or modified by either party on June 30 of any year divisible by five provided six months' notice is given by December 1 of the previous year. Cable and Wireless has a cable station at Jidda on the Red Sea side of Saudi Arabia and another cable station in Bahrein. The company, however, has no communication facilities on the Persian Gulf side of Saudi Arabia. The Arabian American Oil Company is building on the Persian Gulf side of Saudi Arabia a large strategic refinery under a Directive of the Joint Chiefs of Staff. This company has no adequate means of communication with the United States. The nearest commercial station is on Bahrein where messages must be sent by hand from Dhahran for transmission. The company uses a tug which transmits outside territorial quarters [waters?] several times a week to the United States. The company uses this tug for its urgent and confidential messages and sends only routine messages through the cable station at Bahrein. The company regards these communication facilities as entirely inadequate; furthermore, the use of the tug is not strictly in accordance with the terms of the agreement between Cable and Wireless Limited and the Saudi Arabian Government. In June 1944 the Arabian American Oil Company suggested to the Saudi Arabian Government that the Saudi Arabian Government erect a station of its own in the vicinity of Dhahran and give notice to that effect to Cable and Wireless Limited by December 1, 1944. Having failed to receive any satisfactory reply from the Saudi Arabian Government to its inquiry, the company requested the Department of State to endeavor to ascertain on its behalf the attitude of the Saudi Arabian Government in regard to the matter. In October 1944, upon instructions from the Department of State, the American Minister at Jidda took the matter up with the Saudi Arabian Government. He ascertained that the reason the Saudi Arabian Government had not replied to the Arabian American Oil Company was that the British Government had expressed to the Saudi Arabian Government its objection to the establishment of such a radio station. It is understood that the Saudi Arabian Government would give notice of the modification of its agreement with Cable and Wireless and proceed to establish its own station provided the objection of the British Government is withdrawn. If this objection is to be withdrawn, it must be withdrawn in sufficient time for the Saudi Arabian Government to give notice to Cable and Wireless Limited before the approaching deadline of December 1, 1944. Both the American and British Governments are in agreement that suitable censorship control should be established over this station as long as the war lasts. There is no reason to believe that the Saudi Arabian Government would object to the exercise of such censorship control during the war, and it is considered likely that appropriate arrangements therefor could be made quite easily. 811.7490F/10-2844: Telegram The Acting Secretary of State to the Minister in Saudi Arabia (Eddy) WASHINGTON, November 18, 1944–7 p. m. 252. ReDeps 234, November 3, 7 p. m. The Department is continuing its efforts to secure withdrawal of British objection to radio station. However, the Department does not consider, as suggested by King Abdul Aziz through his Acting Foreign Minister, that the giving of notice by the Saudi Arabian Government to Cable and Wireless is essentially a matter for settlement between the American and British Governments or that the withdrawal of the British objection before December 1st is necessarily a condition precedent thereto. You should convey immediately through the Acting Foreign Minister a message to the King stating that this Government, together with the Arabian American Oil Company, is in urgent need of adequate communications facilities for the Consulate at Dhahran and the company between eastern Saudi Arabia and the United States and that if notice is not given to Cable and Wireless before December 1, 1944, there is no assurance that adequate communication facilities will be established for at least another 5 years. It should be stressed in this message that this Government has supported the economy of Saudi Arabia by furnishing many millions of dollars worth of goods and services and is giving consideration to means by which the extent of this aid may be broadened. It should be pointed out also that the establishment of these communication facilities is not only in the interest of this Government but also in the interest of the Government of Saudi Arabia in that they will enable the Arabian American Oil Company to conduct its operations with greater efficiency and thus produce the oil upon which royalties are paid and in other ways contribute to the welfare and development of Saudi Arabia. The King should be reminded that the suggestions made for the provision of adequate means of communication involve the ownership and operation by the Saudi Arabian Government itself of a radio station from which revenue may be derived. The message should emphasize that the giving of notice by the Saudi Arabian Government to Cables and Wireless of intention to modify the agreement is strictly in accordance with the agreement itself and in no way involves avoidance of contractual obligations. Furthermore it should be made clear that the giving of notice is merely a declaration of intention and does not mean that such declaration is irrevocable; that if this notice is not given by December 1st presumably it will not be possible even to consider the means of altering the present unsatisfactory arrangement. Please keep Department fully and promptly informed of developments. STETTINIUS 811.7490F/11-644: Telegram The Acting Secretary of State to the Ambassador in the United Kingdom (Winant) WASHINGTON, November 20, 1944-midnight. 9765. Question of direct radiotelegraph circuit between the United States and Saudi Arabia which you were requested to present to Foreign Office in Department's 8183 of October 6, 1944, is becoming extremely urgent in view of deadline of December 1. Legation in Jidda has been authorized to approach Saudi Government requesting establishment of circuit with notification to Cable and Wireless before December 1. Matter has been discussed at length with Michael Wright of British Embassy here, who has been told that this Government attaches greatest importance to establishment of circuit. It is understood that views are being exchanged between Embassy here, Foreign Office in London and British Legation in Saudi Arabia. concerning this matter. However, in view of urgency and importance of matter will you please take matter up with Foreign Office immediately and personally and state that this Government earnestly hopes that British Government will advise Saudi Arabian Government that it has no objection to establishment of a radio station by Saudi Arabian Government for direct radio circuit between Saudi Arabia and the United States on understanding that if station operates before termination of European war, adequate security precautions will be taken by Saudi Arabian Government in connection with operation of station. Please telegraph Department result of your action not later than November 22. STETTINIUS 811.7490F/11-2144: Telegram The Minister in Saudi Arabia (Eddy) to the Secretary of State JIDDA, November 21, 1944-noon. [Received 12:35 p. m.] 348. Shaikh Yussuf Yassin, Deputy Foreign Minister, informed me confidentially that by order of the King official written notice was today given to Cable and Wireless reserving the right to modify the existing agreement in such way as His Majesty may decide. Since this was done in compliance with request transmitted in consequence of Department's 234, November 3, 7 p. m. and my several subsequent inquiries I did not deliver message in Department's 252, November 18, 7 p. m. which I had with me already for delivery. Comment in separate telegram.1 EDDY 811.7490F/11-2144: Telegram The Minister in Saudi Arabia (Eddy) to the Secretary of State JIDDA, November 21, 1944-1 p. m. [Received November 22-3:42 a. m.] 349. Continuing Legation's 348, November 21, noon. Official communication confirming Saudi notice to Cable and Wireless will be made soon after deputy Foreign Minister reports to King. Jordan argued with Shaikh Yusuf at great length against giving notice urging that since subject is under discussion between British and American Governments and Cable and Wireless it could be re-opened any time without notice. Shaikh Yusuf, however, stated that King had ordered giving clear notice to Cable and Wireless of intention to modify the agreement which was done in writing today and confirmed by telegraph from Saudi Government to Cable and Wireless home office. King Abdul Aziz, however, reports that active steps toward establishment of radio communication must be preceded by concurrence between British and American Governments who should relieve the objection based upon security. Informed Shaikh Yusuf that I had with me another message from my Government which I could not deliver in view of his report that our request had been fulfilled already. EDDY 811.7490F/11-2244: Telegram The Ambassador in the United Kingdom (Winant) to the Secretary of State LONDON, November 22, 1944-5 p. m. [Received November 22-1:35 p. m.] 10259. ReDepts 9765 November 20, midnight. Our earnest hope that the Saudi Arabian Government would be advised that the *Telegram 349, November 21, 1 p. m., infra. British Government had no objection to the establishment of a radio station by the Saudi Arabian Government, making possible a direct circuit to the United States, was presented with emphasis. Preliminary, oral reply was that British Government could not go so far as to tell Saudi Arabian Government, in effect, to cancel a contract with a British company. At British Government's insistence, however, Cable and Wireless was now engaged in exploring the possibility of improving its present service so as to meet our contention that it was entirely inadequate. A detailed written reply will be made by Foreign Office very shortly and will be forwarded to you. There are other considerations involved. WINANT 811.7490F/11-2244: Telegram The Acting Secretary of State to the Ambassador in the United Kingdom (Winant) WASHINGTON, November 25, 1944-6 p. m. 9918. Following is text of telegram dated November 21, 1944, from American Legation at Jidda: [Here follows text of telegram 349, November 21, 1 p.m., printed on page 769.] In view of fact that contract is between Saudi Arabian Government and Cable and Wireless, Jordan's contention that notice was not necessary and that subject could be reopened at any time without notice is not believed to be valid. In this connection British contention as stated in your 10259 of November 22, 5 p. m. that British Government could not go so far as to tell Saudi Arabian Government in effect to cancel a contract with a British company is also invalid, since Article 17 of contract permits termination or modification every 5 years upon 6 months' notice. It is clear therefore that notice is perfectly legal if given on or before December 1 and in any event does not entail cancellation but merely modification. With regard to possibility of improving existing Cable and Wireless service it may be observed that Department informed that Allied military authorities in Mediterranean area are highly dissatisfied with service rendered in that area by Cable and Wireless and that this is one of the reasons why Sir Edward Wilshaw is inspecting the company's installations in these parts. We again must insist that if it is to the mutual advantage of Saudi Arabia and the United States to operate a direct radiotelegraph service between the two countries |