Office of the Historian

886A.2553/12–1854: Telegram

No. 377
The Ambassador in Saudi Arabia (Wadsworth) to the Department of State

secret
Jidda, December 18, 1954—2 p.m.

283. Davies told me Dhahran yesterday:

1.

Re Onassis dispute. At private audience December 16 King was in excellent spirits, well pleased with agreement re arbitration [Page 871] (Embtel 273, December 12),1 which he apparently felt would enable him “finish with Onassis”.…

King told him Pacific Western had concluded agreement with Onassis for use tanker “[Saud I] first.” This confirmed reports Aramco had received earlier in week from other Saudi sources. Davies said he would be telegraphing full report to his board in New York today and suggested Department would be interested in learning details from Duce.

2.
Re Aramco–SAG pricing negotiations. Test agreement drafted Jidda by Aramco negotiators and Minister of Finance Surur is being studied by Royal councilors. Surur had been authorized inform him answer would be given January 10.

. . . . . . .

Wadsworth
  1. Dated Dec. 13, not printed. It reported on an article in the semi-official Saudi Arabian newspaper Biladal Saudiyah regarding the disagreement between the Saudia Arabian Government and Aramco, which considered the Onassis Agreement incompatible with its concession agreement. Unless the government and the company reached agreement before Jan. 15, 1955, the dispute was to be referred to an arbitration committee. (886A.2553/12–1354)↩