'File 10/2 The chief local representative - B.A.P.C.O.' [‎4r] (7/18)

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V.
1. ORIGIN OF THE POST OF CHIEF LOCAL REPRESENTATIVE.
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In the original concession granted to the Eastern
and General syndicate, no provision was made for a
British control clause and of this fact H.M.G. became
apprehensive when the Company suggested that, as British
capital was not forthcoming owing to unfavourable
geological reports, they haa negotiated with American
and ^anadian interests with a view to finding sufficient
capital to finance prospecting operations in Bahrain and
ultimate comii.ercial development, and had in fact already
transferred their rights to the ^astern Gulf Oil Company,
who in turn assigned its rights to the Standard Oil Co.
of California and this Company organised a Canadian
subsidiary to operate the concession.
During this process of transfer and re-transfer,
the option period of two years originally granted had •
expired. Under the terms of their agreement with the
^astern Gulf Oil ^ompany, the Eastern and General Syndicate
applied to His Majesty's Government for the grant of an
extension . The Colonial Office, while agreeing to
make a recommendation to the Shaikh for renewal, stipulated
that the Syndicate must remain a British Company and be
registered in Great Britian or a British Colony and that
no foreign control would be allowed. But it was argued
that as American interests would provide the capital they
a dominating share in the control
should be allowed/«3fl3b0dx3upaxbcsd3be0OQ5x and as H.M.G. found
it difficult to oppose the transfer, they eventually agreed
to withdraw this stipulation, but as an alternative they
insisted on a maximum degree of British control possible,
and put forward certain conditions. One of these condit
ions demanded that the Company should at all times maintain
in Bahrain an official to be called w Chief Local Represent-