"مذكرة عن الامتيازات النفطية في المشيخات العربية" [و‎‎٥] (١٨/٩)

is an independent state and in fact already has a Treaty with
the United States, although it is probable that the Sultan
himself will not welcome the opening of direct relations with
any other foreign power than ourselves^
15, As regards the immediate question of the development of
oil in the Sheikhdoms, it is, of course, to the Sheikhs'
immediate interests that this should proceed as fast as possible
in view of the royalties which they will obtain. Hitherto the
British Oil Companies have lagged somewhat behind the Bahrein
Oil Company (and C.A.S.O.C. in Saudi-Arabia) in the matter of
development. Insofar as they have financial interests in the
British Companies (viz, the Kuwait Oil Company and Petroleum
Concessions Ltd,), it is also to the interest of the American
shareholders concerned that development should be speeded up«
16. If in connection with any discussions with the United
States the question were to arise of requiring the Sheikhs to
make adjustments in their existing agreements with H,M,G. or the
oil companies, or to enter into now arrangements in the interests
of Anglo -aimer i can policy (for example the U,S. have already put
forward a suggestion of piping Kc»veit oil across Arabia to a
Mediterranean port) it may be said that, while we could in the
last resort no doubt induce the Sheikhs to f^ll into line, this
would probably not be without detriment to our general relations
with them, and we should be reluctant to put pressure on them
unless it could be shown that they themselves would stand to
benefit from the measures proposed.
External Department,
India Office
March, 1944.