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Home / World

Saudi Arabia transfers $152 million to US amid Khashoggi crisis

By John Hudson
Washington Post·
17 Oct, 2018 09:06 PM4 mins to read

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US Secretary of State Mike Pompeo with the Saudi Crown Prince Mohammed bin Salman in Riyadh, Saudi Arabia, yesterday. Photo / AP

US Secretary of State Mike Pompeo with the Saudi Crown Prince Mohammed bin Salman in Riyadh, Saudi Arabia, yesterday. Photo / AP

The United States received a payment of US$100 million ($152m) from Saudi Arabia yesterday, the same day Secretary of State Mike Pompeo arrived in Riyadh to discuss the disappearance of journalist Jamal Khashoggi, a State Department official confirmed today amid global calls for answers in the case.

Saudi Arabia publicly pledged the payment to support US stabilisation efforts in northeastern Syria in August, but questions persisted about when and if Saudi officials would come through with the money.

The timing of the transfer, first reported by the New York Times, raised questions about a potential payoff as Riyadh seeks to manage the blowback over allegations that Saudi agents were responsible for Khashoggi's disappearance.

The State Department denied any connection between the payment and Pompeo's discussions with Saudi officials about Khashoggi, a Washington Post contributing columnist.

"We always expected the contribution to be finalised in the [northern autumn] time frame," Brett McGurk, the State Department's envoy to the anti-Islamic State coalition, said. "The specific transfer of funds has been long in process and has nothing to do with other events or the secretary's visit."

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Saudi Arabia, an oil rich monarchy and staunch US ally, has long relied on its financial largesse to persuade partners to support its foreign policy objectives.

Western diplomats suspect that the kingdom will also compensate Turkey for its willingness to launch a joint investigation on Khashoggi's disappearance - a payback that could come in the form of large-scale debt relief, strategic buyouts or other arrangements that boost Turkey's ailing economy.

Khashoggi's disappearance has hurt the reputation of Saudi Arabia's crown prince, Mohammed bin Salman, whose close relationship with US President Donald Trump's son-in-law and senior adviser Jared Kushner has put him at the centre of the Administration's Middle East policy.

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Turkish authorities say Khashoggi was killed on October 2 during a visit to the Saudi consulate in Istanbul to obtain a document required to get married.

Trump "has had harsher words in the last week or so for Stormy Daniels, Senator Elizabeth Warren and Taylor Swift, than he has had for the Saudis responsible for the likely butcher and slaughter of a Washington Post columnist," points out @jaketapper https://t.co/12qaYjEPmU pic.twitter.com/Cmd8slnG8k

— The Lead CNN (@TheLeadCNN) October 17, 2018

Trump initially promised "severe punishment" for Saudi Arabia if the United States determined that Saudi agents killed Khashoggi. But the President has since floated an alternative theory involving "rogue killers" and compared the case to the sexual assault allegations against recently confirmed Supreme Court Justice Brett Kavanaugh.

"Here we go again with you know you're guilty until proven innocent," Trump told AP in an interview.

During Pompeo's visit to Saudi Arabia, the top diplomat and the crown prince smiled for the cameras and emphasised the two countries' mutual interests. When asked if he had learned any details about Khashoggi's disappearance, Pompeo told reporters that "I don't want to talk about any of the facts; they didn't want to, either, in that they want to have the opportunity to complete this investigation in a thorough way."

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The Saudi payment to support stabilisation efforts in Syria is a cornerstone of Trump's "America First" strategy, which calls on regional countries to take on a greater burden for security challenges, including Syria. In August, US officials hailed the Saudi pledge and said the United States would use US$230 million earmarked to help stabilise Syria for other purposes.

McGurk, the State Department envoy, arrived in Saudi Arabia on Saturday to discuss how the US$100 million in stabilisation money would be spent, said a State Department official.

The official said the timing was a coincidence, and that transferring the US$100 million "has multiple steps all of which clicked through over the past two months."

Middle East experts said the timing of the transfer likely sent a clear message to the Trump Administration.

"In all probability, the Saudis want Trump to know that his cooperation in covering for the Khashoggi affair is important to the Saudi monarch," said Joshua Landis, a professor at the University of Oklahoma. "Much of its financial promises to the US will be contingent on this cooperation."

The Saudi Embassy in Washington did not respond to requests for comment.

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Trump says he has no financial ties to Saudi Arabia. I, ahem, beg to differ.
Here are the receipts:pic.twitter.com/3B2iHazk4P

— Mehdi Hasan (@mehdirhasan) October 17, 2018
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