Foreign Relations of the United States, 1961–1963, Volume XVII, Near East, 1961–1962

196. Telegram From the Department of State to the Embassy in Saudi Arabia⁰

Washington, February 24, 1962, 1:09 p.m.

284. Re follow-up President’s talk with King February 13, following contemplated:

1. Departmental Action: (a) examine on inter-agency basis form possible economic assistance to Saudi Arabia might take and subject of despatch economic mission to Saudi Arabia; (b) examine feasibility extending credit terms to SAG re latest arms request approximately $16 million; (c) acquaint Saudi Ambassador our views re boundary problems southern Arabia including Buraimi.

2. Embassy Action: (a) submit Embassy views and recommendations re SAG need for economic aid in general and possible projects particularly justifying US assistance (we prefer you defer discussion with SAG Supreme Planning Board until after Dept and Embassy views coordinated; (b) submit regular status reports re negotiations USMTM for forwarding to President; (c) at earliest suitable opportunity following King’s return Saudi Arabia Ambassador communicate with King directly re customs difficulties Port of Damman and SAG policy issuance visas Americans Jewish faith (see talking papers and memcon pouched this date for guidance).

White House has been informed foregoing action being taken.

FYI. On subject economic assistance President made clear he was not making commitment for economic assistance but only promising explore need.

Rusk

0. Source: Department of State, Central Files, 811.0086A/2–2462. Secret. Drafted by Seelye; cleared by Thacher, Ide (AID), Smith (White House), Komer (White House), Duncan (NE/E), Olsen (S/S), and Williams (AID); and approved by Grant. Repeated to Dhahran.