CONFIDENTIAL. POSSIBLE EXPENDITURE 1957/58 FOR EASTERN DEPARTMENT COUNTRIES. The annex to this minute gives a list of possible expenditure in Eastern Department countries drawn up to meet the proposal in Mr.Dodds-Parker's minu te of December 31. Flag A 2. The British Council items do not represent total proposed British Council expenditure but only the additions which according to Cultural Relations Department the Council are now considering and for which Foreign Office support may therefore be needed. Eastern Department would in principle support these additions. 3. Under "Persian Gulfh an item "unforeseeable contingencies" is shown at £100,000. This appears in no budget estimate. It is inserted as a token figure in an attempt to ensure that when such contingencies arise, as they are likely to do, a reserve of some kind is held to deal with them. For instance, we shall probably encounter increased Egyptian attempts to penetrate the Gull by means which cannot be met by security or political measures. It may be desirable for us to offer to pay for the supply or training of teachers or experts in order to block free offers of such persons from Egypt, or indeed also Syria and Jordan. Secondly, some provision must be made for Buraimi, which is still a focal point of Anglo Saudi relations. For instance, the oasis is at present economically in an unpresentable state particularly in the three Muscat villages where the Sultan appears to be pursuing a policy of deliberate neglect. If this becomes know it might be found desirable to spend something in sprucing it up. Thirdly, after Irag the Persian Gulf is both our most exposed and most important position in the Middle East and it would seem imprudent to hold no reserve to meet inevitable attempts at encroachment. 4. Finally there is an item which falls administratively under Personnel Department but which Eastern Department are happy to sponsor on behalf of the three Middle Eastern Departments since its importance is not inferior to that of any item advanced by any of them. This is the rehabilitation and improvement of the Middle East Centre for Arabic Studies. On November 17, 1955 Ministers approved in principle capital expenditure of up to $15,000 for this purpose on the under standing that detailed implementation would be discussed with the Treasury. I understand that the Treasury have still not sanctioned this expenditure. (D.M.H.Riches) January 2, 1957. Copies to: Mr.Rae Mr.Haigh Mr Rose Mr.Henniker-Major Mr. Watson
