World oil authorities were this weekend reviewing the likely effect of Iraq's announced decision to nationalise the foreign-owned Iraq Petroleum Company.
GV PAN Cabinet ministers seated around table.
SV PAN President Ahmed Hassan Al Bakr enters.
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SV PAN Camera monitor to President speaking at desk. (3 shots)
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Background: World oil authorities were this weekend reviewing the likely effect of Iraq's announced decision to nationalise the foreign-owned Iraq Petroleum Company. An estimate made in London says the move is unlikely to seriously effect the world's supply of oil and petroleum.
The Iraq Petroleum Company is jointly owned by companies in Britain, the United States, France and the netherlands. On May 17th it was served with an ultimatum by the Iraqi Government which demanded a greater government share in the operations of the company, and an increase in production.
When the ultimatum expired on Thursday (1 June) a special joint meeting of the Revolutionary Command Council and the Iraqi Cabinet met in Baghdad, and later President Al Bakr appeared on Iraqi Television to announce the nationalisation of the company.
Iraq has promised to pay compensation to the Iraq Petroleum Company - but only if the company meets certain financial claims made by the government in Baghdad. An iraqi government official says the claims amount to 113 million Iraq dinars (about GBP130 million sterling) - mostly in royalties.
A statement published by the Iraq Government describes the nationalisation of the Iraq Petroleum Company as a "tremendous victory in modern Arab history against the Imperialist oil monopolies" and "a devastating blow to the most dangerous bastion of Imperialist and Zionist conspiracies - which threaten the whole Arab existence."
Syria has followed iraq's example and has nationalised assets of the Iraq Petroleum Company on its side of the border.
SYNOPSIS: A crucial joint meeting of Iraq's Revolutionary Command Council and Cabinet, at which it was decided to nationalise the foreign-owned Iraq Petroleum Company.
President Al Bakr chaired the meeting on Thursday after the company failed to answer an ultimatum from the government demanding a greater share in the operations of the company - and an increase in production. The Iraq Petroleum Company is jointly owned by companies in Britain, the United States, France and the Netherlands.
The ministers agreed to pay compensation to the firm - but only if the company meets government claims amounting, it is reported, to more than one hundred million pounds sterling. As the meeting ended, President Al Bakr went on television to tell his people of the decision to nationalise the company.
The President briefly reviewed the history of the dispute between his government and the company and spoke of the ultimatum.
He told his people that the nationalisation of the Iraq Petroleum Company would take effect immediately.