File 10/5 I Saudi Arabia: Hasa Oil Concession; visit of Major Holmes to Saudi Arabia; Kuwait blockade. [‎94r] (216/496)

I . the
Com.-ny of bucxi r> ctl n In writifiis. 511 s to g ' ^
. w-i r + hem to arr&ngt-
Company sufficient time to en blc tnem
sequent payments to be mde to the ne« bank, it is agreed
thfit the Governraei.it snould nominate lor this purpose
bank: in either Sfe'udi j.Tf bin. the U.S.A. hnglsnd, or Holland,
prorided th t no bt r.k be fixed in Sa'udi /re'oia unless
it iL.s a correspondent in the U.S.;.. Sngland or holland
through whoa money ct-n be remitted^ to on- udi j-.: ubia.
In the event of the Company n Tint; a. de any^aymentto the
Government in the proper taenner or having deposited tat, sua due
due to them in any bsnk or having paid the sum to tne
corr respondent of a b»nk for transmiasion to a* 'udi arable
.nen the Coaiiany sftall berel eased from all responsibility
in res ect or sucn p yment. It h e been agreed tn t the
first p:yment agreed upon (i.e. tne preliminary loan ana
therent of tne first year) eh 11 be paid within 8 period
of 15 days from the date on wnich this agreement comes into
force to the correspondent a of the fietherlands i 'rfding '
cxety of Jedda (8*' udi Ar< bi) at Hew i'ork or London 1 or
iaaiedl: te tr nsmieaion to th *ethcrl i nde trading .ociety
mentioned atoove at the expense of the Company, and ior
handiOt; over to the Government aeeinot proper receipt. It
this first payment ie not paia in &ola it my be paid in
pounds sterling at the rate of exchange rul ing at the tm*
when the Company p. ya the said amount to the correspondent
of the b; nko
Article 16 . fter the aiscorery of oil in cOBBtroi 1
quantities within a reaeon^ble period, the Company on 11
choose t jjlace within Se'udi Arabia so as to eaUbllsh a
factory An East India Company trading post. to make e quntity of benaine and kerosene suffi
cient for the ordin ry requirements of the t/ovornmeut, yro-
vided thatWhe crude oil foam la of a turc r.deuuate
for ouch m nuf cture on a comerci.-l basis by ordinary
proce ses of refining and tht the oil produced is adequate
• •o•• adequate