Foreign Relations of the United States, 1964–1968, Volume XXI, Near East Region; Arabian Peninsula

104. Memorandum From the Country Director for Saudi Arabia, Kuwait, Yemen, and Aden (Brewer) to the Director of the Office of Regional Affairs, Bureau of Near Eastern and South Asian Affairs (Sober)¹

Washington, October 13, 1967.

SUBJECT

• Immediate Actions Consistent with Holmes Study²

REFERENCE

• Your Memo, September 22, 1967³

The Holmes Study made no suggestions for any major courses of action to be taken in the region of the Arabian Peninsula at this time. Nevertheless, as your memorandum recalls, even with our present limited resources there are certain actions already underway and others whose relevance to the Study deserve mention.

In Kuwait, for instance, a $50 million loan has been approved by the Export-Import Bank to the Kuwait National Petroleum Company for partial financing of a refinery. The loan is a further evidence of United States support for this important small Persian Gulf State whose continued development is a key factor in the maintenance of stability in the area.

The United States Government is following through with planning to elevate its Consulate General in Aden to an Embassy when South Arabian independence follows British withdrawal (possibly before the end of 1967). This, of course, assumes that a viable government will be established which we will find it in our interest to recognize.

With reference to the Study’s repeated mention of the desirability of our contributing to a multinational naval task force for the area, NEA/ARP suggests that improvement of US Naval capacity for the region might be more realistic. There are increasing numbers of isolated groups of US citizens in the Peninsula for whose welfare and protection we have some responsibility. The region’s vast oil reserves remain important to us. NEA/ARP therefore urges that further study now be given to this question. The particular thrust of this effort should be to flesh out what is meant by the need to develop an “on call” military capability, including naval forces operating in waters contiguous to the area as is suggested in Annex B, Section V.C and D of the Holmes Study. As a basis for discussion, we would favor the immediate examination of the possibility of increasing the strength of our Middle Eastern naval forces from two destroyers to four. This would appear particularly useful right now, due to the much longer time required to support and reinforce COMIDEASTFOR due to the closure of the Suez Canal.

1. Source: National Archives and Records Administration, RG 59, NEA/RA Files: Lot 71 D 218, Holmes Study, 1967. Confidential. No drafting information appears on the memorandum.
2. See Document 22.
3. Sober’s September 22 memorandum to IRG/NEA members reported that the Chairman of the SIG had asked IRG/NEA and IRG/AF to propose actions that might be initiated immediately in the Holmes Study area, even with present limited resources. (Department of State, NEA/RA Files: Lot 71 D 218, Holmes Study, 1967)