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'D.158. 86/1 - xi KUWAIT OIL' [‎168r] (348/424)

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The record is made up of 1 file (209 folios). It was created in 3 May 1937-30 Sep 1941. It was written in English. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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P.Z.1174/40
K.01956/40
SFCIET .
Dear Peel,
i'ilitary Branch,
Admiralty, S.?/.l #
23rd February, 1940.
In r ©Ply to your letter of the 26th January,
ivo» I .172/40, concerning the suggested acquisition by the
Kuwait Oil Company of a concession covering an area lying
outside xvuwait territorial waters, I write to say that our
main reason for suggesting that consideration of the matter
should be postponed until after the war was that the limits
of the concession suggested by the Oil Company raised difficult
and awkward questions regarding the boundaries between Kuwait
end Iraq. The position of the frontier was the subject of
consideration recently in connection with a suggested Iraqi
port in the Khor Abdullah (see Foreign Office letter £.5116/ ,
58/92 of the 5th August) and it is clear that the whole
question even of the land frontier is extremely obscure. To
fix a boundary running out to sea within which" oil concessions
can be granted by Kuwait is even more difficult, and to attempt
to do so may well give rise to trouble with Iraq, to say
nothing of possible Iranian reactions, even if no question with
Saudi-Arabia arises as regards the South-eastern boundary.
Apart from any views held "by the Oil Company, we should find it
very difficult in present circLimstances to give adequate
consideration to the problem* and we should imagine that the same
applies to the Foreign Office# who ai^e still more concerned in
that they have to take into account the effect of any action
on our relations with Kuwait's nei^ibours.
It will* also, we think be very difficult for the Oil
Company, under war conditions* to take up actively the examination
and development of an additional area, and we feel that* from
their point of view* it is quite reasonable to ask for a postpone
ment.
We obviously, however* cannot push these objections too far*
and if both you and the Foreign Office are agreed that it is
necessar * for political reasons, to go on with the matter now,
we can only suggest that the boundaries of the concession should
be defined in such general terms as not to raise any vexed
questions of the extent of the Sheikh's jurisdiction- ^/hat we
have in mind is that instead of showing the seaward boundaries on
a chart* we should define them in some such general way as
"bounded on the 3outhr-East by a straight line drawn from th® point
at which the territorial waters of Kov /eit and the neutra~ zone
meet* in a direction at right angles to the coast or the general
trend of the coast* if this is thought preferable; and on the
North tiast by a straight line drawn from the point xartaesu to
seaward at which the territorial waters of Kuwait and Iraq meet,
in a direction following the trend of the boundary between
Kuwaiti and Iraqi waters to the point oi intersection wich uhe
first line" • This is, of course* only a rough idea and we should
have to examine the exact terms more closely oofore .g i^na. 1/
decided upon them* As we stated in our letter ohe ■ j -
Januarv, we understand that the Company will be quite williiig^to
agree to some working arrangement* under which they would comine
their operations to an area v/ith regard to which a dispute with
either Saudi/or Iraq would not be likely to arise-
Arabia _ .
We are not sure whether, in uhe circiir :iS ucui^es, iu
necessary to define the extent of Kuwait territorial waters, but
our views are that the configuration of Koweit Bay would Justxi,
its he?ng regarded as a territorial inlet with a closing line
from Ras al Ardh to the South-west extreme corner of Falakah
Island, a distance of ahout 9i miles, provided that there xs
Ssq*, M• C* a
\

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Content

The file primarily focuses on the progress being made by the Kuwait Oil Company (KOC) in drilling for oil in Kuwait, including establishing drills at new sites and the discovery of oil at the Burgan site in February 1938. Later correspondence relates to various topics, as follows: the work and tests required on the oil before announcements relating to the discovery of oil in commercial quantities can be made; discussions with the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. over the difference between 'commercial quantities' of oil and 'commercial conditions' for oil, the latter requiring the company to discuss the establishment of a refinery with the British Government; the decision by the KOC to cease their activities in Kuwait, other than drilling for water, owing to the outbreak of war, along with their actions in safeguarding the wells against potential enemy action; the negotiations with the Shaikh of Kuwait regarding the payment of royalties for the discovery of oil and advances on those royalties. The primary correspondents are the Kuwait Oil Company; Shaikh of Kuwait (Shaikh Aḥmad al-Jābir Āl Ṣabāḥ); the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Kuwait (Gerald Simpson de Gaury, Andrew Charles Stewart); 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. at Bushire (Trenchard Craven Fowle, Charles Geoffrey Prior); the Secretary of State for India (Lawrence Dundas, the 2nd Marquess of Zetland) and India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. staff (J P Gibson, Alexander Symon, Roland Tennyson Peel)

Also discussed in the file is the question of a concession for an area outside of the territorial waters of Kuwait and numerous correspondence between the Kuwait Oil Company, India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. , Admiralty (Clifford George Jarrett) and Petroleum Department (Frederick Charles Starling) that debate what the jurisdictions might be in such an area, the exact nature of the territorial waters surrounding Kuwait, and potential boundary and frontier issues that might arise from such a concesssion. The correspondence is cut short owing to the outbreak of World War II as the various departments no longer have the time to discuss such matters and an agreement is reached with the Company and the Shaikh of Kuwait to suspend the matter until the war is over.

Other matters discussed in the volume include:

Extent and format
1 file (209 folios)
Arrangement

The correspondence in the volume has been arranged chronologically based on the date of its receipt at the Bushire Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. .

Folios 191-204 contain file notes relating to the items in the volume. The notes include details of correspondents and dates of receipt and also include notes written for the information of the Secretary to 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 regards to the responses and instructions required by 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. to the correspondence in question. Also included with the notes are pencil numbers, written in the margins, which refer to the pencil foliation numbers and enable the notes to be used as an index.

A topic based index is located on folio 1A .

Physical characteristics

Foliation: The foliation has been written in pencil and can be found in the top right hand corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. The sequence begins with the first item of correspondence and ends on the inside back cover.

Foliations anomalies: 1, 1A and 1B. Foliation errors: 173 and 176 have been omitted.

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English in Latin script
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'D.158. 86/1 - xi KUWAIT OIL' [‎168r] (348/424), British Library: India Office Records and Private Papers, IOR/R/15/1/647, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023588281.0x000095> [accessed 12 May 2024]

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