Office of the Historian

264. Memorandum of a Conversation, Department of State, Washington, September 25, 1957, 3:35 p.m.1

Washington, September 25, 1957, 3:35 p.m.

SUBJECT

  • Middle East Development Organization

PARTICIPANTS

  • H.E. Ali-Mumtaz al-Daftari, Minister of Finance and Acting Foreign Minister of Iraq
  • Saleh Mahdi, Chargé d’Affaires of Iraq
  • The Secretary
  • Stuart W. Rockwell, NE
  • David D. Newsom, NE

During the course of his conversation with the Secretary, the Finance Minister said he was working on an idea to create an organization which would help those Arab states which did not possess oil revenue. He said this would be accomplished by a contribution of the oil-producing states up to 3–5% of revenues to a central organization. This organization would then be in a position to lend money to other Arab states, perhaps at a modest interest fee of 2% over a long term. He mentioned that Lebanon, Syria and Jordan were nations immediately requiring help.

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He said that he was discussing this proposal with Selwyn Lloyd and hoped to get Lloyd’s agreement for Kuwait to participate. He said he believed Kuwait had more revenue now than they could use and would have more in the future. He said he believed if he could get Kuwait to participate, Saudi Arabia would also be encouraged to join.

The Secretary expressed the view that this was an excellent idea.

  1. Source: Department of State, Central Files, 880.00/9–2557. Secret. Drafted by Newsom. The time of the meeting is from Dulles’ Appointment Book. (Princeton University Library, Dulles Papers) See also supra.↩