s
End
OUT FILE
FOREIGN OFFICE, S.W.1.
21st June, 1950.
(ES 1471/1)
When Mr. Rule of Gellatly Hankey and Company Limited came to see me the other day on other business, he raised the question of the collection of royalties which the Arabian-American Oil Company might in future pay to the Saudi Arabian Government in sterling. Gellatly's, who act as the agents of the Saudi Arabian Governgent in a number of financial matters (for example, the collection of pilgrim dues paid in the sterling area), are anxious to know what arrangements are likely to be made for the collection of sterling royalties, with a view, if possible, to securing the agency for this collection for themselves.
2. Mr. Rule realises that this scheme is at present in its very early stages and that its implemeration depends partly on the agreement of the Saudi Arabian Government to accept royalties in sterling from Aramco and partly on Aramco's being allotted a share of the dollar oil which is to be sold for sterling. His present enquiry is merely designed to discover whether, if both these desiderata were fulfilled, the probable arrangements would be such that his Company could gain share of the business. This again, would, of course, be subject to the approval of the Saudi Arabian Government.
3. I am sending a copy of this letter to Loombe at the Bank of England.
M. Stevenson, Esq.,
TREASURY.
(H. A.Dudgeon)
