Oil: Dubai p.4

FO 371/179936 1965
CONTENTIAL

H.B.M. POLITICAL AGENCY,
TRUCIAL STATES,

DUBAI.
January 12, 1965.

I notice that there is no reference in Weir's letter
BT 1534/24 of December 30 to Shaikh Rashid's being informed
concurrently with Shaikh Shakhbut of the Western limit of
the Dubai Marine Areas concession which we propose to give
to Continental.

و2

You will remember that James Craig wanted to use
Dubai Marine Areas' wish to drill within the safe area to
induce Shaikh Rashid to accept the Ras Hasian point as his
boundary with Abu Dhabi. The terms in which it is suggested
that Hugh Boustead speak to Sheikh Shakhbut would not, if
put to Shaikh Rashid, achieve this. Only the use of the
Company's wish to drill, which I take it we are still pre cluded from using, would have a chance of effecting that.
Nevertheless I think it would be unwise if Sheikh Shakhbut
were to be approached about his frontier with Dubai without
Sheikh Rashid receiving equal treatment, especially as he
will feel that his claims are being brushed aside without
his being informed. He has many sources of information in
Sheikh Shakhbut's entourage and would know of the approach
very soon. Our relations with him would suffer at a time
when we can ill afford to lose his confidence and goodwill.

و3

I hope, therefore, that if Hugh Boustead speaks to
Sheikh Shakhbut on this, I may be instructed to approach
Sheikh Rashid at the same time. If this is agreed, perhaps
he could let me know when he intends to see the Ruler so
that I can coordinate my action with his.

I am sending copies of this letter to Hugh Boustead
in Abu Dhabi and to Michael Weir in Arabian Department.

(H.G. Balfour-Paul)

His Excellency,
Sir William H. Luce, G.B.E., K.C.M.G.,
Political Residency,

BAHRAIN

CONFIDENTIAL