890F.796/12–2445: Telegram

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

376. Dept is pleased to have your telegram 431, Dec 24 since it is first information we have had regarding what actually took place during negotiations between TWA and SAG concerning internal SAG airline and other air services.

Dept has no objection to proposals outlined in that telegram especially in view of statement that all proposals are non-exclusive.

Concern reflected in Dept’s 369 Dec 20 arose from fact that Brit Embassy had confidentially submitted what purported to be summary [Page 995] of proposal allegedly made to SAG by TWA which contained clause “Company will have 30-year monopoly-charter from the King to transport by air persons, property and mail between points within Saudi Arabia and between Saudi Arabia and points outside.”66

We did not desire that Brit Govt just at this time have any reason to believe that while we were seeking to prevail upon it to withdraw its objections to our having fifth freedom rights in Saudi Arabia an American company was secretly endeavoring to secure an air monopoly within Saudi Arabia and between that country and points outside.

Sent to Jidda. Repeated to Cairo and London.

Acheson
  1. Submitted by the British Embassy in an “Oral and Informal Communication” on December 24, 1945, not printed.