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'File 86/1 II (D 78) Kuwait Oil. Eastern and General Syndicate' [‎130r] (263/460)

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The record is made up of 1 volume (239 folios). It was created in 25 May 1931-30 Jun 1932. It was written in English and Arabic. 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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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT
( P.Z.
EASTERN (A rabia).
CONFIDENTIAL.
' P. 7.
2293
April 9, 1932.
S ection 1.
^32 !
[E 1733/121/91] No. 1.
Sir John Simon to Mr. Atherton.
I J n/ij
gj r Foreign Office, April 9, 1932.
WITH reference to your note No. 1696 of the 'i&th March regarding the
application of the Eastern and General Syndicate for an oil concession in Koweit,
which they propose, if granted, to transfer to United States interests, i have the
honour to inform you that His Majesty s Government have given caretul
consideration to the representations made by General Dawes and yourseli on this
subject, and I am now in a position to return you a reply. ou -i v #
2. Your Government will appreciate in the first place that the bneikh or
Koweit, though an independent ruler, is in special treaty relations with His
Majesty's Government and enjoys their protection. These special relations lead
him to seek their advice on important matters of policy, and place His Majesty s
Government under an obligation to watch over his interests. Many years ago
the predecessor of the present sheikh gave an undertaking that he would not giant
an oil concession in his territories without their consent.
3. In paragraph 2 of your note of the 29th March you mention that \oiir
Government are intormed tliat the sheikh is agreeable to the entr} of the
Eastern Gulf Oil Company and to the granting on behalf of that company ot an
oil concession without the inclusion of the nationality clause. As was
explained to you in a semi-official letter of the 22nd December last from my
Department, His Majesty s Government, on learning this, felt some doubt as to
the correctness of this interpretation of the sheikh s attitude, since the sheikh
had consistently expressed himself emphatically to the local British authority as
desirous of confining any oil concession to entirely British inteiests. In youf
letter of the 30th December you were good enough to transmit for my information
a copv and translation of a letter from the sheikh to Major Holmes, the repre
sentative of the Eastern and General Syndicate, on which the American interests
apparently based the information on this point given to your Government.
Majesty's Government have caused enquiry to be made of the sheikh, who replied
that he was still averse from receiving in his principality a company other than an
entirely British one and' that he did not consider himself as in any way committed
by his letter to Major Holmes to grant the Eastern and General Syndicate the
concession which they seek. It will be observed from a reference to the sheikh s
letter that its final sentence only expresses a readiness to discuss the matter
further with Major Holmes after agreement has been reached between the
syndicate and His Majesty s Government. i • i
4. When examining the necessity for the continued insistenceon the inclusion
in any oil concession in respect of Koweit of a clause confining it to British
interests, His Majesty's Government have been concerned not only with their own
interests' in the matter, but also with their duty to secure the best terms possible
for the Sheikh of Koweit, and, in particular, have had regard to the possibility
that it would be less difficult for the local British authorities to control the
activities of a purely British concern and to reconcile them with the sheikh s
interests. On a balance of all the conflicting considerations. His Majesty's
Government are, however, now prepared, for their part, not to insist in this case
that any concession must contain a clause confining it to British interests, if the
sheikh for his part is willing to grant a concession without such a clause.
5. I wish, however, to make it clear that this decision does not imply
agreement in the immediate grant of the proposed concession to the Eastern and
General Syndicate, to which'the sheikh, as stated above, considers himself in no
way committed. His Majesty's Government indeed do not consider that they
could properly advise the sheikh to give prior or preferential treatment to the
Eastern and General Syndicate, but hold it to be necessary that any application
for a concession which may be forthcoming from any quarter be examined with
[435 i—11 '—^ 1
L j I WEEKLY LRTTER
No. 21 APR 1932
FROM 8E0RETARY, POLITICAL ANf
SEGH tEPT. 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.

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Content

The volume continues on from IOR/R/15/1/638 in discussing a proposed Oil Concession for Kuwait which is negotiated by Major Frank Holmes on behalf of the Eastern and General Syndicate Limited.

The correspondence focuses on a proposed clause in the draft concession agreement, known as the 'Nationality Clause', which would prevent non-British companies from obtaining a concession in Kuwait, and which the Shaikh of Kuwait and His Majesty's Government wish to enforce, but which the Syndicate object to as they are American-owned.

Central to the correspondence is a letter from Shaikh Aḥmad al-Jābir Āl Ṣabāḥ, Shaikh of Kuwait, to Major Frank Holmes in which the Shaikh implies that he would be willing to forego the Nationality Clause if the British Government are willing for it to be omitted and thus transfers the onus of responsibility for the clause to His Majesty's Government (folio 35). This leads to substantial correspondence on the matter between the Secretary of State for the Colonies, 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. and the Government of India, as well input from the Admiralty, Air Ministry and Petroleum Department over the need for such a clause and the military and strategic implications of non-British interests in Kuwait.

Also included with this correspondence are letters between the Foreign Office and the US Embassy regarding the United States of America's concerns that Americans are being excluded from negotiating concessions in Kuwait, and their expectations that any concession in Kuwait should be on the same terms as those granted in Bahrain.

Further correspondence and documents of interest include:

  • A new draft agreement, drawn up following the decision to drop the Nationality Clause (folios 180-204);
  • Copies of correspondence regarding the question of jurisdiction in Kuwait over non-Muslim foreign powers and referencing an agreement by the Shaikh of Kuwait in 1925 which granted the power of jurisdiction to His Majesty;s Government;
  • The Senior Naval Officer's confidential proceedings of 31 May 1931: 'The status of the Islands of Farsi, Harkis, Al Kuran and Arifi';
  • Correspondence relating to the Anglo-Persian Oil Company who are undertaking a geological survey of Kuwait and considering whether to apply for a concession;
  • A letter by Colonel Dickson, 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. in Kuwait, detailing a conversation with Major Frank Holmes in which he outlines where he believes the oil to be in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , and including, on folio 58, a sketch map of the three principal oil lines that Holmes believes to exist (folios 55-57);
  • Proposed amendments to the clauses of Holmes second draft agreement (found in IOR/R/15/1/638), written before the agreement to drop the Nationality Clause was reached, written by Dr Fermor, Director of the Geological Survey of India (folios 114-126);
  • A letter from the Air Ministry, 19 March 1932, requesting assurances that all possible steps will be taken to maintain the British position in the Gulf and highlighting the need to safeguard oil supplies as they are the main propellant of the RAF (folios 133-134);
  • Memorandum by the Admiralty expressing their concerns over future complications which could arise in the Gulf and their strategic objections to potential oil supplies not being in British control, and outlining current arrangements for obtaining and protecting those supplies (folios169-173).
Extent and format
1 volume (239 folios)
Arrangement

The file contains an index at the front of the volume which gives folio references, using the original foliation, for key items and includes a brief summary of the contents of the volume.

The papers in this file are arranged chronologically.

Physical characteristics

Foliation: The file has two sets of foliation; the principal foliation used in the catalogue starts on the first folio and concludes on the last and comprises pencil numbers enclosed in a circle located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. of each folio, excepting folios 159-162 where the numbers are not circled. The second foliation sequence is incomplete and covers the first folio of writing through to folio 211, with gaps in between. It comprises of pencil numbers (not circled) also located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. of each folio. From folios 100 onwards the numbers have been crossed through where they appear.

Foliation anomalies: 3A

Condition: The volume has been disbound

Written in
English and Arabic in Latin and Arabic script
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'File 86/1 II (D 78) Kuwait Oil. Eastern and General Syndicate' [‎130r] (263/460), British Library: India Office Records and Private Papers, IOR/R/15/1/639, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100023610017.0x000040> [accessed 25 April 2024]

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