CONFIDENTIAL
15
136551
MDHIAN 4030
HKB 020/27.
CONFIDENTIAL
FM MUSCAT
TO IMMEDIATE FCO
TELNO 465
OF 141014Z OCTOBER 90
INFO IMMEDIATE ABU DHABI, RIYADH, DOHA, JEDDA
INFO IMMEDIATE UKDEL IMF/IBRD WASHINGTON, UKMIS NEW YORK
MY TELNO 454: BURDEN-SHARING
SUMMARY
1. OMANIS AGREE TO CONSIDER PAYING FOR FUEL FOR RAF DETACHMENTS PROVIDED WE CAN SET A MONTHLY CEILING.
DETAIL
2. I INVITED QAIS ZAWAWI, DEPUTY PRIME MINISTER FOR FINANCE AND ECONOMIC AFFAIRS, TO DINNER FOR HRH THE DUKE OF GLOUCESTER ON 13 OCTOBER AND TOOK THE OPPORTUNITY OF FOLLOWING UP MR HAMILTON'S DISCUSSION WITH THE SULTAN IN SALALAH (TUR). I WENT OVER THE ARGUMENTS FOR ALL OIL-EXPORTING COUNTRIES MAKING A CONTRIBUTION ON THE LINES OF (FCO TELNO 151 TO BERNE): AND RELAYED THE SULTAN'S INITIAL REACTION. ZAWAWI SAID HE HAD BEEN GIVEN AN ACCOUNT OF THE AUDIENCE.
3.
ZAWAWI SAID HE WAS HAPPY TO DISCUSS THE PROPOSAL THAT OMAN SHOULD PROVIDE FREE FUEL BUT WHAT HE COULD NOT DO WAS TO GIVE US A BLANK CHEQUE. HE NEEDED TO KNOW AN APPROXIMATE FIGURE FOR WHAT IT WOULD COST ON, SAY, A MONTHLY BASIS. I SAID THAT AS WE WERE SETTLING THE BILLS HERE WE COULD PROVIDE A FIGURE. I UNDERTOOK TO LET HIM HAVE AN ESTIMATE SHORTLY (WE ARE WORKING THIS OUT).
4.
ZAWAWI SHOWED HOWEVER IN HIS ATTITUDE THAT HE REALLY WAS NOT VERY HAPPY TO MAKE THIS CONTRIBUTION. HE SAID AT FIRST THERE OUGHT TO BE A GCC SOLUTION. OMAN WAS ALREADY HELPING THE KUWAITI REFUGEES HERE AND ESTIMATED THAT THAT WOULD HAVE COST ABOUT R03 MILLION BY THE END OF THIS YEAR. HE CONFIRMED THAT THE KUWAITIS WERE NOT PICKING UP ANY OF THIS BILL. HE BELEIVED THAT THE BURDEN SHOULD BE BORNE BY SAUDI ARABIA, KUWAIT, THE UAE AND QATAR WHO HAD AMPLE RESOURCES AND LIMITED DEVELOPMENT NEEDS. IF THEY WANTED TO, THEY COULD EASILY INCREASE THEIR OIL PRODUCTION TO TAKE ADVANTAGE OF PRESENT PRICES: OMAN COULD NOT. OMAN WAS STRUGGLING TO COPE WITH BASIC DEVELOPMENT (AS THE MINISTER OF COMMERCE SAID TO ME RECENTLY ONLY TWELVE OUT OF FORTY-TWO WILAYETS IN OMAN HAD PIPED WATER). OMAN WAS ABOUT TO
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CONFIDENTIAL
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