CONFIDENTIAL Enter GRS 385 CONFI DENTI AL FM PARI S 061741Z FEB 81 TO IMMEDIATE FCO TELEGRAM NUMBER 86 OF 6 FEBRUARY 1981 INFO ROUTINE ABU DHABI VISIT OF VAE OIL MINISTER TO PARIS 3 - 6 FEBRUARY 1. DURING HIS STAY IN PARIS, VAE OIL MINISTER, MANAH AL OTELBA, CALLED ON PRESI DENT GI SCARD, ON M, FRANCOIS - PONCET (FORET GN MINI STER), AND ON M. GI RAUD (MINISTER OF INDUSTRY). FRENCH NEWSPAPERS, REPORTI NG BRI EFLY ON THE PRESS CONFERENCE GIVEN BY O TEJ BA, EMPHASI SED TWO POINTS: A) THE UAE WOULD BE PREPARED TO SUPPLY FRANCE WITH AS MUCH EXTRA OIL AS MIGHT BE REQUI RED, OVER AND ABO VE CURRENT DELIVERI ES OF 150,BARRELS PER DAY. WHEN ASKED DURING A TELEVI SION INTERVIEW AT WHAT PRI CE EXTRA OIL WOULD BE SUPPLIED, OTEI BA REPLIED 'AT THE MARKET PRICE'. B) OTEĪBA ĪS QUO TED AS SAYING "IT WOULD NOT BE WISE TO INTRODUCE NEW PRICE RISES, WHICH IN ANY CASE ARE NOT JUSTIFIED BY THE INTERNATIONAL MARKET. MY COUNTRY WILL TRY TO PERSUADE OTHER OPEC MEMBERS TO ADOPT A SIMILAR ATTI TUDE". THE MINISTER IS ALSO QUOTED AS DESCRIBING THE OIL MARKET AS'IN BALANCE! THOUGH, ACCORDING TO AGENCE FRANCE PRESSE, THE FRENCH ADMINISTRATION CONSI DER THIS ASSESSMENT OTO BE SOMEWHAT OPTIMISTIC. 2. INFORMATION PROVIDED BY THE ELYSEE, THE QUAI D'ORSAY AND M. GI RAUD'S CABINET SUGGESTS THAT O TEI BA'S VISIT WAS PRIMARILY A PRIVATE ONE, BUT THAT HE HAD ASKED FOR COURTESY CALLS ON PRESI DENT GISCARD AND FRENCH MINI STERS, OFFICIALS STRESSED THE EXCELLENT RELATION THAT FRANCE ENJOYED WITH THE VAE, AS ONE OF THE MODERATE MEMBERS OF OPEC. O TEIBA'S OFFER TO PROVI DE ADDI TIONAL OIL SUPPLIES IN THE EVENT THAT FRANCE HAD A SHORT - FALL (SEE (A) ABO VE) AMOUNTED TO THE EXTENSION OF THE UNDERTAKING GIVEN TO PRESI DENT GI SCARD DURING THE LATTER'S STOPOVER IN THE GULF ON 14 OCTOBER 1980, TO PROVIDE AN EXTRA 50,øbø BD (PARIS TEL NO 967). O TEI BA HAD TOLD M. GI RAUD THAT UAE OIL PRODUCTION WOULD BE HELD AT THE PRESENT LEVEL FOR THE NEXT YEAR OR TWO, BUT THEREAFTER WAS LIKELY TO SHOW SOME INCREASE, PARTICULARLY IN VIEW OF THE INCREASED ACTI VI TY BEING UNDERTAKEN BY CFP IN THE EMIRATES. ON OIL PRICES GENERALLY, OTEIBA HAD TAKEN THE LINE IN (B) ABOVE, ADDING THAT HE EXPECTED THE MARKET TO BECOME PROGRESSI VELY EASI ER IN THE COURSE OF THIS YEAR, AND PREMI A TO DISAPPEAR. CONFIDENTIAL
