'Oil Concessions' [‎160r] (328/734)

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Rf 10,000 to Rp SOjOOOo^t ia made clear that rcckonin
to te made by the English and not the Arabic year„
In tht 0B.Beof tlic aining loaaea rtftrtno* is
rtqutstod to Article m ©f t TMrd Sohedult. The
Bahrain Goyernxnent rtquire the Company to pay them
Re 20,000 annually in lieu of the Re 10,000 euggeeted
Maj ot Holmes. The sums of Ks 30,000 mentioned in
ArtioleVS of the fhird Schedule are accordingly raised
to Bs 70,000.
3. Major Holmes considered himself unable to
acoept these increased payments on behalf of his
Company whereas the Bahrain State Adviser considers
that, in the altered circumstances, since the first
agreement was signed, the sums now demanded err if at
all on the side of gemerosity to the Company.
The Company has now had the advantage of
2jtyears exploration, hence they are not talcing the
same risk as formerly. Their explorations have apparent
-ly conTinced them that oil is to he found in the
islands, and that it is worth their while to take over
areas not already covered by their original agreement.
Suoh being the case the State considers that they
should he prepared to pay the extra price demanded. If
the Company do not wish to pay, the State authorities
are quite satisfied with the original agreement and do
not desire to sign a new one.
4. The other points of difference are of minor
importance. Major Holmes had agreed to meet the
Bahrain Governments wishes, hut subsequently for what
appear to he tactical reasons withdrew his consent^and
re-submitted his original proposals, on hearing that
tht Bahrain State pressed their demand for the increaseiC
preliminary payments.
I will take the Bahrain State*s modifioa-
-tionu seriatim.
.Article