Foreign Relations of the United States: Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

890F.51/3–1645: Telegram

The Minister in Saudi Arabia (Eddy) to the Secretary of State

Jidda, March 16, 1945—noon.
[Received 2:25 p.m.]

109. ReLegs 96, March 8, 3 p.m.⁴⁶ Saudi Government officially requests riyals for 1945 as follows:

• “(a) Fifteen million riyals requested for sale to Aramco as requested by them February 27. (Comment) This does not include riyals for sale to American Legation and to SAMS⁴⁷ which resumes operations next month with expanding riyal needs.
• (b) Fifteen million riyals lend lease for the Governnment of Saudi Arabia to meet her essential requirements because:

  1. Except in a few cities Arabians have used Maria Theresa dollars and rupees until quite recently. Now riyals are the sole currency everywhere.

  2. Financiers and merchants used to hold their balances in foreign exchange. Now that the riyal is more stable than foreign currencies they hold their assets in riyals.

  3. The silver content of the riyal has a market in Saudi Arabia as commodity silver and jewellers consume many riyals in making ornaments.

• The Saudi Government therefore requests a total of 30 million riyals for 1945 in accordance with the terms agreed in 1944⁴⁸ to meet the needs of the Government and of Aramco.”

Eddy

46. Not printed.
47. Saudi Arabian Mining Syndicate.
48. Two agreements were entered into in 1044 on this matter: see telegrams 57, April 12, 1944, to the Minister Resident in Sandi Arabia, and 180, September 14, 1944, 8 p.m., to the Appointed Minister to Sandi Arabia, Foreign Relations, 1944, vol. v, pp. 681 and 740, respectively.