Ultimatum by oil States

Press, Volume CXI, Issue 32524, 6 February 1971, Page 15

Ultimatum by oil States

(N.Z.P.A.-Reuter—Copyright) TEHERAN, February 5. The Persian Gulf oil States yesterday issued an ultimatum to international petroleum companies working in the gulf to accept their demands for more money by February 15, or face legislation enforcing higher rates, and sanctions.

The Iranian Minister of Finance (Mr Amouzegar) told reporters that the warning was contained in a still-secret resolution approved in Teheran at the end of an extraordinary two-day conference of the 10-nation Organisation of Petroleum Exporting Coun tries (0.P.E.C.). The Minister said that the deadline had been communicated to the group of 22 oil companies whose negotiations on new rates with the six

Gulf States broke down in Teheran on Tuesday. Mr Amouzegar declared: “There is no question of negotiations or resuming negotiations. It is just the acceptance of our terms, or we will go ahead with legislation.” The O.P.E.C. resolution also provided for “strong sanctions” if the companies refused to comply with any legislation; Mr Amouzegar declined to say what measures the producing countries envisaged. The Minister said that the Gulf States would refrain from taking legislative measures if the companies accepted their demands, • which would raise the tax rate on the firms; make a higher price posted for crude oil, and remove price disparities. There was no immediate comment from the companies’ negotiators who have remained in Teheran since the breakdown of the talks, but observers said that a serious confrontation with the 0.P.E.C., whose members supply 85 per cent of the crude oil requirements of Western Europe and Japan, was possible.