'File 10/37 Bahrain Petroleum Company - Dollars' [‎15r] (31/44)

MEMORANDUM.
Imports into U.K.
Settlement for imports of oil Into the U .K. by Br:'
idiaries of i-.merican companies 5 sucV; ps t^e An^lo Americ
Ltd. is m^de in dollars or in sterling to an American Account
1
I
oil is imported from a dollar source.
"Resident" Account of U. -.. 01
Settlement for imports of oil Into the Scheduled Territories
(other than the United Kingdom) by American Compahi s is centralised
in London. Payment from the importing territory is made in sterling
to special "resident" accounts kept with London bankers by the prin
cipal U. 5. Oil Comusnies. These payments are accompanied \y de
tails of the origin of the oil and of the currencies in which freight
and insurance were paid. On the basis of this info rotation, the *
Bank of England approve the retamnsfer of the funds to American Ac-
aount (i.e. U.S. dollars) if the oil has beVn imported from dollar
sources. If the oil has been imported from the Scheduled Terri
tories, the funds remain on the "resident" accounts and pre utilised
to pay for t^e oil or for t v e cost of its production.
Sales by U.S. Companies in the Scheduled Territories a ^e
made to their subsidiaries or branches and the United Kingdom r 'on=
trol, under tresent practice, are prepared to urovide r.S. dollars
for the urofits resulting from these transactions.
K i) v.' i t. Oil Con ^a ny .
j-he Company's output of oil is purchased at an a reed price in
equal shares by t^e two shareholders.
Gulf pay Kuwait Oil Company as follows:
(a) If the oil is resold outside the Scheduled Territories -
in American sterling or U.S.. Dollars.
•
(b) If the oil is resold in the Scheduled Territories or to
Shell under their specir I arrangements with 'iulf - in
sterling to t^e debit of a special "resident" account
maintained by Gu: f.. Proceeds of the sale of such oil
by Gulf are credited to the same account ard any balance
representing profdts on sterling sales is available for
remittance to the United States of America.
in sterling, the United Kingdom would lose the remittances from
Gulf, U.S .A. , coverin? the £o.b cost of the .oil ard in addition would
incur a dollar liability for tie profit of such sales.
Irao p etrol eum Cornoany .
1. The Near > ^st Development Corporation which is owned jointLy
by Standard New Jersey and Socony Vacuum, holds a ' shar-e in Iraq
Petroleum Company. Near T last Development Company 1 s share of the
1.P.C. crude oil is purchased by New. Jersey and Socony at an agreed
price. Payment is made "to I.P.C, in sterling from the American com- '
panies 1 '"resident" accounts (or if the balance is sufficient from
their American Accounts).
2. A portion of the crude oil is refined t'or tMe American companies
at Haifa by Consolidated Refineries Limited (owned by-Anglo-Iranian
and Shell) whose costs are paid from the "resident" sterling accounts
of t^e American companies who seil the oil as follow®:-
(a)