Page 288 - Records of Bahrain (7) (ii)_Neat

678 Records of Bahrain

CONFIDENTIAL
FROM BAHRAIN TO POHBIGH OFITO1
Cypher/OTP FOREIGN OFFICE AN1) VmiTKHAI.L
distribution

Sir B. Burrows
No. 1012 D. 10.07 p.ra, November 6, 1956,
Novombor 6, 1956, R, 10,27 p.m, Novombor 6, 1956,

BMBRQKNCY
CONFIDENTIAL
Addressed to Forqlffn Office telegram No. 1012 of November 6
Uopoatod for information to Jodda Kuwait
Bagdad Doha
Tehran Dubai
P.O.M.E.F, Muscat
Washington
Bahrain Oil,
The Bahrain Potroloura Company have been told by the Arabian
American Oil Company that by order of King Baud the flow of
Saudi oil by pipeline to Bahrain is boing stopped at 2200 hours
G.M.T, tonight. This is apparently an extension of the
announced refusal to supply British or French ships. The flow
from Saudi Arabia is at the rate of about 200,000 barrels a
day, Bahrain crude production is only about 50,000 barrels a
day. The Bahrain Petroleum Company calculates that the stoppage
of Saudi supplies will mean reduction of Bahrain labour force
from over 7,000 to a few hundred,
2. I am investigating with the Bahrain Petroleum Company to
what oxtent they can use crude imported by tanker to replace,
Saudi crude. At the most this would presumably amount to about
|
100,000 barrels a day (since pipes from the refinery to tankers
would have to be taking oil both ways instead of only one way).
l But it would be much bettor than nothing. Could I please be
informed whether orude oould be supplied for this purpose from
Kuwait, Basra or Abadan and how soon tankers could bo diverted
hero. It is possible that Caltox Nov/ York office may need
pizsuasion to work in this way for fear of offending the Saudis,
3. The suggestion will bo ppt to the Huler on November 7 that
ho might communicate urgently on the subject to King Saud or
Bin Jiluwl,

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