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Coll 6/91 'Saudi Arabia. Policy of H.M.G. Qn. of credits and guarantee of assistance to Ibn Saud.' [37r] (74/680)
The record is made up of 1 file (338 folios). It was created in 24 Oct 1939-1 Jan 1945. It was written in English. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .
Transcription
This transcription is created automatically. It may contain errors.
COPY
(S 4063/325/25)
Smbassy of the United States of America
1 Grosvenor Square,
London, W.l.
7 July, 1944.
Dear Sir Maurice:
I have been aslced to convey the gratification of the
Department of State that you have expressed in your letter
of June 8 (No. K 3025/325/25) 1944, reiterated assurance
of adherence to the agreed principle that the larger
financial and supply problems of Saudi Arabia ought to be
dealt with as far as possible on a joint basis in consul
tation between our two Governments.
The support to which you refer accorded to Dr. Mill-
spaugh by British officials in Iran is fully appreciated.
It may be recalled, however, that Dr. Millspaugh's Mis
sion was formed at the suggestion of the British Govern
ment as well as upon the request of the Iranian Govern
ment to cope with special conditions arising out of the
war. The situation in Iran, therefore, for this and other
reasons does not appear to be entirely analogous to that
prevailing in Saudi Arabia.
In considering Saudi Arabian matters both our Govern
ments, I believe, are seeking a solution of long range '
problems which will safeguard our respective interests in
that country. It is recognized that the Near East, in
which there are many British Moslem subjects, is an area
of primary British military operational responsibility.
For this reason, the Department of State, in conjunction
with the War Department, signified its approval of the
Foreign Office 1 s suggestion that a joint Military Mission
be sent to Saudi Arabia under the leadership of a British
officer of Anglo-Saxon extraction. This approval,
however, was made contingent upon the understanding that
any financial or economic Mission which might be sent to
Saudi Arabia should be headed by an American. By this
reference was meant any Mission of a financial or economic
character or any expert or experts furnished by either
the American or British Government for the purpose of
advising the Saudi Arabian Government with respect to
financial or economic matters. In making this suggestion
the Department had in mind particularly the request for a
financial adviser reported to have been made last March
by King Ibn Baud. It was contemplated, therefore, that
if but one adviser should be furnished he should be an
American and that, if he should be provided with an
assistant, such assistant should be British, or, if with
several assistants, they should be of mixed nationality.
The reason it was proposed that the head of any
financial mission or that a single financial adviser
furnished to the Saudi Arabian Government be an American
is that the preponderant interest in Saudi Arabian econ
omy is unquestionably American in character and will
presumably remain so for many years to come. As you
know, the principal economic resource of Saudi Arabia is
Sir Maurice Peterson, K.C.j .C. , C.M.G.,
Foreign Office,
s.:.1.
its/
About this item
- Content
This file concerns British policy towards Saudi Arabia during the Second World War (the abbreviation 'Qn' in the title stands for 'Question'). The correspondence discusses the question of providing financial or material assistance to Ibn Saud [‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd], as well as the United States' growing economic and strategic interests in Saudi Arabia.
The file features the following principal correspondents: His Majesty's Minister at Jedda (Sir Reader Bullard, Hugh Stonehewer Bird, and Stanley R Jordan successively); the Secretary of State for India (Leo Amery); the Viceroy of India (Archibald Percival Wavell); the Chancellor of the Exchequer (John Anderson); officials of the Foreign Office, the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. , the Treasury, the Government of India's Finance and External Affairs Departments, and the United States Embassy in London.
Related matters of discussion include the following:
- The idea (initially discussed in correspondence dating from 1939) of an alliance or a bloc of Arab states (chiefly comprised of Saudi Arabia and the Yemen), which would support the Allied cause.
- The Italo-German reaction to Ibn Saud's refusal to receive German diplomat Dr Fritz Konrad Ferdinand Grobba, a decision that was applauded by the British.
- Italian influence in the Middle East.
- Anglo-French co-operation in the Middle East.
- Details of the Saudi Government's finances (i.e. expenditure and revenue) during the early war years.
- Arrangements for loans and payments from the British to the Saudi Government, as well as details of royalties and loans paid to the Saudi Government by the California Arabian Standard Oil Company (Casoc).
- Proposals for an irrigation and agricultural mission to Saudi Arabia, headed by a United States agricultural expert.
- Conversations between Ibn Saud and United States General Patrick Hurley during the latter's visit to Riyadh in May 1943.
- The Government of India's decision in 1942 not to allow pilgrim ships to sail from India to Saudi Arabia, because of a risk of the ships being attacked.
- Ibn Saud's requests in 1944 for the British Government to send to Saudi Arabia financial and military advisers, preferably Sunni Moslems [Muslims].
- The proposed appointment of Ibn Saud's requested financial adviser, which is delayed and eventually abandoned, following the United States' suggestion that the position be given to a United States adviser, because of the United States' 'preponderant interest' in the Saudi economy.
The file includes two dividers which give a list of correspondence references contained in the file by year. These are placed at the back of the correspondence (folio 2).
- Extent and format
- 1 file (338 folios)
- Arrangement
The papers are arranged in approximate chronological order from the rear to the front of the file.
- Physical characteristics
Foliation: the foliation sequence (used for referencing) commences at the inside front cover with 1, and terminates at the last folio with 339; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional foliation sequence is present in parallel between ff 262-286; these numbers are also written in pencil, but are not circled. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.
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Coll 6/91 'Saudi Arabia. Policy of H.M.G. Qn. of credits and guarantee of assistance to Ibn Saud.' [37r] (74/680), British Library: India Office Records and Private Papers, IOR/L/PS/12/2163, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100046518046.0x00004d> [accessed 25 April 2024]
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- Reference
- IOR/L/PS/12/2163
- Title
- Coll 6/91 'Saudi Arabia. Policy of H.M.G. Qn. of credits and guarantee of assistance to Ibn Saud.'
- Pages
- 37r:38v, 58r:58v
- Author
- United States Federal Government
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