'File 61/11 VII (D 122) Hejaz-Nejd Miscellaneous' [‎84v] (181/454)

2
mv i 0 Kvia fmm Birk north-eastward to the village of Raghdan, Ghamid;
thenceT north-westward to Dirth Samuda; thence north to Ashira; thenc* to
V; 6 ' /. ' , .-v,.,,,,,!,... thence to Maran and Iqba, waters on the western border
vitW ? Oi s^abV thence ill a straight line to Mahd-ndh-Dhahah (the " Cot of
IK a an estiiaSd distance of about 20 kilom, east of Jureysiya; thence
^ i ^traiffht line north -westward to Hanakiya; tnence in a straight line to the
station of Hadiya on the Hejaz Railway, leaving Khaibar outside the area; thence
north -westward in a straight line to the intersection of meridian 38 degrees east
and parallel 29 degrees 35 minutes north. Specified areas round Mecca and
Medina ' to tegin within three months and to be pursued, saving force
maieure Equipment to be ordered within thirty days. The Syndicate to
designate bv the end of one complete year the places which it wishes to prospect
further The Syndicate to designate by the end of two years places to be leased
for fifty-eight years, for effective mining operations, to companies formed by it
01 I ^No'rait payable during the first year. Four shillings sterling per feddan
to be payable in advance for the second year in respect of areas selected for further I
prospecting Annual rent of £1 per feddan to be paid in respect of areas finally
chosen for mining operations. Five per cent, of the gross value of minerals
extracted to be paid during the search less the rent of 4s. per feddan, the Govern-
ment receiving whichever amount is the greater. Payments to be made m any
currency at current rate of exchange into a bank designated by the Government,
The Syndicate to notify the Government of any transfer of rights to any other
company, but the Government shall not refuse sanction unreasonably^
5. Enumerates various undertakings by the Government, including exemp
tion of the Syndicate and its transferees from all taxes, &c., subject to payment
of 10 per cent, on all materials imported. Such materials not to be sold in the
country unless the Syndicate has made this up to the ordinary customs duty.
The Government promises all facilities for camps, houses, &c., and means of
communication, but the use of aeroplanes and wireless is to be the subject of a
special agreement. The Government to have the use of all railways,^ roads and
ports created by the Syndicate, subject to not damaging the Syndicate's interests,
This also shall be the subject of a special agreement. This article deals with a
great many other details. i
6. Enumerates various undertakings by the Syndicate. Employees shall
be subject to local law. Saudi labour to be employed where suitable. Engagement
of foreigners for work which cannot be done by Saudi subjects to be subject to
the sanction of the Government, which may be assumed if no answer is returned
within a month of notification. Several other matters are provided for in this
article, the most important being that, when final leases for areas selected for
effective mining operations are granted, the Syndicate shall form companies to
work them and shall give the Government 15 per cent, of the shares of such
companies, fully paid up. Ten per cent, of the shares are to be reserved for
subscription by Saudi subjects within thirty days of notice being given to the
Government. The companies shall pay to the Government half-yearly 5 per cent,
of the gross value of the output, but the rent previously payable shall lapse from
the date of the leases.
j. Provides for cancellation of the agreement by one side or the other in
specified circumstances and defines the effects of such cancellation.
8. Miscellaneous provisions, mostly of minor interest but including provision
for arbitration in case of dispute. Each party to name one arbitrator, with a
third arbitrator to be named by the two arbitrators or, failing agreement, by the
parties, or, failing agreement between the parties, by the president of the
Permanent Court of International Justice. This article also provides for
ratification of the agreement.