RESTRICTED
2
HKB 020 127
043007 MDLOAN 7620
VE
RESTRICTED
FM FCO
TO PRIORITY BERNE
TELNO 151
OF 21180OZ SEPTEMBER 90
가
AND TO PRIORITY OSLO, STOCKHOLM, SINGAPORE, VIENNA, KUALA LUMPUR AND TO PRIORITY BANDAR SERI BEGAWAN, RIYADH, JEDDA, DOHA, BAHRAIN AND TO PRIORITY MUSCAT, HELSINKI, CANBERRA, WELLINGTON, REYKJAVIK AND TO PRIORITY MEXICO CITY, CARACAS, HONG KONG, MODUK, SEOUL AND TO PRIORITY JAKARTA
INFO ROUTINE EC POSTS, TOKYO, UKREP BRUSSELS, WASHINGTON INFO ROUTINE ABU DHABI, OTTAWA, ANKARA, AMMAN, CAIRO, LAGOS INFO ROUTINE UKMIS NEW YORK, UKMIS GENEVA
INFO ROUTINE UKDEL IMF/IBRD WASHINGTON
GULF CRISIS
SUMMARY
BURDEN-SHARING
1. YOU SHOULD TAKE ANY OPPORTUNITIES TO LOBBY HOST GOVERNMENTS FOR A CONTRIBUTION TO ECONOMIC ASSISTANCE TO STATES MOST AFFECTED BY THE COSTS OF MAKING SANCTIONS EFFECTIVE. ANY POSITIVE INDICATIONS
BEFORE THE FOREIGN AFFAIRS COUNCIL ON 4 OCTOBER WOULD BE PARTICULARLY HELPFUL.
DETAIL
-
2.
THE BURDEN OF MEETING THE COSTS OF IRAQ'S AGGRESSION IS FALLING PRIMARILY ON THE SHOULDERS OF G7 COUNTRIES. (SAUDI
ARABIA IS MAKING A SUBSTANTIAL CONTRIBUTION BUT IS ALSO BENEFITTING FROM INCREASED OIL REVENUES). IT IS ONLY RIGHT
THAT THIS BURDEN SHOULD BE SHARED AMONGST OTHER COUNTRIES IN A
POSITION TO CONTRIBUTE. THESE WILL BE MAINLY OTHER MEMBERS OF
OECD, NIES AND DEVELOPING COUNTRY OIL PRODUCERS. THE CASE FOR SUCH CONTRIBUTIONS RESTS ON THREE INTERESTS SHARED BY THE
INTERNATIONAL COMMUNITY.
A) COLLECTIVE SECURITY: ALL MEMBERS OF THE WORLD COMMUNITY WILL
BENEFIT FROM AN EFFECTIVE RESOLUTION OF THE GULF CRISIS. B) DEFENCE OF TERRITORY: THE GULF STATES ARE THE MAIN BENEFICIARIES FROM HAVING THEIR TERRITORY AND OIL EARNINGS DEFENDED.
OIL
C) SAFE GUARDING OIL SUPPLIES AND KEEPING OIL PRICES DOWN: IMPORTING COUNTRIES HAVE A SUBSTANTIAL INTEREST IN THE SUCCESS OF THE MILITARY EFFORT TO THE EXTENT THAT IT SAFEGUARDS OIL SUPPLIES AND HOLDS DOWN OIL PRICES IN THE MEDIUM TERM AND THEREFORE REDUCES UNWELCOME INFLATION AND BALANCE OF PAYMENTS EFFECTS. THOSE WHO ARE GAINING FROM HIGHER OIL PRICES HAVE A
1
PAGE
RESTRICTED