I guess I was taking a mix of statements ... it appears the State Department said that but check this:
U.S. Secretary of State Colin Powell says he hopes to be able to remove Saudi Arabia from the State Department list of religiously intolerant countries.
Powell paid tribute to the Saudi leadership in terms that contrasted strongly with the State Department's report on the kingdom's policy toward religion.
But Powell said the State Department report was a response to American legislation that requires a review of religious freedom around the world. He said the report's finding did not mean Washington would punish Saudi Arabia.
http://www.freerepublic.com/focus/f-news/1218986/posts?page=15#15
Powell contradicting his own State Department ... double-talk ... but, no surprise, because when we're dealing with and hearing about the Saudis, there's a whole lot of double-talk all the time.