Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-02-03

Aa0NAAS ACOAA COkA1HlCJC0 LAoJ
advisers of the President anc
King began yesterday a series u
discussions about specific pro-
jectS.
1t is understood that the Kings
formal agreement to some ar
rangement for renewing Uncle
Sans lease on the strategic
Dhahran air base awaits more
detailed exploration by his ad-
visers of what arms and eco
nomic aid he can get in return.
King Saud has also sought the
sympathetic understanding Of
President Eisenhower and the
Secretary of State on the dispute
with Great Britain over the Blu
raimi GASES in the eastern Arab
bian peninsula. British-led forces
of local potentates ousted Saudi
troops from the GASES about is
months ago. in the midst Of arbi-
tration proceedings at Geneva to
determine the rightful sovereign
there.
Territory Disputes
For the Saudis, getting a set
Element of Buraimi is as i'm
portant as gettin agreement on
administration of the Suez canal.
They may want the United
States to intercede with Britain
so negotiations for a settlement
can be resumed.
Another dispute about sover-
eighty over two islands in the
middle of the Persian gulf is also
understood to have been brought
up by the Saudis. The islands
themselves. called Arabiyah and
FariSiyah. are each less than a
square mile in area and unin-
habited.
But who asserts sovereignty
over them would be important
in establishing underwater oil
claims in the Persian gulf. Oil
has already been discovered by
the Arabian American Oil Com
pany in the general vicinity of
the islands at Safaniyah.
It would be easily exploited in
the comparatively shallow gulf.
Used U. S. Equipment
Britain has backed its favor
lite, the Sheik of Kuwait. in try
ing to establish claim TO the
islands. Iran ousted a small
Saudi occupation force from
Arabiyah last November. using
some of its United States Navy
supplied landing ships to carry
in troops. The Saudis protested
to Washington.
The Iranians have not with
drawn, but have offered to do so
If the Saudis promise not to re-
occupy Arabiyah. King Saud
claims both Arabiyah and Farsi
yah. and dates his claim to 1949.
Many of King Saud's economic
problems, the United States feels.
are "bankable," that is can be
handled through regular loan
channels in commercial banks,
the international reconstruction
and Development Bank, or the
United States Export-Import
Bank.
One complication in the case
Of King Saud is his aversion to
paying interest on loans. The
Koran forbids charging interest
as usury.
Mining Projects Discussed
American officials are UNDER
stood to have advised obtaining
loans with service charges" in
stead of interest.
What loans King Saud would
need would probably be short
term, however. because he would
soon be getting considerable
revenue from them.
There is some puzzlement
about the extent Of mining prof.
ects which can be exploited in
Saudi Arabia.
Gold mining was an ancient
art in Saudi Arabia. Some re-
ports say that Solomon mined
gold in the mountains north of
Mecca. These sites were re-
worked in the 1920s and 1905.
Some iron deposits are said
to be located in northwest Saudi
Arabia. along the Gulf of Aqaba,
but it is questionable whether it
would be economically feasible
to mine them. Silver and cop
per is also said to be available
but again in small quantities.
There has also been talk of
uranium deposits in the Saudi
Arabian peninsula, but no au-
thentic reports of stable strikes.
Potable water has just been
discovered some $500 feet below
Riyadh. and the King is already
making arrangements to tap this
source. especially important in
his parched desert monarchy.
The principal port develop
ment King Saud has in mind pre-
sumably would be Dammam,
near the Arabian American Oil
Company fields on the Persian
Gulf. Dammam is already the
leading port of the Gulf.
Bank Membership Needed
1t is a railroad terminus. I'M
usual for its seven-mile cause
way into the gulf to reach a
water-depth sufficient to accom-
modate freighters.
Before King Saud could get a