July 7, 2006

THE CABINET CALLS ON THE WORLD COMMUNITY, TO PRACTICE THEIR ROLE AND TO MOUNT PRESSURE ON ISRAEL TO END ITS OCCUPATION OF THE PALESTINIAN TERRITORIES. THE SUPREME COUNCIL OF PETROLEUM AND MINERALS AFFAIRS APPROVES THE OIL STRATEGY OF THE KINGDOM OF SAUDI ARABIA. THE KINGDOM SEEKS A BALANCE THAT PRESERVES THE INTERESTS OF BOTH PRODUCERS AND CONSUMERS IN THE OIL MARKET. The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz chaired the Cabinet's session held at Al Salam palace in Jeddah. At the outset of the meeting, the Custodian of the Two Holy Mosques briefed the ministers on the meetings and contacts that took place last week with a number of leaders and envoys of friendly countries, citing the importance of the meeting with Iraq's Prime Minister Noori Al-Malki who voiced appreciation of the Kingdom's firm position in support of Iraq and its national integrity, security and stability. King Abdullah Ibn Abdul Aziz paid tribute to the important step taken by Al-Malki, calling for national reconciliation of Iraqis and uniting them in an equal framework that preserves rights and duties of all. King Abdullah expressed hope that this endeavour would succeed in the days ahead. In a statement following the meeting, Minister of Culture and Information Iyad Ibn Ameen Madani said the Council of Ministers then dealt with the situation in the occupied Palestinian territories, confirming that the current developments exposed the short-sighted Israeli policy which ignores negotiations with the Palestinian side and opts to transfer the territories from which the Israeli troops withdrew unilaterally to collective detention camps in which Palestinian detainees face all kinds of humiliation, starving and collective punishment, including barring them access to water, power and health supplies. Denouncing this policy, the Council said it would only lead to aggravating the situation of violence, conflict and hostility. The Cabinet called on the world community, particularly the countries enjoying close relations and alliances with Israel, to practice their role as peace-loving forces and supporters of self determination and human rights to find a solution for the Israeli-Palestinian conflict and to mount pressure on Israel to end its occupation of the Palestinian territories and people, to help pave the way for implementing the international legitimacy resolutions and the decisions of the Arab summit held in Beirut. The minister said the Cabinet then reviewed the local items on its agenda and issued the following decisions: The Cabinet approved a draft agreement between the Government of the Kingdom of Saudi Arabia and the Government of the Republic of Niger in the field of air transport services signed in Jeddah on December 4, 2005. According to the agreement, each party grants the other's national carrier the right to practice selling air transport services on its territories whether directly or through agents. No charges will be levied on the airlines of the other party higher than those imposed on the airlines assigned by that party which operates the same international services using similar craft and same services and utilities. The Cabinet decided to amend Paragraph D of Article II of the regulations of Follow-up Agents as follows: The bank warrant presented to the Ministry of Commerce and Industry to license a follow-up position will be SR10,000. The Minister of Transport or his deputy was authorized to discuss with the Lebanese side drafting an agreement between the government of the Kingdom of Saudi Arabia and the government of the Republic of Lebanon for organizing passengers and goods transport operations on land roads, sign it and then forward the final version for further authentication. The Cabinet approved the appointment of Prince Bandar Ibn Saud Ibn Mohammed Al Saud as Secretary General of the National Commission for Wild Life Protection and Development, and Abdulaziz Ibn Sulaiman Ibn Abdul Rahman Al Turki as Minister Plenipotentiary "category A" at the Ministry of Foreign Affairs. The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz, the Prime Minister and Chairman of Supreme Council of Petroleum and Minerals Affairs chaired the council's meeting at Al-Salam Palace in Jeddah. The meeting was attended by Crown Prince Sultan Ibn Abdul Aziz, Deputy Prime Minister, Minister of Defense and Aviation and Inspector General, and the Council's Deputy Chairman. Following the meeting, Dr. Mutlab Ibn Abdullah Al-Nafeesah, Minister of State, Cabinet's Member and the Council's Member and Secretary General said that the Council reviewed the situations in the world oil market. The Council noticed the high fluctuation in oil prices over the last months which is not in the interest of oil producing, consuming countries or industry. The Council expressed its satisfaction of the balance between oil supply and demand along with a rise in the world trade stocks of crude oil to unprecedented levels for several years. Hence, the Council realizes that the current increase in oil prices are due to various factors including among others non-availability of advanced refining capacity, but not due to a result of any shortage of crude oil supply. In view of the Kingdom's keenness on not harming the world economy, on taking into consideration the consumers' interest and its keenness on the producers' interest in profitable revenues of their depleting resources, the Kingdom seeks a balance that preserves the two interests. Then the Council discussed topics on its agenda and took the relevant decisions including the approval of the oil strategy of the Kingdom of Saudi Arabia. In this strategy, the Council affirmed the Kingdom's interest in the stability of the world oil market for short and long terms. This objective will be achieved through the following: First, close cooperation at all levels with oil producing, consuming countries and world industry for the stability of oil supplies, contribution to the prosperity of humanity, and continuity of the world economic growth particularly the economies of developing countries; Second, gradual increase in the Kingdom's producing capacity to keep abreast of an expected rise of world demand and of the situations of supply in various regions of the world; Third, increase in the Kingdom's refining capacity locally and abroad to meet demand for oil products and to set up refineries capable of refining heavy crude oil whose world production increases; Fourth, the work on increasing transparency in all fields of oil industry and market and on promoting integration processes of oil industry at the world level. The Council also approved re-formation of the Council's Preparatory Committee. The Custodian of the Two Holy Mosques King Abdullah Ibn Abdul Aziz has sent a cable of congratulations to U.S. President George W. Bush on the occasion of his country's independence. In his own name and on behalf of the people and government of the Kingdom of Saudi Arabia, King Abdullah wished the president continual health and happiness and his people steady progress and prosperity. I avail myself of this opportunity to express my pleasure over the flourising deep-rooted relations between our two countries and the shared confidence and we will remain dedicated to enhancing these historical relations for the benefit and interests of our two countries and peoples, the king said. Crown Prince Sultan Ibn Abdul Aziz, Deputy Prime Minister, Minister of Defense and Aviation and Inspector General, has sent a cable of congratulations to U.S. President George W. Bush on the occasion of his country's independence. In his cable, Crown Prince Sultan wished the president continual health and happiness and his people steady progress and prosperity. Crown Prince Sultan lauded the existing high level of relations between the two countries.