TNAG-0947-FCO40-1166-Oil-developments-in-and-around-Hong-Kong-1980 — Page 40

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FM JEDDA 300900Z OCT 80

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"HEK162/1

CV 1080

CQPY

مد

No fill.

:

ΟΙ

TEL NO 775 OF 30 OCTOBER

INFO ROUTINE HONG KONG

HONG KONG TELNO 1425 TO YOU: PURCHASE OF SAUDI ARABIAN OIL BY HONG KONG GOVERNMENT

1. I AM NOT CLEAR HOW THE PRICE QUOTED IN TUR COMPARES WITH OFFICIAL SAUDI PRICES (DOLLARS 30 PER BAREL F.0.B. FOR MARKER CRUDE): BUT I ASSUME THAT IT IS HIGHER AND THAT THE MIDDLE MEN QUOTED ARE TAKING A COMMISSION. THIS WOULD BE ILLEGAL UNDER SAUDI REGULATIONS WHICH FORBID BOTH THE USE OF MIDDLE MEN AND THE PAYMENT OF COMMISSIONS IN THE PURCHASE OF PETROMIN OIL.

2.

еее

PREVIOUS CORRESPONDENCE WITH THE DEPARTMENT (NOTABLY FALLS LETTER MEL 162/372/1 OF 1 APRIL TO ME) HAS ESTABLISHED THAT HMG SHOULD NOT BECOME INVOLVED IN DEALS WHICH CONTRAVENE SAUDI REGULATIONS. I DO NOT KNOW TO WHAT EXTENT THE HONG KONG GOVERNMENT IS COVERED BY THIS RULING: OR TO WHAT EXTENT HMG WOULD BE SUBJECT TO CRITICISM IF THE HONG KONG GOVERNMENT'S INVOLVEMENT IN SUCH DEALS BECAME PUBLIC KNOWLEDGE. IF THE DEAL INVOLVED HMG ONLY, I WOULD RECOMMEND AGAINST OUR INVOLVEMENT.

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CRAIG

MINIMAL

HK & GD

MED

FS & SD

}

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