"11/5 المفاوضات مع ابن سعود بخصوص حدود المملكة العربية السعودية" [و‎‎٤‎٢] (٤٣٠/٨٣)

until the Company s programre of geophysical exploration has
been completed and the more promising structures tested by
sinking a well.
As regards the intentions of the Arabian American people
are, ^relatively speaking, in the dark. Oil has been or-oved’
at Qatit, Dammam and Abqaiq lying in the coastal area of the
Arabian mainland roughly west of Bahrein' Island. How ARAfiCO
assess the possibilities elsewhere in their concession area we
do^ not know and we have no means of telling where they are
likely to concentrate their search in the next year or two"
They^have shown some exploration activity at the head of
the Bahr As Salwa which is, of course, quite close to the Qatar
concession boundary; it is natural that they should be inter
ested in the possibilities here in view of the alignment of the
structures tn ^atar and Bahrain, but we have no evidence
oO show they are c mcentrating on this area more than
others.
I feel I should mention, at this stage the possibility that
.rontier questions may be complicated by the implications of
the recent American and Mexican declaration claiming jurisdiction
over the sea bed opposite their coasts as far out as the 100
fathom line. If H.i-.G. associates itself with the princioles
of the American action the whole of the Persian Gulf will, as you
are well aware, come within the definition of M continental
as being shallower than 100 fathoms. A partioning of
the sea bed of the Persian Gulf would be the logical conclusion
and land under the waters of the Gulf of Bahrain seems likely to
be an area of prime interest to oil companies.
,J^n r0 ^ g ^ g r SUggest f, that the Possibility does exist
v u G 9 ? n( ? operations might converge in the neigh
bourhood o_ Balwa v Elsewhere the possibility of overlapping
between the operations of the two companies seems relatively
remote. V/e have good reason to believe that P.C.L. at present
do nov, contemplate exploration ordevelopment in the hinterland
? t ^ e c ? a , st ^ running from the Qatar peninsula through
-he Trucial sheikhdoms, Muscat and Oman. Their Views may
cnange as they gather knowledge, from their geophysical research,
but ’ L ° r Present at any rate, they are not interested in
any area lying inland from even the outermost Saudi Arabian
frontier discussed in the Foreign Office Memorandum of 30th
is mentioned in your letter, i.e. the approxi-
ma.e line claimed as a frontier by Ibn S a ud on the 3rd April
^i^ that any pooling or joint operation arrange
me.its on the lines contemplated in paragraph 4 of your letter J
? ppea ^ t ° * • or ABAI»:C0. There are no/ trade connec-
iions between the American components in each of these croups
or between tne two groups themselves; in fact, competition
oet.veen .he two is one of the problems of the future. Moreover,
joint arrangements of this kind have been ttfied and, in /many
cases, have come to grief from internal stresses caused by a
f ivergence between the interests of the component groups. The
Aneiloonm? 1 . etr0lel i m ^^ission contemplated by the'Anglo-
Anerican Oil Agreement might possibly help in finding a '
?- t0 a conflict of interests of this kind, but, with the
will^h^r 0 ?-ft C vJ eS ^' it ls ? pen t0 ^^bt whether the Agreement
win be ratiiied by the Americans.
the i T ~V r 2 re § oi, ? c ls nec03S arily rather speculative. From
j ^ on poin. of view we would tend to favour settlement of the
frontiers /-