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United suld Winhis Sandi planes - working 4/22 HI- call own Bube April 21, 1995 MEMORANDUM FOR HAROLD ICKES FROM: JENNIFER O'CONNOR SUBJECT: SAUDI PLANES You asked me to find out for you the status of the McDonald Douglas/Boeing sale of planes to the Saudis. Owen Bieber told you the Saudis need to announce the sale NOW or there will be layoffs. The status is it is stalled and on the Saudi King's desk Jonathan Sallet told me the negotiations are complete on the contracts for the sale. The financing package has been put together. The King has not signed the contracts yet nor accepted them. Sallet speculated that the issues for the King may be that he may want to pay cash instead of accepting the financing, or that he is not sure how to balance spending in the kingdom and isn't sure if cash or financing makes sense for the planes. Commerce and Ambassador Ray Mabus both thing the deal will eventually go through. But the timing is up in the air. It could be dragged on for another year, or it could happen sooner. Commerce and State don't know what to expect in terms of timing, but are worried it could be a long time. The issue is sitting squarely on the King's desk. Bieber wants you to help move it faster. David Ifshin's call was to move it faster too. He wants the President to call the King about it. Sallet thinks Ambassador Mabus also wants the President to call the King about it. THE PRESIDENT IS CALLING THE KING AT 2:15 TODAY to encourage him to sign the contracts. To win points, you might call Bieber and let him know that the President is personally involved and at the highest levels we are pushing to make this happen fast. I have included for you the President's talking points for his conversation with King Fahd. They are classified.