'File 82/1 [I] (F 52) A.P.O.C. and Oil Concessions Arab Coast' [‎83r] (165/307)

oburchill ic not disposed to concur in tiiie oroposal, but
if your Coopany remain of tlio opinion that the very aubatantial
area of 400.000 acree, aurreeted by tuis Dipartaen^ is irr r JoquatR»
Ur« Churdiill ^11 be dontent to leave thio niatter ior mibuequont
diecusBion in the liriit of the evidence your Ooiapany "'ill
then be in a noeition to produce of the prorreoe rande under the
exploration licxaco.
As rorarde the queetion of relief iron Oueto ! IXioe
on plmit and material, introduced for the purposeo of tiie
ConcesBion, while a /^reeii^ that it would be undesirable to
place auy avoidable burden upon the produotlon of oil in its
initial sta/i-ea, Ur. Ciiurclu 11 as a matter oi nrindnlf , foi ls
himself unable to reooiruaend the u leikh of Kovcit to accord
permanent iraaunity of this nature to any particular industry,
either in rornrd to import dues in respect of plant, or er^ort
dues in renpec' ol production. However, subjt ct to my
observ tioji«,-' -r iioh you raav have to offer, Ur.Churchill is
nrepared to re com; len i to liie (Sheikh that your Conipnujp oiiould
be accorded freedom from import dues for a period oi ten years,
which arranrement he ip> disposed to tliilik -yould adequately meet
your re quirements•
I nui, etc.,
(id.) ii. fouur,
for the Under becretnry of Lt tc.
amolo i- mix 07Tj ;oo ly ltd.,
Britannic house.
Great incheoter street.
LOU dc . k.c.2.
12th y r, 19 •
The Under beoretf ry o^ ut^te.
Colonial Office, L. .1.
io ben* to ackiiO*?leji ^e receipt of your letter iio .7B374A9
of the 14th Aumist in rerard to the condi tio'ns under whi oi ^e are
prepared to take up orospectiiir lioencea over certain areas of tiie
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. littoral.
/ith regard to the area that the licence should cover
in the case of Ko'?eit f we nrree that under normal conditions a
neriod of four years for exribratory work ohould suffice to enable
ur to select a reduced aron.ior the nrospectinr liamoe.
Circumst .-mces, however, :aay be sudi as to preclude us, for
reasons beyond our control, from coracletinr our work of
investirataon within this period, and on this account we ore p-lad
to learn that ^r.Giurchill ic e/^reenblc to the question of the
area beiur It it for subsequent djscussioa, Jiavjnr rerard to the
ororresr under the toleration licence.
As rer-'irds the quest on of relief from Custom Dues on
lant and jiaterial, re note tho , le r .Umrchill io unaVde
o recori iend, as a matter of principle, p< rtaonent iraaunity, he is
prepared to r* coraaend to the Sheikh tliat we should be accorded
exenaf ion for a neriod of ten ye rs. ^uch an arranrenent ie
n : ) 1 he v r r'l- to icc .
e have et c.,
(Sd.) H.i-.. MO OUi.
Laiiafdnr Director.