358 END - 3. THIS MORNINGS ENGLISH LANGUAGE PAPERS CONTAINED THE NEWS THAT THE MEETING OF THE RULERS HAD BROKEN UP IN DISAGREEMENT AND THAT THEY ARE TO MEET AGAIN ON 1 JULY. IN THE LIGHT OF THIS THE SHAH MAY DECIDE TO WITHOLD FURTHER CRITICISM FOR THE TIME BEING. ALTHOUGH CRITICAL OF THE U.A.E., THE SHAH HAS NOT COMMITTED HIMSELF IRREVOCABLY IN PUBLIC TO OPPOSING IT AND, IN PARTICULAR, HAS NOT SAID THAT IRAN WILL NOT RECOGNISE IT. THE PRESS HAVE, HOWEVER, GONE FURTHER THAN THE DAWN INTERVIEW AND STATED THAT THE FEDERATION AS ENVISAGED CONSTITUTES A DIRECT THREAT TO IRANIAN INTERESTS AND CANNOT, THEREFORE, BE RECOGNISED BY IRAN. FO PASSBAHRAIN RES 115. JEDOA 51 RAWALPINDI 38 WASHLIGION 71 AND SAVING TO KUWAIT 43. SIR D. WRIGHT [REPETITION TO JEDDA & BAHRAIN REFERRED FOR DEPARTMENTAL DECISION,REPEATED AS REQUESTED TO OTHER POSTS 1 DEPARTMENT AL DISTRIBUTION FOX EASTERN DEPT. ARABIAN DEPT. N.E.A.D. OIL DEPT. DEFENCE DEPT. P.U.S.D. IVES DEPT. 1.A.D. CO: S.A.D.
