890F.51/6–1845: Telegram
The Acting Secretary of State to the Minister in Saudi Arabia (Eddy)
169. ReLegs 235, June 11. Hearings on Lend-Lease budget started this week. Unlikely it will get final Congressional approval before June 30, and it might take longer. We can make no final commitment to the King on 1945 budgetary assistance until budget is approved, including the specific item for Saudi Arabia.
As for the rest of the matters discussed in Dept’s 131, May 7, in the Department’s opinion you should tell Ibn Saud quite frankly that it will be a matter of several months before the U.S. Government will be in position to tell him exactly how it intends to assist him over the next several years. A long range financial assistance program of the type desired by Ibn Saud is without precedent in United States history. The fact that it is being seriously considered is in itself proof of the great interest of the United States Government in the King’s problems and the welfare of his people. There is practically unanimous agreement amongst all government officials who have been studying the matter, including President Truman himself,33 that necessary assistance should be provided. Delay does not represent lack of agreement on that basic objective, but rather reflects the earnest efforts being made to determine ways and means which will receive the wholehearted support of Congress and the approval of the American public. It is thought essential that when plans are finally presented to Congress, [Page 909] they should be in such shape as to merit quick approval with a minimum of controversy.
This means that there must be much preliminary study, and cautious testing of Congressional opinion on an informal basis from time to time. Such a program requires continual close collaboration and reconciliation of views between several different agencies, including War, Navy, State, Treasury and Interior Departments and probably the Export-Import Bank. Aramco must of course be consulted, and the views of the rest of the petroleum industry cannot be ignored. The probable reactions of the King to the various types of proposals advanced by different groups must be explained by the Department, so that time will not be wasted in getting approval of Congress for a plan which the King might turn down, requiring us to start all over again.
Substantial progress has been made, particularly during the past month, and the Department is now quite confident that a definite program will be worked out and approved by the early part of 1946. Even if we fail to meet that deadline, we feel confident that the King’s essential needs will continue to be met in one way or another until the over-all program is finally ready. We hope that you will be able to impart this feeling of confidence to the King, and to persuade him that patience will be in his own best interest in the long ran. Please try to disabuse him of any idea he may have that the U.S. Government intends to pay him so and so much on the spot for any given act of cooperation on his part. You should rather stress the point that his cooperation is in the interest not only of Saudi Arabia but also of the Arab world generally. The relationship between the two Governments must be one of mutual trust, confidence and forebearance.
It is difficult for the Department to believe that the King will refuse to wait 6 months for an American offer, when his only alternative would be to accept funds from some other power under extremely onerous conditions.
It had been hoped that a $5,000,000 development loan could be announced at the same time as the 1945 supply program. It now appears that this loan may have to be made part of the longer range assistance program, since the problems met in working out the development loan are much the same as the general problems connected with the budgetary assistance program. It is felt that a general solution should be sought; an attempt to rush a solution on the development loan might endanger the entire program.
In summary, you may inform the King that you cannot give him a final commitment on assistance for the year 1945 until about 15 days [Page 910] after the lend-lease budget is approved by Congress; that you will inform him when you are in position to make the commitment; and that you hope it will be not later than July 15. You can point out that all other lend-lease recipients must also await this budget approval before being certain of the aid they are to receive.
You may inform him that you will not be in a position to present a detailed program for long range budgetary assistance and development until early next year, but that work is going forward in Washington on such a program with President Truman’s personal approval; that there is general agreement that assistance should be given; that delay reflects only the care being taken to formulate a really sound program which will receive the whole-hearted approval of Congress and the American people; and that you will be glad to explain further when you visit him in connection with the 1945 assistance program. It is hoped that the background information given in this telegram will assist you in making that explanation.