EASTERN DEPARTMENT ARABIA FROM CONFIDENTIAL Received in Registry MINUTES This despatch surveys the position of Cable and Wireless in the various Gulf States. Except in Bahrain where there seems to be no problem for the moment, the picture is rather gloomy. 2. Kuwait presents the principe difficulty, as a position of dead-lock seems to have been reached. Has anything come of the suggestion in Mr. Logan's letter at EA 1431/5 that Cable and Wireless should send a senior official to Kuwait to negotiate? (Print) 3. I think we may agree with Mr. Burrows' broad conclusions that 109894 (How disposed of) (i) British prestige in the Gulf is involved particularly as Cable and Wireless are known to be controlled by Her Majesty's Government. The provision of telephone and telegraph services has come to be part of the British connexion with the States and if the services provided are unsatisfactory or are withdrawn this will represent a weakening in our position in the Gulf. (ii) Cable and Wireless can only maintain all their functions in the Gulf if they are prepared to regard them as a whole and to take the good with the bad. (iii) The problem should be thoroughly reviewed in this light and a new effort made with the Rulers to improve the position. 4. You will perhaps wish to send a copy of the despatch to the G.P.0. Subject to this recommendations a meeting with Cable and Wireless to discuss the whole problem might be useful. (Action completed) (Index) (C.T.E. Ewart-Biggs) References to later relevant papers June 1, 1954. 45461 /The
