File 10/5 II Hasa oil: CASOC's activities in Hasa; development of Ras Tannura; Political Agent's visit to Hasa [‎25r] (62/656)

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future payments to the new bank. It is agreed that Government will
designate such Bank in Saudi Arabia, or in the United States of
America, or in England, dr in Holland, but that no bank in Saudi
Arabia will be so designated unless such bank has a correspondent
in the United States o£ America, England or Holland through which
Bank transfers of money to Saudi Arabia may be made . Once the
Company has made the proper payment to the Government or has
deposited the propersum to such correspondent for transfer to a
bank in Saudi Arabia, the Company shall be free of all further
responsibility in connection with payment.
It is agreed however that the first payment of thirty five
thousand pounds gold, or its wquivaient (comprising the first
payment and the first annual rental) shall be made, within
fifteen days after the see effective date of this agreement, to a
correspondent in Mew York or in London, of Netherlands Trading
Society (Netherlandsche Handal- Mastschappij) at Jedda, Saudi
Arabia, to be transmitted without delay, and at the expense of
the Company, to the said society and to be delivered to the Govern
ment upon obtaining a proper receipt from the Government for
such payment. If this first payment is not made in gold, it
will be made in pounds sterling at the current rate of exchange
at the time the Company makes the payment to such correspondent.
Article 17 .
As soon as practicable after the discovery of oil in
commercial quantities, the Company shall select some point
within Saudi Arabia for the erection of a plant for manufactur
ing sufficient gasoline and kerosene to meet the ordinary re
quirements of the Government, providing of course that the
character of the crude oil found will permit of the manufacture
of such products on a commercial basis by the use of oil
developed is sufficient for the purpose, it is understood
that the ordinary requirements of the Government shall not
include resale inside or outside of the country. Upon the
completion of the necessary preliminary arrangements, and as
soon as the Company has obtained the Government's consent to
the proposed location, the Company shall proceed with the
erection of such plant. During each year following the date
of coupletion of this plant, the company shall offer free to the
Government, in bulk, two hu^red thousand American gallons of
gasoline and one hundred thousand gallons of kerosene, it being
understood that the facilities provided by the Government for
accepting these deliveries shall not impede or endanger the
Company's operations.
Article 18 .
^he Company, at its own expense, will employ the necessary
number of guard s and guides to protect its representatives, its
camps and installations. The Government promise to co-operate
fully in supplying the best soldiers and men available for this
responsibility, and in furnishing every reasonable protection,
at rates not exceeding those customarily paid by the Government
or others for similar services, it being understood that the
expense for such services shall be paid by the Company through
the Government.
Article 19 .
In return for the obligations assumed by the Company under
this contract, and for the payments required from the Company
hereunder, the Company and enterprise shall be exemot from all
direct and indirect taxes, imposts, charges, fees and duties
(including