Kuwait Oxygen & Acetylene Company This is a partnership between Mr. Huneidi who is a Palestinian, now a natural ised Kuwaiti, and his Kuwaiti partner Khalid Saleh Askar. The partnership has a complaint against their treatment by the Kuwait 0il Company and had told Tald at Ghusain that they would like to bring it before the Development Board. Tala.at Ghusain suggested that before doing so they should come to me and see whether we could not help to straighten matters out. Hune idi therefore called on me on Thursday, October 11, and told me the following story. 2. About 18 months ago he and his partner decided to set up an oxygen manufacturing plant in Kuwait. His idea was to start with a small plant and then only increase it if sufficient demand was proved. He discussed his idea with Messrs. Lowdon and Blackwood of the K.0.C. who urged him to instal a large plant and who promised that when he had it going K.0.C. would close down their own plant and take all their requirements from him. They offered to lend him 400 cylinders and gave him every encouragement at these interviews with him. He was satisfied with these verbal assurances and had no confirma tion in writing. 3. Before starting up he had an interview with Mr. Turner with whom he discussed prices. Mr. Hune idi said that he could not get down to prices without some idea of the quantity which K.0.0. would require. The reply was that they could take 60 to 70 cylinders a day. The prices he quoted were 40% less than those at which K.0.C. sold oxygen to the town. He was then told that K.0.0. had changed their minds about closing the plant and his prices were not accepted. He then saw Mr. Car swe11 about making a contract, who again discussed the question of price. He quoted Rs.26 per cylinder. Mr. Carswell discussed this with the management and said that if they ordered 1,000 cylinders a month, would he agree to a reduction of price to Rs.25 per cylinder. He did so and Mr. Carswell approved the price but said that K.0.C. could only take 75% of their requirements from him and was asked to supply at this same price. He again agreed to sell on this basis. After this Mr. Carswell said that they could only take 50%, later on only 25% and finally said they could take none at all. He was then promised that they could supply Bechtel-Wimpey's require ments. He had further discussions with Mr. Carswell and Mr. Taylor on the matter of /prices.
