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OCR Page 1 of 8United 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.