886A.10/2–1350: Telegram

The Ambassador in Saudi Arabia (Childs) to the Secretary of State 1

top secret

78. I discussed at great length, but in very general terms, with Crown Prince Saud on February 8 at Dhahran deplorable state administration finances by SAG. Upon conclusion my remarks Saud said: “I wish thank you from bottom my heart for friendliness which has inspired your comments. I wish you know I will always welcome expression any opinion from you which you may feel disposed express on any matter.

“I am fully aware of situation you have mentioned which has been source of deep disturbance to me for some time past. Situation is one by no means confined to Ministry of Finance but extends to almost every administration of government.

“You will appreciate that I am in very peculiar and delicate position. I recognize fully problem and fully share your own views and conclusions you have drawn regarding necessity of thoroughgoing reforms. I am deeply aware my responsibilities. However, my father [Page 1125] is not equally as aware of this situation on account his age and the difficulty he has in adjusting himself to modern advances.

. . . . . . . . . . . . . .

“There is only one person in SA to whom I am unalterably attached and that is my father. I will do nothing to hurt him or prejudice his state of mind or his health. I shall act decisively when I have power and I shall spare no one in taking necessary measures I recognize to be necessary for well-being of my country whose interests I place above everything else in life except my religion.”

Crown Prince informed me also that his father’s advisers, referring particularly to Finance Minister,2 have his ear and confidence to such extent that anything he, Crown Prince, or his brothers might say in writing existent state of affairs might so severely react on him and his brothers as to prejudice their position. Saud confided to me he had spies throughout SAG administration who were reporting to him personally on everything happening. For some time past he has been studying constitutional and budgetary practices neighboring Arab states as well as Turkey and he directed his private secretary3 show me draft decree he has prepared providing for new constitution setting up Cabinet, Legislature and Senate along Egyptian model.

He was deeply appreciative my comments and requested me to repeat them to His Majesty without reference to fact I had made them previously to him or that this suggestion had come from him.

This morning in Riyadh I had more than hour’s talk with King on same subject, with Fuad4 as interpreter. In middle of my talk Fuad said in aside to me “I don’t know how to thank you for bringing this subject up. It proves you are real friend of SA. I have been working to this same end for twenty years without result. It is imperative that something be done.”

As I anticipated it was extremely difficult to make King understand situation. First of all I feel he has failed considerably during recent months and Crown Prince is also concerned with this phase of situation. King stated several times that he had introduced security in SA as a result his liberality to tribes and he made reference to necessity expenditures by him outside SA to maintain Saudi influence.

I emphasized my remarks were not directed at question of manner in which he disposed his revenues but at their proper conservation and their orderly expenditure. I also said I was not criticizing any individuals but I likened situation to that of once small store whose accounts might first have been kept in head of owner but which were now too complex for any one man.

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Toward end Fuad remarked in aside he thought it was difficult for King to grasp exactly what I was aiming at. I then said to His Majesty: “I have seen Russian Revolution. We have witnessed recently collapse of great regime in China. World is in state of great turbulence. Changes are inevitable. I cannot speak too seriously in expressing to Your Majesty my belief financial reforms are essential in SA. I have full faith in present stability regime but if situation allowed continue indefinitely it cannot but have seriously adverse effect. I have no axe to grind. I am speaking not as Ambassador but in capacity of Saudi as Your Majesty has so frequently described me. I would have been recreant to extraordinary confidence Your Majesty has shown me if I were not to make my apprehensions known to you. If you do not believe me then take counsel of your sons and of your advisors and if you find my words idle tell my government you have no trust in me.” King stopped Fuad short and said he would not permit him to express any such thought. He then said, visibly moved “I knew you were friend. But you have established it now beyond all question. I want you to feel free to express to me at all times any question which is on your mind with same frankness you have shown today.” I added that I had no suggestions offer His Majesty as that would be presumptuous but I hoped he would invite his counselors to look into question and propose remedies.

When I left Fuad said he could not be more grateful. He added he feared nothing radical would come of talk but it could not possibly do any harm and it might well give push toward those reforms for which so many were crying in country.

Childs
  1. Repeated to London, Cairo, Damascus, Baghdad, Beirut, and Amman.
  2. Abdullah Sulaiman, Saudi Arabian Finance Minister.
  3. Abdullah Effendi.
  4. Fuad Hamza, Adviser to the King.