Financial situation

This file relates to the financial situation Abu Dhabi and Dubai. It covers correspondence on:

• Account of the financial position of the Ruler of Abu Dhabi Sheikh Shakhbut Bin Sultan Al Nahyan (2)
• Questionable nature of an article in the Financial Times about HMG's responsibility towards Sheikh Shakhbut's financial policies and the question of how to clarify its opinion (3)
• New Ruler of Abu Dhabi Sheikh Zayed Bin Sultan Al Nahyan's disapproval of the interest rate given to him by the banks and negotiations for a higher rate (6, 8)
• Instructions by Sheikh Zayed that approximately half of the state's reserves should be paid into a new government account and his decision to include his privy purse in the state's budget (7)
• View of Deputy Political Resident in the Persian Gulf H G Balfour-Paul against Sheikh Zayed setting himself up as predominant in the Trucial States by virtue of his wealth (9)
• Success of a meeting between Sheikh Zayed, Mr Hallows of the Bank of England (BoE), Political Agent in Abu Dhabi A T Lamb and Sheikh Zayed's Director of Finance Mr Thompson, regarding Abu Dhabi's banking and investment policy. It includes documents for the establishment and operation of an investment board (11)
• Suggestion that Sheikh Rashid ought to invest his oil revenues with an international finance consortium rather than a wholly British institution, to minimise the risk for both sides (12)