Saudi Arabia's Oil Minister, Sheikh Ahmed Zaki Yamani has strongly criticised proposals for a joint buying agency made up of industrial nations and aimed at cushioning the shock of further oil price rises.
GV INTERIOR Yamani (centre) seated at table. Listens to question (Hold Sound Down).
SV ZOOM INTO CU (same shot) Yamani replies to question
REPORTER: "Could you tell us what is the answer for the deployment of surplus revenues over and above what you can invest in your own country and in neighbouring Arab states?"
SHEIKH YAMANI: "I think the problem does not stand here the way you put it. Some people they think they will have...we will have a huge amount of reserves. I don't think this is a fact. I thing Saudi Arabia plus the other Arab countries plus what we can do for the other friendly countries to Saudi Arabia. All of them can absorb a large portion of the surplus which we will realise. What is left is not that big. Now if the industrialised nations are no willing to help Saudi Arabia build the infrastructure in Saudi Arabia and industrialise the country -- in this case we might have another look at the problem. We might not increase our production. We will produce exactly what we need. So we won't have a problem, you'll have a problem."
Initials ??? AE/21.53
Script is copyright Reuters Limited. All rights reserved
Background: Saudi Arabia's Oil Minister, Sheikh Ahmed Zaki Yamani has strongly criticised proposals for a joint buying agency made up of industrial nations and aimed at cushioning the shock of further oil price rises.
At a London press conference on Thursday (9 May), Sheikh Yamani warned that any action of the kind would lead to a sharp increase in oil prices and reduced production. The Saudi Arabian Oil minister had spent three days in London for talks with British government officials. Referring tersely to the plan, he warned that if he was a consumer he would not take part in it. He also said that if the industrial nations were not willing to help build up Saudi Arabia, oil production in the country might not be increased. Sheikh Yamani refused to answer questions about whether the price of oil would again be raised.
Following the press conference, he left for talks with British Foreign Secretary James Callaghan. the Saudi Arabian Minister was due to leave London on Friday (10 May).
The proposed joint buying agency plan is reportedly the idea of British Cabinet Minister Harold Lever who is currently in Washington for talks with United States officials.
A transcript of one of Sheikh Yamani's replies at the press conference follows: