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United States Department of State / Foreign relations of the United States, 1947. The Near East and Africa

Saudi Arabia,   pp. 1329-1342 PDF (5.4 MB)

Page 1333

of tState did not control the policy of the Export-Import Bank in peace
   The Crown Prince then raised the question as to whether this rail-
 road would be owned by the Oil Company or Saudi Arabia, if it were
 built under these conditions. He was told that it was our preference
 that, although American private enterprise should put up the money,
 the actual owner should be the Government of Saudi Arabia. Amir
 Saud asked whether it could be said that the $15,000,000 loan which
 was on the books of the Export-Import Bank was a definite commit-
 ment. He was informed that it was not a definite commitment but that
 the Department felt that there was a strong likelihood that at least
 such an amount could Tbe placed at the disposal of the Government of
 Saudi Arabia. The Department's statement that it would try to get the
 amount raised should also not be considered as a commitment either.
   The Crown Prince said that he was grateful for this information,
 and Minister Hamza implied that although they had hoped for -a more
 specific commitment, this was nevertheless satisfactory.
   The. Prince thereupon told the Secretary that his visit to the United
 States had been a most successful one, and that he felt a great store of
 "goodwill" existed between Saudi Arabia and the United States.
 Secretary assured him that this was the case.
   Mr. Marshall was then presented with a golden ceremonialsword by
 the Crown Prince, after which various photographs were taken of the
 Amir and the Secretary, and the conversation closed on a most friendly
 Memorandum by the Associate Chief of the Division of Financial
 Affairs (McGuire) to the Director of the Office of Financial and
 Development Policy (Ness)
                                    [WASHINGTON,] April 16, 1947.
  Recent cables from Jidda report that Fuad Bey Hamza, newly
appointed "Director of Economic Development" for the Saudi Ara-
bian Government, wants the Export-Import Bank to extend its pres-
ent line of credit to provide $52,190,000 over and above the $10,000,000
already made available. $32,190,000 would be utilized for the Riyadh-
Dhahran railroad and harbor already considered and $20,000,000 for
a new project for a harbor at Jidda and a railroad from Jidda to
Mecca, and Medina. For "political reasons" the Saudi Arab Govern-
ment prefers Eximbank financing to private financing. Hamza re-
marked that loans to Saudi Arabia had the same political justification
as loans to Greece and Turkey in addition to repayment security. The

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