'File 10/1 IX Bahrain Oil Concession' [‎17r] (43/522)

11.
10. Ihere Xollowsd a coiisid.6rcit)le discussion on all
aspects of this question, which it is unnecessary to
record, ihe main arguments brought to hear upon him
were
(a) ihe Company were now at a decisive stage in
their relations with the sheikh, once the Mining Lease
had heen signed its provisions would operate (subject
to the possibility of a revision of the rate of royalty)
for 55 years. The Sheikh was therefore quite entitled
to expect some special consideration of his interests.
H.M.G. for their part equally regarded it as of real
importance to secure an equitable arrangement for him.
If tney could secure that equitable arrangement (and
minimum royalties on the basis of Hs.30,000 - 60,000 -
100,000 after five years appeared to them, as at present
advlsea to be reasonable) the Company need not fear that
we would incite the sheikh to make unreasonable demands
subsequently. But it was important, now that the Ivlining
Lease was to be concluded, to start it well and to give
the Sheikh no legitimate ground for grumbling, we felt
that he had such a ground at the moment.
(b) Asforaquid pro quo, Mr. Ballantyne had agreed
^s to the importance of the concession represented by the
right of three months' notice in theisw Article XI. we
should in fact be prepared to meet the Company on the
various points outstanding between us over the revised
fining Lease in the event of their meeting us over
commercial exploitable quantity, if they wisned to
suggest any other minor point on which we could make
a concession, we would be glad to consider it. (i added,
however, in reply to an enquiry from him, that it would
not be possible in view to link up an increase in the
royalty/