Document oDDjYOjGk4ErGQrQRaQjBgnbE

,,vrjiv, W*!S' CO 1. Hr. Herbert referred of the statistical pioture plus estimated production in 1943 without any additional dining ato., would be urfiolent to meat 1943 requirements and leave in U.K, and U.3. 12 nontha atock In hand or all grade a on 31.12.1943. after allowing a 10 par cant* margin for poaaibla sinkings. 2. The following table lndloutes the uvullabllltles and the agreed allooatlona for 1943,on the underatandlne thnt the dlvaralona referred to in Ramat 4629 are not leiplementad The quantities allooated are estimated to be sufflelent to provide 12 donthe' stocks In U.K. and U.3. on 31.12.43. after allowing a margin of 10 per eent. for sinkings. CiOl Stook at nine on 31.12.42. plus 1943 oroduetlon. 2,266 246 Allooatlane EiilEfi 1,231 - 1,477 3432 ! VRA2 HVL2 10,696 4.721 6,648 - 11,369 v'v-:?Av-/ mm? > .-.s.'VvV 0403 ) VSA3 ) 54,649 m3 ) 9,097 16,233 via ll3 o 13,193 Spain 5,000 8Amerlos 2,000 47,527 x OMb |19,020 VSAb KVL3XX 3,062 3,733 S.Amerlee 3,273 340 12630 3. It wes agreed tlut to the extent that the U.S. requirement oe above of 0402 oould not wholly be met. the deflolenoy would be guide up by C&Ol. Slone of the HVL gradee would bo supplied to U.S. |h U. ISr. Shephedrd oould not ujree either that no VHA qould be supplied to U.9. or thut If VR.. were eupplled it should be et a lower price than the C0 gradee. He maintained that the VRa end C40 grades were etriotly oomparuble and interohoneeable;wed Turner and Kewall's contracts Invariably stipulated that deliveries of either crude should be at the Company* s octlon. The question of the prloe differential had been raised by U.9. buyers some months ago and i:r. Shepherd had finely refused to alter his Company's policy. There was no good reaeon why U.S. buyers should buy on different terns from U.X. buyers. U.K. users expcrlcnoe no difficulties In using the VKA gradee and i:r. Shepherd did not accept the validity of U.S. tests indicating that the V.it.A. grades oould not be used equally us well ss the C&O grades for all purposes. Although Ur. Shepheard maintained ms position us set o.t li. psregraphabove, he atr:ed ae under : CM? ) quantity hipped to U.9. VM2 ) would inolude 1,000 tone V.it,A. 0*03 } VtU3 ) V.K.A. would only be whipped to U. 9. '.when failure to do eo would lose evsiluble shipping spues .. .v* he chipped 5./ % I 5. It was emphasised that the U.K. requiramcnta of th C&O grades were oelculatsd on the umlorstundingkths U.K. requirements of Canadian were met. It wa agreed that the U.K. should make up any daflolenolea of Canadian by taking mors of the C&O and thut the U.a. oontraota with Turner d Hawaii's would oover the Compuny accordingly. Turner and Hawaii's 1943 requirements of Canadian grades were pleaed at 23,000 tons. The totul^Cunadian programme is for 36,000 tons. Mr. 8hepherd asked, end the representetlvee oonflraed, that the requirements of the U.a. Branch of Turner and tlewulla would be catered for. 7. It was agreed thjt surpluses should be divided equally between U.K. and U.3. exoept that u.3. might take more CdOl against the possibility of a shortage of C&02. '*L 6. The B.E. I. representatives referredithe 7s per oent. inorease in prices reoently imposed by ?urr>' r and Hawaii's and expressed their serious ooncorh. i:r. shepherd stated that be hod agreed to furnish A.t:.D. with details of their oosts und the necessity for tho prloe increase; he insisted that the figures should be oonfldontlul to k.C.D. j 9. B.'h../. would draw up draft oontracte for 1943 puroiuieee and would submit oopies to H.D. and to Turner and Kewnll'Sj 10. The next meetin, was arranged for 10,3 u.m. on Friday 27th ;.ovenber, 1942 at 3holl Ilex house (Hoom 896). CL CL CO ) i 2 C e 23rd'i:ovcmiier. 1942. vA