890F.24/7–445: Telegram

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

186. From Dept and FEA for Eddy and Await. Your 247 June 24 rpt to Cairo as 142, Cairo’s 1319 June 25 rpt to Jidda as 174.45

[Page 919]
1.
We concur in your judgment that it would be preferable to include textiles and exclude trucks from the 1945 Joint Supply Program. We have proposed this change to UK Treasury Delegation here and anticipated no objection.
2.
Commodity composition of 1945 Joint Supply Program will therefore be as follows: (a) cereals 50,000 tons, (b) textiles 6,871,000 yds, (c) tires 8,500 units, (d) automotive replacement parts for Govt-owned trucks and cars of US manufacture, estimated value $114,000, (e) sugar 3,000 tons, (f) tea 120 tons, (g) expenses of diplomatic missions 120,000 pounds sterling.
3.
As in 1944 contributions of US and UK Govts to this Joint Supply Program which it is estimated will cost a total of $10,000,000 (2,500,000 pounds sterling) will be of equal value.
4.
Message giving suggested text joint communication to Ibn Saud by American and Brit Ministers will be sent you.
5.
After analysis of SAG essential requirements and resources for meeting these requirements it has been determined that in addition to supplies to be provided under Joint Supply Program and in addition to 17,000,000 resale riyals and 10,000,000 credit riyals there should be provided a supplemental US program in 1945 valued at approx $3,000,000.
6.
Only items we are now procuring for Saudi Arabia which we are not obligated to supply under the 1944 and 1945 Joint Supply Programs are as follows: (h) 287 trucks $1,400,000 our estimate or $1,800,000, MESC estimate, (i) paper $7,500, (j) farm equipment and supplies $37,000, (k) radio and other communications equipment $134,000, (l) distillation plants $34,000, (m) passenger cars $5,000, (n) garage equipment $30,000. These total $1,647,500 to $2,047,500. Procurement or shipment well advanced on all these items and they should be included in US supplemental program.
7.
We may be able to place in procurement hospital electrical installation $20,000 and the marine engines $100,000 indented for but these items cannot be supplied in time to be of practical value in 1945, and should be excluded from US 1945 supplemental program.
8.
We are prepared to consider additional L/L46 indents for essential supplies valued at from $1,000,000 to $1,500,000 to bring total of supplemental program up to $3,000,000. Any such indents would have to be reviewed here on basis of supply and other considerations but favorable action could be expected under present Lend-Lease policy. We will need recommendations on items to be obtained under these additional indents from you. When the time comes to announce US program to King you should inform him that items mentioned above in para 6 are on way and ask what else he wants to complete $3,000,000 total of US supplemental program.
9.
Proposed 1945 Joint Supply Program differs from 1944 Joint Program by providing less textiles, tires and auto spares and no dates, medical supplies or steel. Supply situation precludes possibility of US providing more textiles, tires or spares than quantities called for by 1945 program. US cannot supply dates. Reasonable quantities of medical supplies and steel could appropriately be added to proposed US aid program if desired.
10.
Your recent cables have suggested that on account of locusts MESC should increase estimate of Saudi’s cereal requirement above 50,000 ton figure. If this is done US could, subject to shipping availability, supply some cereals as part of US supplementary program.
11.
Lend-Lease appropriation was passed by House June 28 and Senate should act before July 7.
12.
Foregoing is for your confidential information and should not be divulged to the Saudi Arabian Govt until British-American communication on Joint Program is delivered.

Sent to Jidda repeated to Cairo. [Dept and FEA.]

Byrnes
  1. Neither printed.
  2. Lend-Lease.