"
)
CONFIDENTIAL
CHANCE TO EXTEND PRESENT CAPACITY. ABU DHABI COULD INCREASE ITSPRODUCTION BY NO MORE THAN 300,000 BPD (BUT HALF OF THIS HASALREADY RECENTLY ALLOWED BY KROUHA WHILST SAUDI INCREASEDPRODUCTION COULD BE NO MORE THAN 500,000 BPD).
8. THE OTHER 11 DELEGATIONS HELD OTHER DISCUSSIONS ABOUTDIFFERENTIALS AND AGREED AMONGST THEMSELVES THAT ANY REDUCTIONMADE NECESSARY BY SAUDI/UAE ACTION WOULD BE SHARED AMONGST THEM.THERE WAS ALSO A DEBATE THAT AN EXTRAORDINARY CONFERENCE SHOULDBE HELD IN JANUARY 1977.
9. ZAID'S ONLY INSTRUCTION TO MANA WAS TO DO EXACTLY THE SAMEAS SAUDI ARABIA.
10, I HAD EXPECTED DUBAI AND SHARJAH SIMPLY TO SELL CRUDE AT BEST.BUT MAHDI HAS INSTRUCTED THAT DUBAI SHALL STAY WITH ABU DHABI'S5% - A SMALL BUT WORTHWHILE CONTRIBUTION TO COUNTER-INFLATIONIF IN FACT ABU DHABI SELLS AT BELOW THE PRICE THE OTHERS TRY TOUPHOLD.
11. AS UAE HAS BECOME A MODERATE MAVERICK SEE CONSIDERATIONS INMY IF ROUTINE TELEGRAM
12. FCO PASS SAVING MUSCAT, UKDEL OECD PARIS, UKMIS GENEVA,UKMIS NEW YORK, UKREP BRUSSELS.
MCCARTHY
[REPEATED AS REQUESTED]DEPARTMENTAL DISTRIBUTION
ADDITIONAL DISTRIBUTIONEN D
OILMED
COPIES TOFRDNEWS D
MR P WRIGHTNAD
NO 10 DOWNING STREET
CONFIDENTIAL
