257. Editorial Note
On January 29, Dulles, Hoover, Rountree, and Goodpaster met with the President at the White House for a briefing on the visit of [Page 415] King Saud. The meeting lasted from 2:25 to 3:52 p.m. (Eisenhower Library, Record of President’s Daily Appointments) In a memorandum of January 29, entitled “Notes on Meeting With the President January 29 Concerning the Visit of King Saud,” Rountree noted that Eisenhower had endorsed the idea of mentioning to Saud during their initial meeting the problem of the Dhahran agreement and the arms question, and that the President had suggested that their advisers engage in detailed discussions separately. Rountree added that during the meeting he had informed the President that the $50 million proposal suggested by the JCS had been reduced by the Department of Defense to $35 million. According to Rountree, the President noted that negotiations might begin with the $35 million plan, and, if it proved necessary, consideration could be given to raising the amount. A notation on Rountree’s memorandum indicated that his notes were “informal and uncleared.” (Department of State, Conference Files: Lot 62 D 181, CF 833) According to a memorandum of conversation of the January 29 meeting prepared by Goodpaster, the President also asked the Secretary of State “how stiff a line” he thought should be taken with King Saud regarding Egypt. Dulles replied, inter alia, that the Egyptians were violating the United Nations Resolution of 1949 and the armistice agreements, adding that the Saudis were adopting a “very tough line” regarding the “continued existence” of Israel and Israel’s use of the Gulf of Aqaba. Concerning aid to Jordan through Saudi Arabia, Eisenhower indicated a preference for the “bi-lateral” method. The President also inquired if certain statements in the briefing book suggested that the United States should not be “over-friendly” with the Saudis. Dulles responded that “we are ready to protect the Saudi Arabians against the USSR, but are not anxious to get into their quarrels with Britain.” (Eisenhower Library, Whitman File, Eisenhower Diaries, Memoranda of Conversations with the President) In a meeting of January 30, Hoover informed the OCB that as a result of discussion between Secretary Dulles and the President, it was agreed that the determination of the maximum expenditure would be left to the President. Hoover added that a cost of $50 million was likely and might even be exceeded. (Department of State, OCB Files: Lot 62 D 430) In the course of a telephone conversation with Gordon Gray, on January 30, Dulles remarked that in the Department of State’s opinion there was no possibility of getting the air base $7.5 million per year. The Secretary added that the Department was disappointed over the decision to cut back the amount to $35 million. Dulles also expressed concern that, if no agreement was reached, Saud might return home and line up with the Egyptians. (Eisenhower Library, Dulles Papers, General Telephone Conversations)