CONFIDENTIAL H.M. POLITICAL AGENCY TRUCIAL STATES DUBAI. January 12, 1961. 25 JAN 1961 Please refer to your letter BA 14310/1 of December 12, 1960 about telecommunications in Abu Dhabi. 2. The agreement was reached by ordinary commercial negotiations with the Ruler. Hodge kept me informed of these negotiations about the opening up of a telegraph office. I was, however, under the impression that Cable and Wireless were not interested in Abu Dhabi and did ask Mr. Hodge to check that this was so. I am afraid that I was not aware that the G.P.0. should be kept informed of developments of this sort. 3. You should now know that I have received a further letter from Hodge informing me that the Ruler had proposed to him (sic) that the Abu Dhabi Telephone Co. be informed with an I.A.L. holding of 51% and himself or the merchants holding 19%. I enclose a copy of this. 4 02 4. I see from paragraph 148 on page 168 of the Historical Summary 1928-1953 that in 1950 when I.A.L. wished to open a telegraph office at Dubai it was held that this was in the sphere of influence of Cable and Wireless and that the concession was consequently granted by the Ruler to the latter. However before the formation of the Dubai Telephone Co. Cable and Wireless made formal waiver of their right to coperate a telephone service in and about the City of Dubai". Agency letter 1434/59 on October 14, 1959 to the Residency copy to Arabian Department refers). 5. I should now be grateful if you would let me know: (a) whether Cable and Wireless in the absence of any written agreement with the Ruler, have any rights or prior claims in Abu Dhabi. (b) If so, what their attitude is to the grant already made to I.A.L. and what their attitude towards the formation of an Abu Dhabi Telephone Co. is whether Cable and Wireless would wish to attempt to negotiate an agreement with the Ruler of Abu Dhabi in respect of the rights not already granted to I.A.L. 6. My own view is that it would be best to let sleeping dogs liem. The Ruler of Abu Dhabi is no easy man to negotiate with and, since I.A.L. evidently now have his confidence, it is probably in the general interest that they should run the complete communications system in Abu Dhabi. 7. I am copying this letter to Archie Lamb in the Residency in Bahrain and to Jack Warner at Abu Dhabi. (D. F. Hawley) W. F. Marshall, Esq., Arabian Department, Foreign Office, S.W.1.
