281. Circular Telegram From the Department of State to Certain Posts1

39172. 1. Negotiations between Saudi Arabia MinDef and US Department Defense for purchase by SAG of mobility modernization package designed provide Saudi Armed Forces with modern vehicle fleet concluded with signature of contract August 28 by Saudi DefMin Prince Sultan. US SecDef signature contract anticipated about September 2 at which time Embassy Jidda and SAG will issue joint announcement. FYI only: Implementation of mobility program will extend over approximately five years and will involve some training by US military of Saudi personnel. Cost of program about $120 million. End FYI.

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2. Department/DOD not planning any publicity re contract but will answer queries as follows:

a.
Agreement is result of study by Saudi Min of Defense and Aviation and is designed provide Saudi armed forces with fleet of modern military vehicles (mainly trucks) and spare parts together with related workshops, maintenance facilities and other installations required for logistical support.
b.
Transaction in line with long-standing US policy of confining sales to Near Eastern countries within limits essential for defense and internal security.

3. If queried re price and other terms contract, we will state that, in deference to friendly government, USG traditionally prefers not discuss details of such agreements.

4. Posts may answer queries along lines paras two and three above.

Rusk
  1. Source: National Archives and Records Administration, RG 59, Central Files 1964-66, DEF 19 US-SAUD. Confidential. Drafted by Korn; cleared by Thieberger (OSD/ISA/ILN), Edward A. Padelford (NEA/RA), NEA Public Affairs Adviser Daniel Brown, Symmes, Captain Castillo (DOD/ASA/PA), Quinn, Warren, and Director of the Office of News in the Bureau of Public Affairs Robert J. McCloskey; and approved by Davies. Sent to Amman, Baghdad, Beirut, Damascus, Taiz, Aden, Dhahran, Tel Aviv, Cairo, Kuwait, Tehran, Ankara, Paris, London, Jidda, CINCSTRIKE, and MED DIV ENGRS Livorno.