Coll 30/217(1) 'Trans-Arabian Pipe Line (Persian Gulf - to Mediterranean)' [‎29v] (58/307)

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tons a year to about 9 million tons, though this programme was not yet
definecl and had not previously been reported to
Materials. ’ '
11. SIR WILLIAM FRASER said that the 21+" pipe required would probably have
to be obtained from the United States. He would ensure that the possi**' ^
bility of arranging supplies from U.K. manufacturers was constantly con~
stantly considered, but he understood they were fully taken up at present
with orders for 16 ” iDipe and it seemed unlikely that they would be in a
position to develop capacity for 2V pipe in time to complete the
A.I.O.C./S.O.N.J. scheme within the programmed period of about three years.
Shortage of steel in the U.K. was also a limiting factor.
12. IT WAS AGREED that the Ministry of Fuel and Power would institute en
quiries into the possibility of arranging the supply of pipe for the scheme
by U.K. manufacturers.
13* SIR WILLIAM FRASER thought that construction and operating costs would
X^robably work out to be roughly in dollars and 30^ in sterling and wouJd,
therefore, balance approximately with the capital contribution made by the
American and British partners. He mentioned that if the operating company
were registered in the U.S. the A.I.O.C. should have little difficulty in
raising their $ 0 % share of the capital in the United States in the form of
a loan repayable in say 20 years and bearing lev/ interest.
Y/ayleaves.
14. SIR WILLIAM FRASER said he would welcome the assistance of H.M.G-.
representatives in the Middle East in the negotiation of the pipeline way-
leaves. He thought that the negotiation of rights from Trans-Jordan and
Palestine should not present much difficulty, but Iraq might well wish to
hamper this scheme in its desire for the development of iis own oil
resources. " '
15. IT WAS AGREED that
(i) in view of the impending announcement of this pipeline scheme in
the British and U.S. press, .u.I.O.C. in consultation with HpM.Embassy,
would inform the Iraqi Prime Minister of the project and indicate their
desire to enter into negotiations for wayleaves in the near future;
(ii) Foreign Office would arrange v/ith H.M* Representative in Bagdad
(and elsewhere as necessary) to support A.I.O.C. in their negotiations
for wayloave rights;
(iii) Foreign Office would advise A.I.0.0. as to whether it seemed
expedient that A.I,0.0, should encourage the S.O.N.J. to seek
parallel diplomatic support by the U.S. Government;
(iv) it appeared desirable, for the present, that British rather than
U.S. personnel should undertake the negotiation of way leave rights.