91. Telegram From the Department of State to the Embassy in Iraq1
2235. Baghdad’s 1868.2 Should Nuri raise question of our reaction his suggestion US financial assistance through Iraq to Jordan you may indicate problem extremely complex from US legal standpoint, but suggestion and possible alternative being urgently considered USG. We continue believe all interested parties, especially Iraq and Saudi Arabia, should seek ways working together to ensure independence Jordan.
FYI Meanwhile, we desire Embassy’s comments our current thinking. We appreciate problem as posed Embtel 1868. Any loan to Jordan through Iraq or Saudi Arabia, however, cannot be arranged [Page 134] under current US legislation and practices. Loan as suggested would also seem raise Parliamentary problem in Iraq since presumably authority would be required pass Development Board funds to Jordan. We assume therefore parliamentary obstacle surmountable.
While we do not yet have full results Saud–Faisal talks re Jordan, presume some groundwork has been prepared for their further cooperation. It seems to us highly preferable from psychological points of view that aid for Jordan should come from Arab sources and that any US aid should be supplemental. We believe we should make still further approach to Nuri encouraging him to match contributions already made by Saudi Arabia and US. In event Embassy believes this not feasible, we are sufficiently convinced importance securing some Iraqi contribution to consider proposal in which US would agree make further funds available to Jordan to match Iraqi contribution. Embassy comments particularly desired on extent to which such additional US aid might make it easier for Nuri support substantial Iraqi aid.
While Iraqi contribution potash and phosphate project will undoubtedly be helpful, we believe Jordan’s greatest need straight budgetary support. We would assume any funds from Iraq which we might match would go for latter purpose. End FYI.
- Source: Department of State, Central Files, 785.5–MSP/5–1157. Secret. Drafted by Newsom and approved by Rountree who signed for Dulles. Repeated to Amman, Jidda, and London.↩
- On May 11, the Embassy in Baghdad informed the Department, in telegram 1868, that it agreed with its assessment that with the restoration of oil flow in Iraq and the Iraqi Petroleum Company’s loan to the Government, the Iraqi financial situation was “good.” According to the Embassy, part of Nuri al-Said’s reluctance to extend aid to Jordan resulted from the fact that he would have to obtain authorization from the Parliament. Despite “widespread sympathy” for Jordan’s financial problems, the Embassy concluded, any large diversion of funds from Iraq’s own development program would present the Prime Minister with local political problems. The Embassy inquired if funds from the Richards mission could not be loaned to Iraq with the understanding that they would be used to reimburse the Iraqi Development Board for any funds it furnished Jordan. (Ibid.)↩