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% Wer ee b Naeem ce ee ee re ac ee DETAILS: Thumbnati Background Sketch of pnanran, Saudi aracia Sau abia is absolute monarchy under the new King and Prime Minister #@audi Ab ay, ziz“ALYSAUD. The new King, who would like to walk in the foots eps of his father (who was an excellent ruler), is having difficulty emulating/t though he recently appears to have stabilized his position and is taking a more active interest in Arab affairs. <A number of his policies, however, have run counter to U. S. interests. He apparently intends to continue the Saudi-Traq rivalry over influsnes in Syria and Jordan. Hs also has indicated an adamant attitude in the Saudi Arabian-British two-year- old dispute over the Buraimi Oasis. Furthermore, he has entered into an agreement (the Onassis Agreement) which establishes a competitor to the U. 8. for the movement of Aramco o11. The procedural details regarding this agreement could seriously affect the transporta- tion of oil for the U. S. Armed Services by restricting or perhaps prohibiting the carrying of Arabian o11 by the military sea transportation service. The internal administration is almost a family affair, the Deputy Mini ster and Foreign Mintater being Crown Sada > ree Prineg alsajyI ziz Piso nd,the | Minister of Defense peing Prince Wie TalWibnfal yhzi SAUD. The economy of Saudi Arabia revofves arofind the ‘question of o11, The exploitation of the very fertile oil fields of-this country is in the hands of a few major companies, from which the country receives a royalty on the production. Also around this pivotal o11 reserve depends the ability of the Western powers to supply the industrial requirements of Western Europe. Visit to Dhahran, Ssudt Arabia ~ General Trudeau, G~2, and his party, accompanied by the Bureau's Army Liaison Representative, John F, Sullivan, arrived at Dhahran, Seudi Arabia, on April 28, 195). Upon arrival at the Dhahran Air Base, General Trudeau and key members of the party were briefed in the office of Brigadier General Orrin Grover on the subject of the Saudi Arabian Army Forces, and the organization and functions of the Military Advisory Group (MAAG) in