'File 8/15 Arab Series - 1933-1939' [‎66r] (131/434)

57
(78)
f
(Received on 9th September 1934, With Political Secretary's letter No. 34,
dated the 23rd August 1934.)
Enclosures in Foreign Office covering letter, dated 14th August 1934.
Letter from II. M.’s Minister, Jedda, to the Foreign Office. No. 204
(1951/204/19), dated the 2nd July 1934.
ou are aware that at various times during the past three years, atten
tion has \ cen directed to the possibility of gold being discovered ’ in the
He]az in commercially exploitable quantities. Interest in the sub ect has
been stimulated pnm ipally by the activities of Mr. K. jv Twin lu ll, an
Luitod Males citizen, who has made several stays in the country, at first
as an expert employed by the Saudi Government for various surveys etc.,
and later as a private person with commercial interests. In February of
ast ;yeai he was closely associated with Mr. Hamilton, the representative
sent here bv the Standard Oil Company of California to negotiate the Hasa
Oil concession, and it was understood at that time that he had interested
one or more American concerns, whom he would himself represent, in other
mining enterprises, and more particularly gold mining see inter alia para
graph 15 (c) of the Jedda Report for February 1933 (F. No. 31.-N/33).
His earlier explorations had disclosed the existence of gold, though not
necessarily in important quantities, in various places, notably the North-
Western Hejaz, and two districts not far from Taif and Medina respect-
ive y. Some or all of these places are known historically as sources of ^old
in ancient times. ' 3
2. For some time after February 1933 little more was heard of gold
Nothing appears to have come of Mr. Twitchell’s efforts to interest the
American concerns more actively. He pursued his own activities, however,
and the continued interest of the Saudi Government in the subject was
demonstrated by the inquiry regarding gold mining 'legislation in the
British Empire, which I reported in my despatch No. 372 of the 20th Dec-
emb*r last.
3. Mr. Twitched has now succeeded in obtaining the backing of what
appear Xo be important interests in the United Kingdom. He returned to
Jedda cn the 27th June as representative of the recently formed “Saudi
Arabia Mining Syndicate Limited”, which, it would appear from the
press, has been registered in England as a private company with a capital
of twenty thousand pounds in one pound shares. 1 understand from Mr
I witched that the controlling interest in this new concern is that of the
Anglo-Oriental and General Investment Trust, one of whose directors is on
the board of the Syndicate but that the composition of the Syndicate as a
whoie is unusually varied. Among the other persons and firms interested
are a Mr McDermott and Messrs. Gellatly Hankey and Company Limited
whose Jedda manager confirms information from other sources regarding
their participation on a small scale.
r is Mr ‘ Twitclle ^ appears to be entirely independent
^ tandar<i pJ Company of California. He or thev or both have
indeed been at pains to mark the dissociation. It would have been natural
tor him to stay in Jedda with his only compatriot, the representative of the
Calitornia Arabian (Standard Oil Company, but he has instead taken up
1 tu J 00 *? 1 h °of- 1 believe him t0 also entirely disconnect
ed with Mr. Philby s firm, Sharqieh Limited, who have in the past had some
interest in gold and who still, I believe, control that old-established but now
inert ooocern Midian Limited. As regards his connections in London I
gather that he explored the possibility of working with the Heiaz Develop-
rnent Corporation limited. See the correspondence ending with my des
patch No. (,/ of the 13th March [Serial No. (47)], but was not impressed
813(C) F&PD r ^