by the British in relation to this general matter, and particularly in [Page 322] relation to the territorial disputes.” (Memorandum of conversation by Dulles, January 19; Eisenhower Library, Dulles Papers, General Memoranda of Conversation)
On January 24, in response to reports that Nuri Said, the Iraqi Prime Minister, was concerned over Saudi Arabia’s purported campaign to finance Communist elements within Iraq, the Department instructed Waldemar Gallman, Ambassador to Iraq, to inform Nuri that it had “studied with increasing concern reports of anti–Western activity and anti–Pact activity with accompanying evidence alleged Egyptian–Saudi participation.” Gallman was further instructed to inform Nuri that these studies were continuing and that the United States also was planning to make King Saud aware of its concern. (Telegram 544 to Baghdad; Department of State, Central Files, 686A.87/1–2356) That same day, the Department instructed Wadsworth in Jidda to inform the King of United States reports of Saudi activity in Jordan and Iraq. (Telegram 352; ibid., 780.022/1–2456)