'F-81 82/1-V A.P.O.C. Kuwait' [‎62r] (140/393)

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the cloak of the Eastern and General Syndicate should be
neglected, although They fully adrdt that it is essential
that the burden of choice must ultimately rest entirely
with the Sheikha My Lords therefore consider that the
instructions to thePolitical Resident should point out that it
is of the utmost importance that the Sheikh should give his
decision in favour of the Anglo-Persian Oil Company and that
the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. should neglect no legitimate step to
ensure his taking this decision provided that the ultimate
decision can be made to appear to have been entirely that of
the Sheikh himself and that no ground is given to the
American interests concerned for an accusation against His
Majesty's Government of having brought undue influence or
pressure to bear upon the Sheikh.
4. My Lords also consider it desirable to add that
should an opportunity arise to tender his advice to the
Sheikh the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. , in addition to explaining any
doubtful points in the Petroleum Department's analysis,might
well refer also to the following points: -
(i) That as nothing is yet known as to whether the
field will be a cheap or an expensive one to work
and as at present there is a considerable world
over-production of oil, there may well be a strong
inducement to limit production from the Koweit field
rather than to increase it. In these circumstances
the "bird in the hand" of the Anglo-Persian Oil
Company's offer seems to be worth considerably more
than the "two in the bush" of the Eastern and
General Syndicate's draft concession.
(ii) The wide experience of the Anglo-Persian Oil
Company in this area enables them to offer a fair
economic royalty, combined with a higher minimum
payment. The Eastern and General Syndicate, on the
other hand, being almost entirely without local
experience, offer a higher royalty and a lower
minimum