File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎250r] (502/656)

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^ tele.'rram dated tho 4tJi August 1940
. . ^oirnDTxrg Qf tho 3ah'ain Petroleum. Gc^apany
Limited, Bahrain, to Horron SSS San FraSiLo.
^ Kijf to you and a3J. other ocssmnioatlong
you and iRussell still hold good and opinion mioh
stronger nop; than then, Hnvo discussed fully v^th
Lenahan \rho said j:?r©sont , .plant uanocesoary and pro
posed plant highly inadvisable at present,. Have
discdSoOd with Q.hXi^er who is v /ith is© not? and agrees
unwise go ahead. Have discussed with Hiilhv who spent
woek with mo and a&mm vdth all points of rinportanoe
in ny smreral cables and letters and fully confirms
j oiir views. Philby says Lenahan sliould have and use
sane information 1 gave Hiilby conoeming certain pro
visions our Concession such as our right import crude
and to use present or additional capacity refining
Imported crude above mininsum all of v /hioh unlmown to
Philby and to others of import ranee. Also at own
instance stressed importance nuch closer ateiaistra-
tivo co-ordination both sides to avoid feeling that
two operations are competitive rather than supplenent-
ary. Also confirmed ny previous vIoits concerning
Present need other side is money not over hasty indus
trialisation which has already exceeded any possible
present adaptation of Custons and Governmental adninis-
tration. I-ly opinion choice should be between here
end Australia and probably here with pipeline. 0hlir:er
says n l!j ideas sane as above and recoranend do n#t build
' there because labour restrictions unpredionable Govorn-
nental re dilations and not political requireiient •
:,;hat venture should pay dividends before further mjor
investment".
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