gwern comments on Harry Potter and the Methods of Rationality discussion thread, part 2 - Less Wrong
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From the flashback scene near the beginning of Book 6 Chapter 1, where the Muggle PM first meets Cornelius Fudge:
So it's implied that no Obliviation is needed. On the other hand, I wouldn't it past Eliezer to decide that this is not credible in a story for adults. And after all, Fudge never really answered the question.
Thanks for the lookup. Yes, that implies that a limited number of muggles thought to be 'safe' are permitted to know about the wizarding world.