THATCHER DEFENDS UK OIL POLICY IN SAUDI INTERVIEW
British Prime Minister Margaret Thatcher
denied in an interview published in Saudi Arabia today that her
government's oil policy contributed to weakness in world oil
prices.
    She said the government was determined not to intervene to
influence production decisions by oil companies operating in
the North Sea.
    "We believe these must be a matter for the commercial
judgment of the oil companies," she told the Arabic language
daily al-Sharq al-Awsat in an interview coinciding with a visit
to London by King Fahd of Saudi Arabia.
    Thatcher said this policy had not contributed to the fall
in oil prices as North Sea production was now about the same as
in 1984 when prices were close to 30 dlrs a barrel.
    British production was on a plateau and was unlikely to
increase in the future, she said.
    "We naturally share the concern of Saudi Arabia and other
OPEC members about the harmful effects of oil market volatility
for both producer and consumer countries," Thatcher said.
    "On our part, we are careful to avoid any actions which
might add to such volatility."
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