'Status of islands between Bahrain and Saudi Arabia.' [‎26r] (51/228)

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la right that you should have this inforaation at once 9 par
ticularly since it has an important bearing on the Bainain
question* It is obviously desirable that our views on that
question should be so framed that they can do no damage to
Bahraini prospects of sharing fully in any profits which
may accrue from developments occurring in the outside shoal
waters*
5* Reasonably close in to the Bahrain coast there are
convenient exposed humps on the main shoals 9 e*g* the Fasht al
*
Jarim, Khor Fasht and Fasht al Jlbal 9 which have been claimed
for Bahrain by the erection of marks* With the exception of
the Bainain no objection has been raised by any other party
and we may presume therefore that no one is likely to dispute
Bahrain's right to grant an oil concession covering these
reefs and shoals* Further out however y few, if any 9 of the
shoals show above water at any state of the tide, — though
they may be equally interesting from an oil point of view*
North and west of Bahrain I do not think we need anticipate
that any oil company other than the California Company and
its subsidiaries will attempt to work, and consequently com
mercial competition will not in this area introduce complica
tions* Fortunately also relations between Ibn Saud and Bahrain
are excellent, and though Ibn Saud will naturally be anxious
that the Arabian subsidiary should exploit as much of the
shoal area as possible (and pay the royalties to him), it seems
to me that the present is an excellent opportunity to mark off
what one might call "spheres of influence' 1 for Saudi Arabia
and Bahrain and their concessionaires respectively* I think
therefore that there is a great deal to be said for following
up the suggestion made by Shaikh Yusuf Yasin for "drawing a
line midway between Bahrain and the mainland" - and then pro
ducing it indefinitely to the north*