OIL DISPUTE IN PERSIAN GULF

Press, Volume XC, Issue 27415, 30 July 1954, Page 11

OIL DISPUTE IN PERSIAN GULF

Tribunal To Decide Oasis Ownership

(Rec. 8 p.m.) BURAIMI, July 28. Britain and Saudi Arabia have agreed in principle on the terms on which a frontier dispute over the oil rich Buraimi oasis on the Persian Gulf shall be put to arbitration. The Foreign Secretray (Mr Eden) announced the agreement in the House of Commons today. The oasis is claimed by Saudi Arabia, but Britain contends it belongs partly to the Sultan of Muscat and Oman, an ally of Britain, and partly to the Britishprotected Sheik of Abu Dhabi. ‘ Mr Eden said the tribunal of arbitration will consist of five members. One will be nominated by Britain acting on behalf of the Sultan of Muscat and the ruler of Abu Dhabi and one by the Saudi Arabian Government. These two would then choose three neutrals.

The tribunal would be asked to determine the common frontier between Saudi Arabia and Abu Dhabi and sovereignty over the Buraimi oasis. The Saudi Arabian official and his party would be withdrawn to Saudi Arabia. Britain, on her side, would withdraw the post she had put up in the oasis. Each side would then contribute 15 men to a police group which would be stationed in the oasis to maintain law and order during the period of arbitration. “As far as the oil dispute is concerned,” said Mr Eden, “the disputed area is to be separated into two parts, separated by a neutral zone. • “In the north our companies will continue their operations and in the southern part the Arabian American Oil Company will be free to prospect. This will be without prejudice to the agreements of the parties at arbitration.

“These proceedings will take time, but I am sure the House will share my satisfaction that it is now possible to go forward to a solution to this long dispute and a full restoration of our traditional friendly relations with Saudi Arabia.”.