HC Deb 05 December 1949 vol 470 cc1511-3
22. Major Tufton Beamish

asked the Minister of Fuel and Power what discussions have taken place with the United States Government regarding Middle East oil; and on what date His Majesty's Government agreed that it was in British interests to increase the possible outflow of crude oil on the Mediterranean coast from four million tons in 1948 to at least 70 million tons by 1955 at the latest.

Mr. Gaitskell

Middle East oil has not, as such, been the subject of discussions with the United States Government, though matters of mutual interest to the two Governments regarding oil supplies are frequently under discussion.

As regards the second part of the Question, I assume the hon. and gallant Member has in mind the plans of various oil companies producing crude oil in Iraq, Persia, Kuwait and Saudi Arabia for laying pipelines to the mediterranean coast. The decision to construct these pipelines rests with the commercial interests concerned; in one case the sponsoring companies are entirely American controlled and in the other cases foreign as well as British companies are involved. The question therefore of His Majesty's Government's agreement to the increase mentioned, in the Question has not arisen.

Major Beamish

Does the Minister agree that the whole European Recovery Programme is dependent on British and American oil policy in the Middle East, and how can he say that this is a matter which only concerns commercial interests? Surely it is a matter which concerns the Government?

Mr. Gaitskell

Obviously, the British Government have a great interest in the development of oil in the Middle East, but specific projects for laying pipelines are matters for the companies themselves.

39. Major Beamish

asked the Prime Minister which Minister is responsible for high policy decisions regarding the extraction, transport and refining of crude oil in the Middle East and for the co-ordination of this work with British strategic, economic and political interests at home and abroad.

The Prime Minister (Mr. Attlee)

It is not a function or responsibility of any of His Majesty's Ministers to reach decisions about the extraction, transport or refining of crude oil in foreign countries, any more than in the case of other commercial activities of British subjects in foreign countries. The strategic, economic and political interests of His Majesty's Government in the oil produced in Middle East countries is considered by the various Ministers concerned who consult together as necessary.

Major Beamish

Is the right hon. Gentleman aware that it is hard to resist the impression that far too little attention is being paid to the question at Government levels, and furthermore, that there has been a serious lack of co-ordination between the Government Departments? Will he assure the House that he will look most carefully into this?

The Prime Minister

Yes, Sir. I hope the hon. and gallant Gentleman will try hard to resist these false impressions.

Mr. Mikardo

Would not the desire of the Treasury to save dollars and the Minister of Fuel and Power to get oil from the Mediterranean ports be furthered if the Foreign Secretary did not subsidise Arab Governments to prevent the flow of Arab oil to Mediterranean ports?

The Prime Minister

My right hon. Friend does not do anything of the sort.