Foreign Relations of the United States, 1955–1957, Near East: Jordan-Yemen, Volume XIII

93. Telegram From the Department of State to the Embassy in Jordan¹

Washington, June 7, 1957—9:38 a.m.

1908. Joint State–ICA message. For Seager.

We have carefully considered your 1707.² Appreciate difficulties in obtaining firmer figures on budget view strong possibility Jordanians themselves have no clear idea future revenues. At same time we continue be guided by considerations as previously stated including: a) desire avoid US becoming sole source aid Jordan; b) wish extend US assistance in manner most likely stimulate help from Iraq and Saudi Arabia;³ c) need for Jordanians exert utmost effort adopt sound fiscal practices.

We incline believe assistance from Egypt and Syria will either not be forthcoming or else be granted in kind (e.g. unusable obsolete military equipment) in such manner as be of little help in Jordan’s budgetary problem. At first glance this would appear argue on political as well as financial grounds for US stepping in now with balance required estimated at around $20 million additional for budgetary support. You will understand however difficulties we would face in justifying this amount in light considerations set forth above. We would further have no assurance that even grant of this magnitude would carry Jordan throughout balance HKJ FY.

We disturbed that Jordanians out of present meager resources called upon pay British $2 million. Dept intends discuss this with British urging British adopt sympathetic attitude re deferment future payments and continuing British aid at least complete road and port projects.

In absence firm recommendations to contrary, we propose following course of action:

1. That in concluding conversations with Jordanians you say you have had no word from Washington re further US economic aid this FY. You may in your discretion add that you understand urgent consideration is being given in Washington to question military aid. FYI If approved would be limited largely to continuing supply items formerly furnished by British hence applies against budget deficit. End FYI.

2. That when you proceed to Baghdad you review Jordan situation with Nuri. Method negotiation left your discretion but in order secure Iraq contribution equal or greater amount you authorized indicate US willingness make available to Jordan $5 million additional FY 1957. We are in touch with Saudis on their plans for aid to Jordan and would hope US, Iraqi and Saudi plans be made public simultaneously.

3. Meanwhile we will be proceeding with necessary determinations make available $5 million additional budgetary aid to Jordan under FY 1957 funds.

4. We would proceed notify Jordanians of this additional allocation in about ten days time hoping Iraq would announce its contribution simultaneously or earlier. If not, we would inform Jordanians that we pressing Iraqis give like amount and urge Jordanians make appropriate representations at Baghdad.

While above course of action will not respond immediately to all of Jordan’s needs as presently projected for current HKJ FY, it should carry Jordanians through months ahead and give US opportunity for further action with Saudis, Iraqis and British as well as time for renewed efforts determine Jordan’s actual needs. Embassy–USOM should of course attempt persuade HKJ avert expenditure increases proposed Embtel 1707 and keep us informed.

Herter

1. Source: Department of State, Central Files, 785.5–MSP/6–357. Secret; Priority. Drafted by Bergus and approved by Rountree who signed for Herter. Repeated priority to Baghdad, Jidda, and London.
2. Telegram 1707 from Amman contained Cedric Seager’s report of discussions with various Jordanian officials, particularly Rifai. The conversations focused largely on the budgetary situation, economic aid, and Jordanian-Iraqi relations. (Ibid.)
3. In the course of a discussion at the Secretary of State’s staff meeting on June 10, Rountree noted that it was likely that the United States might have to increase its aid to Jordan to $15 million above the $10 million already given, even after Saudi Arabia’s contribution. Rountree added that assistance would hopefully be coming from Iraq. (Ibid., Secretary’s Staff Meetings: Lot 63 D 75)