'Oil Concessions' [‎99r] (206/734)

Bahrein. 19th, May 1928.
To.
His B. M' s 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. ,
B A H R E I N .
Sir, . Pgr'
I am in receipt of your No. 0/166 of 1928 dated the
16th May 1 92B for which I thank you.
Before answering your queries specifically I would
point out generally that the Agreement,made between the Ruler
of lahrein and ray Syndicate, should be read as^whole and not in
parts, lor instance the amount of Royalty can not be divorces
ifrom the privileges bestowed by the Bahrein Government in grant
ing raj Company the right of free import of machinery and other
goods.
The terms of the Agreement,under discussion^were
agreed upon at a lengthy conference at the Colonial Office before
it was submitted to H .E. Sheikh Hamad Bin Eheikh Esa Al-Khalifah
At the conference referred to, the following persons
were present ;- Major Young was in the chair. Two persons repre
senting the Petroleum Section of the British Government. Two Co
lonial Office Officials. Mr.Janson and I represented the Eastern
and General Syndicate Limited.
The whole trend of Major Young's efforts was to increa
the amount of Royalty payable on the oil won. In order to increa,
the Royalty he kas prepared to exempt the Concession holders from
payment of all Custom Duties and Taxes usually payable to the
Bahrein Government.
That Major Young was successful can be seen by the ver^
Qyalty, of Rs.3-^-0. per ton on oil won, that is payable to
the Bahrein Government (Article VIII Third Schedule).
To reply in detail to your request asking for an inter-
pretaoxon of Article V of First Schedule, Article VI of the
Second schedule and Article IV of the Third Schedule, I submit th £
following: - '•