Gulf News Report Published: December 16, 2007, 23:52
A daily pick of news events that happened on this day in history from the pages of Gulf News dated December 17, 1978.
Rail project to link Gulf
A Rail network linking all the Gulf States to the rest of the Arabian Penninsula came one step nearer with the announcement that the UAE and Kuwait are to initiate a study into the project.
The scheme, which has been discussed for several years, is seen by both states as a vital element in efforts to achieve greater unity among the various Gulf Arab states. Although no timetable for the project has been announced it is thought a decision could be reached quite rapidly.
Martial law in shocked Taiwan
Strict Martial law was clamped on Taiwan after the shock announcement that the United States had severed diplomatic relations with Taipei to open full ties with Peking.
After an emergency cabinet session, President Chiang Ching-Kuo angrily denounced the American move as a betrayal of its treaty commitments and said the US "cannot be expected to have the confidence of any free nations in the future". Within hours of the announcement in Washington and Peking, there was anger and dismay on the streets.
Tehran reopens for business...
Tehran wracked by violence and mass demonstrations against the Shah, took on a semblance of normal life with banks, shops and offices open again for business.
Diplomatic sources said oil production had risen slightly, to about 1.6 million barrels a day, following a return to work at two oil plants.
But this was still well below Iran's normal daily output of six million barrels.
