Editor's Note
The Saudi-U.S. Relations Information Service would like to note the important contribution made by the Congressional Research Service (CRS) for providing this timely update to the state of Saudi-U.S. relations.

This SUSRIS Item of Interest provides a summary of the report, highlights of the most recent developments in the relationship and a link to the complete CRS Issue Brief.

The Congressional Research Service is the public policy research division of the U.S. Congress. As a legislative branch agency within the Library of Congress, CRS works exclusively and directly for Members of Congress, their Committees and staff on a confidential, nonpartisan basis.



SUMMARY

Saudi Arabia, a monarchy ruled by the Saudi dynasty, enjoys special importance in the international community because of its unique association with the Islamic religion and its oil wealth. Since the establishment of the modern Saudi kingdom in 1932, it has benefited from a stable political system based on a smooth process of succession to the throne and an increasingly prosperous economy dominated by the oil sector. Decrees by King Fahd in March 1992 establishing an appointive consultative council and provincial councils and promulgating a basic law providing for certain citizens' rights could signal a gradual trend toward a more open political system.

The United States and Saudi Arabia have long-standing economic and defense ties. A series of informal agreements, statements by successive U. S. administrations, and military deployments have demonstrated a strong U. S. security commitment to Saudi Arabia. Saudi Arabia was a key member of the allied coalition that expelled Iraqi forces from Kuwait in 1991. Saudi Arabia hosted U.S. aircraft enforcing the no-fly zone over southern Iraq; between the two Iraq wars of 1991 and 2003; however, Saudi Arabia did not offer the use of its territory for major air strikes against Iraq in response to Iraqi obstruction of U.N. weapons inspections. Moreover, Saudi officials expressed opposition to the U.S.-led military campaign launched against Iraq in March-April 2003, although they reportedly permitted certain support operations by U.S. and British military forces, as well in addition to making some facilities available to them.

Bombing attacks against several U.S. operated installations in Saudi Arabia have raised some concerns about security of U.S. personnel and further security measures have been implemented. Saudi Arabia convicted and executed four Saudi nationals for carrying out a bombing in 1995. After extended investigations, on June 21, 2001, a U.S. federal grand jury indicted 14 members of Middle East terrorist organizations for a bombing in 1996, but none of them is in U.S. custody. A third bombing occurred on May 12, 2003, when suicide bombers attacked three housing compounds inhabited by U.S. and other western personnel, killing an estimated 34 people including as many as eight U.S. citizens.

U.S. officials have cited Saudi support in the aftermath of the September 11, 2001 attacks, including intelligence sharing, law enforcement activities, and tracking of terrorist financing. Some commentators maintain that Saudi domestic and foreign policies have created a climate that may have contributed to terrorist acts by Islamic radicals. Saudi officials reject this viewpoint and maintain that they are working with the United States to combat terrorism.

Other principal issues of bilateral interest include the Saudi position on the Arab-Israeli conflict, security in the post-war Gulf region, arms transfers to Saudi Arabia, Saudi external aid programs, bilateral trade relationships, and Saudi policies involving human rights and democracy. In early 2002, Crown Prince Abdullah proposed a peace initiative based on Israeli withdrawal from occupied territories in return for normal relations between Arab states and Israel.

MOST RECENT DEVELOPMENTS

On July 29, 2003, Saudi Foreign Minister Prince Saud al-Faysal called on the Bush Administration to release a classified section of a joint congressional report covering intelligence community actions before and after the terrorist attacks of September 11, 2001. The still-classified section reportedly described alleged Saudi links with persons involved in the attacks and indicated that senior Saudi officials channeled charitable gifts to individuals that may have helped fund the attacks. Prince Saud and other Saudi officials denied the allegations and asked that the classified section be released to enable the Saudi government to rebut the allegations. The Bush Administration refused on the grounds that disclosure could reveal U. S. intelligence sources and methods and might compromise the ongoing investigation of the 9/ 11 attacks.

Members of Congress also requested release of the classified section, some of them expressing concern that the Bush Administration is trying to avoid publication of information that might embarrass Saudi Arabia. One Member called for replacement of the Saudi Minister of the Interior for failing to stop the flow of money to terrorist groups. At a hearing on July 31, two other Members asked the U. S. Treasury Department to provide a list of Saudi organizations investigated by the Treasury Department but not publicly named as terrorist entities.