The Shah of Iran called his first Press conference for 12 years on Sunday (24 January) to warn that Gulf oil nations may have to increase their taxes on Western oil companies' revenue if the firms refuse to accept demands for price rises.
GV INT. Shah seated at Press Conference facing reporters
SV PAN from Press to Shah speaking
CU and SV Shah continues to speak (4 shots)
LV PAN round hall to Shah
Initials JMR/MR/VH/1623 JMR/MR/VH/1639
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Background: The Shah of Iran called his first Press conference for 12 years on Sunday (24 January) to warn that Gulf oil nations may have to increase their taxes on Western oil companies' revenue if the firms refuse to accept demands for price rises.
The 51-year-old Head of State reviewed the current negotiations in his capital between 15 Western oil firms and representatives of the Organisation of Petroleum Exporting Countries (OPEC). The OPEC team, consisting of Iran, Iraq and Saudi Arabia, is demanding that firms operating in their countries, and also in the Gulf sheikhdoms of Kuwait, Qatar and Abu Dhabi, pay more tax and increase the price of crude oil.
The companies have counter-proposed stabilisation of prices for all crude oil for five years, plus annual moderate price adjustments to take into account world inflation. They insist that any settlement must include the other members of OPEC -- Libya, Algeria, Indonesia and Venezuela.
The Shah accused the international companies of delaying tactics and said they would be making a terrible mistake if they thought they could get away with imposing a global agreement.
He warned them: "When one bluffs, one is caught in one's own trap -- and then one is sorry when it is too late."