CONFIDENTIAL
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The Prime Minister and the Foreign Secretary raised Hong Kong's
problems with the Saudi and Algerian Oil Ministers during their visit to
London on 29 November, pointing out that Hong Kong is a dependent
territory and therefore associated with HMG's policies in the Middle East.
It should be treated as a "friendly" country in the same way as the UK.
Shaikh Yamani agreed to look into the matter. HM Ambassador in Jedda
gave the Ministry of Foreign Affairs on 4 December figures provided by
the Governor of Hong Kong. On 6 December he reported that King Faisal
had ordered the Saudi Petroleum Ministry to assure the supply to Hong Kong
of 3,400 tons of light diesel oil and between 13,200 and 21,600 tons of
fuel oil monthly. The Saudis said they would rely on HMG to ensure that
there was no diversion of this oil to other countries.
LINE TO TAKE
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The effects of the Arab cutbacks of oil exports are being felt in all
oil importing countries. The UK itself, though listed as "friendly" and
therefore exempted from the general cutbacks by certain Arab producers,
is not insulated from the general shortage. We have already announced
a 10 per cent cutback of allocated deliveries and further contingency plans
are in reserve,
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Although Hong Kong also cannot be isolated from the general world
difficulty over oil supplies, we have taken steps to ensure that Hong Kongs
legitimate needs are not ignored.
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CONFIDENTIAL