'The Persian Gulf' [‎1v] (2/4)

transfer it to the Bahrein Petroleum Company, a subsidiary of the Standard Oil
Company of California, though under conditions which adequately safeguard
British political interests and on terms which are very advantageous to the Sheikh.
Oil is actually being produced. In Koweit, prior to 1934, the Anglo-Persian
Oil Company and the Gulf Oil Corporation of Pennsylvania were competitors for a
concession. ' As it is uot a necessary part of British policy in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
(save on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. and in Qatar, which are specially backward) to exclude
foreign traders and concessionaires, provided that our political interests are safe
guarded, the Sheikh of Koweit was not prevented from dealing with the Americans.
The latter presently joined forces with the Anglo-Persian Oil Company, and formed
the Koweit Oil Company, in which they are equally represented. An Agreement
satisfactorily safeguarding our interests was made between this company and
His Majesty's Government in March 1934, and a concession was granted to the
Company by the Sheikh of Koweit in December 1934. Operations are still only at
the exploratory stage. In Qatar, the Sheikh has recently granted a concession to
the Anglo-Persian Oil Company, representing the Iraq Petroleum Company, the
other partners in which (the Hoyal Dutch Shell and French and American groups)
will have to be given the option of participating in the concession ; but the British
element in the combination to which the concession passes is bound to be substantial
and may, it is hoped, be predominant. In this case also, as in that of Koweit, an
agreement was made between the Company and His Majesty's Government to
safeguard our interests during: the working of the concession. But the admission
of an oil company to work in Qatar also raised political questions of major
importance—for example, that of the protection of the Sheikh's undefined landward
frontier. The Sheikh has been promised protection (to be afforded by the Royal
Air Korce) against serious and unprovoked incursions from outside his frontier.
Difficult negotiations on this and other political questions in connection with the
grant of the concession were successfully carried through by Colonel Fowle last
May. The Sheikh's son was recognised as his heir (though this does not involve a
commitment to ensure his succession when the time comes), and the Sheikh agreed
to cede to the British authorities jurisdiction over British subjects and protected
persons other than subjects of Arab States in the Gulf.
Interest in the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. has been aroused by oil developments elsewhere
in the Gulf. Recently the Anglo-Persian Oil Company visited Abu Dhabi, and the
Sheikh of Has al Khaimah has now made a request for a visit by a geologist of that
company. We have been approached by a concession-hunter. Major F. Holmes,
regarding the possibility of a concession being granted to a British company in
respect of Abu Dhabi and Debai.
5. Relations with Saudi Arabia.—In the summer of 1934 the Saudi Government
put out feelers with a view to the establishment of closer relations with His
Majesty's Government and mutual co-ordination of policy. On 12th—14th July
1934 meetings took place between Sir A. Ryan and Ibn Sand, and later on con
versations were held iti London between Iniad Hamza, feaudi Deputy Minister for
Foreign Affairs, Sir A. Ryan, and the Foreign Office. It was thought that, while
there could be no question of an alliance with, or military commitment to, Ibn Saud,
there would be advantage in a rapprochement or entente by which outstanding
causes of dispute could be settled and the friendship between the two Powers
reaffirmed. Besides the future of the Hejaz Railway and the right of the British
Legation at Jedda to manumit slaves, the questions outstanding between His Majesty's
Government and Ibn Saud included (a) permission for British aircraft to use the
Hasa coast; (h) the treatment of goods transiting Bahrein for Ibn Sand's territory;
(c) Ibn Sand's blockade of Koweit (see below); and (d) the eastern frontier of Ibn
Sand's dominions. It was arranged that &ir A. Ryan should enter on formal
negotiations at Jedda last winter. The Bahrein transit question, however, was
remitted to a conference at Bahrein of Saudi and Bahreini representatives, and an
agreement was reached which will be ratified by the Saudi Government and His
Majesty's Government, subject to settlement of one minor point. It has now been
decided that the outstanding questions can be handled separately and need not be
combined in general negotiations. Sir A. Ryan's negotiations have been^ mainly
taken up with the question of Ibn baud's eastern frontier. Under Anglo-Turkish
Conventions of 1913 and 1914 the old Ottoman dominions were bounded by a line
(known as the Blue Line) drawn south from a point opposite the island of
Zakhuniya (i.e. approximately along meridian 50° 18' east) to the 20th parallel.