Saudi Arabia: Development of oil resources p.5

FO 371/35159 1943
E2981
184/298475

a

WARNING: This is a FUEL/ELFUNOCOP telegram and must not be distributed to persons outside British Government Service. No reference to VELEFUNOCOP telegram should be made in a telegram in any other series. CYPHER)

FUEL NOCOP

FROM WASHINGTON TO MINISTRY OF FUEL AND POWER

D. 2.27 8.m.

Viscount Halifax No. 48 ELFU NOCOP 13th February, 1943.

14th February, 1943. 14th February, 1943.

R. 7.50 a.m.

ANESE

IMPORTANT SECRET

TO Sir William Brown from Starling and Wilkinson.

Since despatch of Elfu Nocop No. 25 and with particular reference to first sentence of last paragraph thereof we have obtained explanations of the somewhat unorthodox (grp. omitted: ? way) in which this matter was raised. That angle is now disposed of to our satisfaction.

2. Present situation is that M.A.C. (Air) has referred matter in the first instance to A.P.P.A.C. for preservation and recommendations and on February 10th representatives of this office attended an ad hoc meeting called by Executive Secretary A. P.P.A.C. with our agreement in order to discuss form in which this whole question should be officially tabled at forthcoming A.P.P.A.C. meeting. In other words to rewrite Colonel Lingle's original presentation, main object of which we are now satisfied was to expedite investigations of increased 100 octane production possibilities in Middle East and this not necessarily to involve elimination of Abadan stage 3.

3. Iniabove connexion contents of Fuel Nocop No.50 and No.52 very helpful. It is evident from figures in Fuel Nocop N0.50 and Johnson's memorandum to Colonel Lingle 4637/1 of January 21st which we have now seen that even with production of 29,000 barrels per day in the Persian Gulf there will be little if any surplus production over requirements when taking into consideration the various factors mentioned paragraph 1 Fuel Nocop N0.50 which tend to increase demand. Therefore as we see it the position now is as follows.

(a) We should press for earliest possible approval of further 100 octane expansion in Middle East area. (b) Since Abadan stage 3 is most economical in materials and can be completed for almost twice the production and at an earlier date than the Haifa scheme also without loss of motor gasoline attendant on the latter scheme we should press that at least Abadan stage 3 scheme be undertaken immediately.

(c) We will use information given paragraph 3 Fuel Nocop No.21 for immediate formal presentation of case but past experience has shown that it is essential to file a PD-200 application in order bring matter to a head. View necessity filing PD-200 application it is essential you clear with A.I.0.C. your end since you will have seen from A. 1.0.C. cable to Jackson No. 250 of February 9th that A.1.0.0. London are not prepared at the moment authorise Jackson proceed so
far/

JP.