890F.515/101: Telegram

The Secretary of State to the Minister in Egypt (Kirk)

973. For Landis. The Department is thoroughly in accord with the suggestion made in London’s 3341, April 22, 11 p.m. that American and British economic authorities in Cairo explore the possibility of a joint goods subsidy program for Saudi Arabia based upon the principle of joint over-all 50–50 participation. However, in view of the political implications involved, the expectation that Jordan will take part in the discussions, and the probability that Moose will acquire additional factual information regarding Saudi Arabia’s economic requirements in the course of his current visit to King Ibn Sand, the Department considers it advisable that no discussions take place before Moose is able to proceed to Cairo to participate therein. Accordingly, Moose is being instructed to proceed to Cairo as soon as possible,86 and, if practicable by the military plane being furnished for his visit to the King.

Please inform Jordan that it is desired that these discussions begin as soon as Moose can get to Cairo and express the hope that Jordan will be able to remain in Cairo until Moose arrives.

It is desired that you and Moose cooperate closely in obtaining all factual information possible regarding Saudi Arabia’s economic needs and collaborate in submitting to the Department your and his recommendations concerning the nature and extent of this Government’s participation in the goods subsidy and related matters after the forthcoming discussions with Jordan and British economic officials in Cairo. It is suggested also that Friedman, Treasury representative at financial conference, might be invited to participate in these discussions. [Page 694] Upon receipt of this information and these recommendations, the Department, together with other interested agencies of this Government, will endeavor to formulate appropriate plans for the implementation of the program suggested in London’s 3341 and the extension to Saudi Arabia of such economic and financial assistance to Saudi Arabia as circumstances warrant.

Sent to Cairo. Repeated to Jidda.87

Hull
  1. This instruction was sent to the Minister Resident in telegram 75, April 27, midnight.
  2. Repeated as telegram 74; the Under Secretary of State was informed of action taken herein in telegram 3409, April 27, midnight, to London (740.0011 Stettinius Mission/67d).