"ملف 10/1 (مجلد V) الزيوت والمعادن. الامتياز النفطي بالبحرين." [و‎‎٥‎٩] (٥٩٢/١٢٩)

(S)
5.
additional financial Durden over a longer period.
10. After discussion it was agreed that the aznendment
might at any rate he put to the Company ana their reaction
awaited.
Articles III ana IX .
Petroleum Department "proposal .
11. "It shoula he noted that the annual dead rent payable
hy the Company remains at Hs. 10,000 per annum ior five years,
or until the Company declares that oil has heen found in
conmercially exploitable quantities, after which the dead
rent becomes Rs.30,000. In view of the extensions which
have "been granted to the Company and the fact that oil has
already heen proved m two wells, it is perhaps worth
consiaering whether they could not he asked, in return for
the further extension of the prospecting licence which they
are now demanding, to make an annual payment of Rs.30,000
at an earlier date than that provided in the form of lease.
as at present provided the Company need not make trie
declaration until five years from the date of the mining
lease."
12. Considerable discussion took place as to the
aesiraDility of suggesting to the Company the moaification
proposed. Lr. Starling saia that since putting forward this
suggestion he had given further consideration to the matter.
Under suo-paragraph 2 of Article IX of the mining lease it
was open to the shaikh, on the advice of the Political
^usiaent, to take the Company to arbitration over the
■-iUesuion oi commercial exploitation, and this action might
00 J u sti±iea after the mining lease had been in force for a
^oiupdralively short period. It was not of course desirable
to throw any doubt on the rights of the Shaikh in this
connection. .»ith the object of avoiding such a dispute it
mi glit/