Gulf favoured to buy B.P.

Press, 11 October 1988, Page 26

Gulf favoured to buy B.P.

NZPA-Reuter Abu Dhabi The United Arab Emirates central bank governor said he favours the idea of Gulf States buying some of the shares in British Petroleum (B.P) which Britain is forcing Kuwait to sell. Abdul Malik al-Hammar told the “Al Bayan" Arabic language daily that the British move showed how Arab investments were vulnerable, especially when economics were linked to politics. Britain’s watchdog commission on monopolies has demanded the Kuwait Investment Office (KIO) cut its 21.6 per cent stake in the major British oil company to 9.9 per cent. The British demand has brought angry reaction from Arab investors. “The purchase by Gulf Arab States of Kuwaiti shares is a good idea, especially after reports that the United States and Japan are planning to buy,” the newspaper quoted the central banker as

saying. In Kuwait on Friday a newspaper called Britain's demand that Kuwait sell most of its stake in British Petroleum a stab in the back and said Kuwaiti-British relations would suffer. “Britain has now proved it is not a friend we can rely on or trust, and its silly decision will be dangerous for BritishKuwaiti relations and BritishGulf relations in general,” "al-Rai al-Aam” said. “Kuwait will never help those who stab it in the back and surrender their values and friendships before pressures and the seduction of interests,” the paper said. The English-language “Kuwait Times” said Kuwaitis intensely resented what it called an enormous injustice. "The plain truth is that Kuwait’s purchase of the B.P. shares was, in effect, a rescue operation by a sincere friend of Britain ... surely this is not the way to say thank you.”