102. Staff Notes Prepared for President Eisenhower 0
[Here follows item 1.]
2. Arab Union Facing Financial Problems.—Embassy Baghdad has agreed in discussions with the British Embassy that our two countries should do their utmost to help assure the success of the Union, and that assistance in political, military and economic fields will be required.1 The Union probably will find itself in acute financial difficulty in the future since US aid for Jordan will remain essentially unchanged, the Saudi Arabian subsidy will be terminated, and most of the oil revenues will continue to be allocated for development in Iraq, which cannot afford both the Union and the present development program without outside help. Since there is virtually no basic Union economic planning, as well as a general reluctance to face the economic consequences of the Union, our Embassy suggests that the US and British Governments should begin now to consider all possible avenues of assistance. For the immediate situation, the Embassy recommends an encouraging US response to Iraq’s requests for fighter aircraft and aid for propaganda and youth camp purposes. (S)
3. VOA Transmitter on Cyprus.—USIA reports that the British have agreed in principle to American construction of a VOA transmitter on the island of Cyprus, to provide improved VOA coverage of the Middle East. Known as Project Delta, the installation would broadcast on a medium wave length with 500 kilowatts of power, with provision for expansion to 1000 KW. The British are studying technical factors which may affect local broadcasting, and a favorable decision is in prospect. (S)
[Here follow items 4–6.]