'File 8/15 Arab Series - 1933-1939' [‎26r] (51/434)

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matter. The Sheikh’s recollection was that Ibn Sand gave the Plasa Conces
sion proper to Major Holmes in the spring of 1923, its chief clause being that
unless Major Holmes started work within three years the concession would
lapse. Ibn Saud wrote in the summer of 1923 and sent the Sheikh a draft
joint concession in respect of the Kowiet Neutral Zone, which he wished to
give to Major Holmes’s company, the E.G.S., and asking the Sheikh to sign it.
His Majesty’s Government informed the Sheikh that he could sign the joint
concession. The concession was actually signed in April 1924, and consisted
of only four pages, and it was duly sent on to Ibn Sand. About a year after
wards Major Holmes had a disagreement with Ibn Saud, who informed
Major Holmes that the joint Neutral Zone Concession was there and then can
celled. Ever since the Sheikh of Kowiet has assumed the joint concession to
be a dead letter, that is to say, from about April 1925. The Sheikh of Koweit
has been unable to ascertain whether Ibn Saud has included the Neutral Zone
in the Hasa Concession recently granted to the Standard Oil Company of
California.
(7) Farsan Islands, now also a part of Saudi Arabia. —E.G.S. would appear
to have obtained some sort of a concession for the Farsans (and possibly the
mainland of Asir) from Hasan-al-Idrisi in 1926. It is not clear what became
of this concession, if the grant was complete, but it was superseded by a con
cession for the Farsans given by the Idrisi on the 25th September, 1926, to a
Mr. Cooper, who marketed it to the Anglo-Saxon Petroleum Company (Royal
Dutch Shell Group). The latter formed the Red Sea Petroleum Company to
work it. This company started operations of some importance at Zifaf Island.
The Idrisi, acting, it was thought at the time, under Italian influence, but more
probably under that of Iban Saud, made difficulties in the summer of 1927.
After abortive efforts by the company to overcome them, Ibn Saud came for
ward ostensibly in the role of honest broker Often a local commercial agent in the Gulf who regularly performed duties of intelligence gathering and political representation. between the Idrisi, now his vassal
and the company. A conference held at Wizan in December 1927 under his
auspices between the representatives of the company and the Idrisi was again
abortive. Ibn Saud eventually intimated “ a decision in the question of the
dispute which we were asked to settle between the Red Sea Petroleum Company
and the Idrisi Government ” to the effect that a new concession should be
drawn up and that in the meantime it would be undesirable to accede to a
request which the company had put forward for permission to transfer their
operations from Zifaf to Great Farsan. He suggested that the company should
send a representative to Jedda to negotiate the revised concession. On his
persisting in this attitude the company decided to withdraw from the islands
and in September 1928 they removed all material under the auspices of H.M.S.
Dahlia. It must be assumed that this terminated any rights under the Cooper
Concession. The Shell Company has recently stated that it is not interested
to reopen operations in the Farsan Islands.
(D)— Present Position.
Whatever view might possibly be held as to the legal position in regard to
past concessions, it is quite certain that Ibn Saud believes himself to be quit
of all of them and he is probably right. The position in regard to the various
areas may be summed up as follows :—
(1) Northern Hejaz. —Midian (Limited), closely associated with Sharqieh
(Limited) or some other concern, may have had rights in this area, but there
is no reason to think that they survive. No one seems to be actively interested
at present.
(2) Asir. —Ibn Saud in June 1933 intimated that he would be prepared to
consider offers for a concession from British companies. The matter was
referred by the Petroleum Department to the I.P.C. within whose sphere of in
fluence Asir fell and who were the only company with any British interests who
were likely to be prepared to consider the .matter. The I.P.C. have intimated
that they are prepared to send out geologists to make an examination if they
can secure the necessary rights without payment during the exploratory period.
(3) Hasa. —After some competition between tHe Iraq Petroleum Companv
(who sent a representative out to negotiate in 1933) and the Standard Oil
Company of California, a concession was ultimately granted to the latter. It
is understood from information obtained from the I.P.C. that the concession
was signed on the 29th May, 1933, the terms being an initial payment of £30,000
(yold) and a further deferred payment of £20,000 (gold) with a royalty at 5s.
per ton.