Office of the Historian

137. Telegram From the Embassy in Saudi Arabia to the Department of State1

Jidda, May 19, 1975, 1145Z.

3541. Subject: Letter From Prince Sultan Rejecting Payments to “Middlemen” on Defense Contracts.

1. There follows a letter dated May 17, 1975 from MinDef Prince Sultan replying to a March 6, 1975 letter from Ass’t SecDef Ellsworth on the subject of the payment of a commission fee on the Peace Hawk program. The letter is definite in rejecting the payment of agents fees to middlemen on government to government defense contracts.

2. Begin text: Mr. Robert Ellsworth, greetings: In response to your letter dated March 6, 1975 A.D., concerning the importance of the F–5 Peace Hawk program and with reference to the mention in your letter of allocating the sum of $45 million as a commission on the agreement between the Northrop establishment and the Triad financial establishment, I should like to inform you that as soon as I received your letter I informed the American Ambassador, the Kingdom, and the Chief of the American Military Mission of my utter rejection (of that) commission and my complete non-acceptance of any middleman, no matter who or from where he happens to be, in any arms contract between the Government of the Kingdom of Saudi Arabia and the Government of the United States of America.

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I thank Your Excellency for this observation. In so doing I hope that your side will be strict about carrying out the wishes of the Government of the Kingdom of Saudi Arabia and the United States of America to keep military contracts away from any intercession.

Renewed thanks and greetings. Signed, Sultan bin Abd al-Aziz, Minister of Defense and Aviation and Inspector General. End text.

Akins

  1. Summary: The Embassy forwarded a letter from Prince Sultan to Ellsworth regarding Northrop’s contracted commission payment to Triad, included in the F–5 Peace Hawk program.

    Source: National Archives, RG 59, Central Foreign Policy File, D750176–0884, D750175–0706. Confidential. Also sent to the Department of Defense. Repeated to CHUSMTM, USCINCEUR, and Dhahran. Lt. Gen. H.M. Fish replied for Ellsworth on May 23, informing Sultan of a further $23 million payable to Triad included in the letters of offer for Peace Hawk IV, signed by Sultan on January 4. (Ibid.) For Sultan’s June 10 reply, see Document 147.

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