Joint ventures between Saudi Arabia and UK on industrialisation and oil resource development

This file concerns plans for strengthening Britain’s economic relations with Saudi Arabia through industrial development projects. It contains correspondence relating to:

• Attempts to develop a government-to-government agreement with Saudi Arabia which would demonstrate HMG’s support for British ventures while keeping its actual involvement limited
• French economic activity and oil agreements in Saudi Arabia
• Proposed feasibility studies of industrial development projects by Davy Power Gas Limited, who have been contracted by General Petroleum and Mineral Organisation (Petromin)
• The question of abandoning or pursuing negotiations on industrial development projects with Saudi Arabia
• A package of industrial projects proposed by British industrialists, including Burmah Oil Company’s proposal to construct an oil refinery and the Rio Tinto Zinc Corporation (RTZ)’s idea for a mineral complex
• The possible role of the Overseas Development Agency (ODA)’s Council for Technical Education and Training for Overseas Countries (TETOC) in providing training for industrial projects in Saudi Arabia
• Reports of joint venture deals in Saudi Arabia with Shell and Mobil
• Meetings between the Prime Minister Harold Wilson, the Foreign Secretary James Callaghan, and the US Secretary of State Henry Kissinger, covering the state of affairs in the Middle East and other matters; and touching on economic ties with Saudi Arabia, which the US is also pursuing
• Coverage in the Saudi press on the rush of Western delegations seeking business in Saudi Arabia
• The preparation of a Memorandum of Understanding spelling out HMG’s wish to strengthen economic cooperation
• Arrangements for a mission of British industrialists to Saudi Arabia
• Arrangements for the Leader of the House of Lords Lord Shepherd [Malcolm Newton Shepherd] to visit Saudi Arabia to sign the Memorandum of Understanding
• Briefings for Lord Shepherd’s visit, including background notes on the Saudi Government and its foreign policy, the Arab-Israeli conflict, and the British stance on this; biographical notes on King Faisal Bin Abdul Aziz Al Saud and various key personalities in the Saudi establishment; background notes on the Saudi oil industry and the involvement of Britain and other countries in this; and areas of opportunity for business in the country