"ملف 10/14 III منطقة غير مخصصة بالبحرين" [و‎‎٨‎٨] (٦٣٦/١٨٤)

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2.
subject to any deduction resulting from the arrangement
under which gas produced in the refining process and used in
the furnaces is converted "by an agreed formula into an
equivalent amount of oil fuel and then deducted from the
royalty paying total of crude oil as "oil required for the
customary operations of the Company's installations".
(iii) It is considered that provisions corresponding
to Articles XII, mil, XIX and XXII of the 1934 lease should
a PPly also to the Lnallotted Area. May presume that this
will at any rate he effected in the comprehensive concession
which I think the Company intend subsequently to negotiate
to cover all their rights in the Sheikh's territory?
(iv) It is considered desirable to include in the
concession an article providing against the pollution of
coastal waters by oil etc. I believe that this was mentioned
to you orally last May or June and that you thought there
would be no difficulty over it. m \
/' \ '
3. To prevent any confusion I enclose a copy of the draft
concession agreement as received from you'last June and
containing, in words underlined, the suggestions made In the
preceding paragraph. ? „«y
V. .1 • i
4. I also enclose a drafts as amended in The light of
discussion with you last June, of the political agreement
between tne Company and His Majesty's Government. You will
find that we have gone far to meet your suggestions, and I
hope that you will be able to recommend the present draft
for your Company's approval. The only explanation I think I
need make is with reference to the pre-emption provisions of
the former draft. We should have greatly preferred to
xetain them, since they are in accordance with accepted
practice elsewhere in the Arab States of the Gulf as well as
in India, I understand, however, that you are unable
to/