'File 38/2 Petroleum Concessions Limited's Policy' [‎16r] (31/44)

date'
(Received under Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. P»L. NO.580-S dated 9.4.1947)
Copy of Letter No. Rxt.643/37 dated 28.3.47 from E.P. Donaldsoii,
Esq., C.M.G., 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. , London, to the Ron'ble Lt-Col.
W.R. Hay, C.S.I., C.I.E., Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
I enclose a ‘copy of a letter from Longrigg about the
2 bth IlarcTi) settlement of disputes which may arise between
Rulerif or Tribal Chiefs regarding the ownership of oil rights
when p.C.L. begin drilling on the frucial Coast.
I think that the disputes will, as I said to Longrigg
on the telephone, have to be dealt with as they arise, and it
will presumably be best that cases should be discussed In the
first instance between the company’s Manager at Bahrain and the
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. . I enclose a copy of my interim reply, and, if
you have any comments to offer at this stage we should be glad
to receive' them.
Copy of Mr. Longrigg’s ('Iraq petroleum Co., Ltd., London)
letter dated the 25th March. 1947, to Mr. E.P. Donaldson.
I write, as v/e arranged, to confirm our telephone con
versation of this afternoon. in it, I indicated that the day
was now not distant when we should wish to commence drilling
on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. and that we felt it would be essential that
the rights over any given drilling site or potential oilfield
(that is, in exactly which Sheikhdom it fell) should be estab
lished beyond question before drilling began. It is not improb
able that some such sites or possible oilfields .may lie in areas
susceptible of dispute'by the adjacent Rulers, or (in a slightly
different case) between a Ruler from whom we hold rights and a
Tribe, claiming to be independent, from whom v/e do not.
You confirmed our existing view that such boundary
settlements would be the function of the political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. or
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. and you encouraged me to think that if and when
Such a case were referred to him, he would adjudicate on it and
thus place the natter beyond doubt; evidently a most necessary
/’thing since conflicting and unresolved claims to a site which
; might prove valuable would be a source of endless trouble and
danger. I propose to send a copy of this letter to our Manager
at Bahrein with the suggestion that he should approach the P.A.
or P.R. in this sense, hoping for a reply, or replies, to ques
tions in one of two forms (a) “is point ’A’ definitely within the
area of Sheikh ’X', or is it susceptible of any dispute?” or (b)
"can you please tell us, alternatively, what is the line of
demarcation between the Sheikhdoms of Sheikh ’Y’ and Sheikh Z .
I understand from you, as I should have expected, that you
would prefer not to undertake a general ooundary demarcation of
the area, but would prefer Political to limit their ruxings to
points of possible dispute.
Copy of 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. Letter No. Ext. 643/47/dated 28.c:.4, 7 to Mr.
p Loi££i££-
Thank you for your letter of 25th March about the settle
ment of possible disputes regarding the ownership of oil rights
on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. .
‘ ' I am sending a copy of your letter to the Political Resi-
i ! dent for any comments he may have to offer at this stage. I
I think it will probably be found most convenient for cases to be
/ discussed, as jtkgk they arise, between your local Manager and the
; political AgentfBahrein, in the first Instance, but I will write
to(you again when I have heard from Hay.
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