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'Confidential D 107 86/5-I Eastern and General Syndicate Ltd. - Saudi Arabia' [‎108r] (220/386)

The record is made up of 1 volume (213 folios). It was created in 5 Mar 1933-30 Jan 1935. It was written in English. The original is part of the British Library: 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. Records and Private Papers Documents collected in a private capacity. .

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3
Boring operations include the ordering of implements and plant and their ship
ment to Saudi Arabia, and also include the making and preparation of roads,
camps, buildings, fittings, transport and communications, and the erection and
running of tools, machines and other means of well-sinking, &c.
Immediately after the discovery of oil in commercial quantities, the Company
shall remit to the Government the loan which has been agreed upon, and after
one year shall make them another loan. The date of remitting the first loan
shall be that on which oil is discovered in commercial quantities as laid down in
this agreement, and that of remitting the second loan shall be after one year from
that date. In both cases the Government shall grant the Company a period of
sixty days’ delay in which to pay it.
discovering oil in commercial quantities, and as it has also been agreed that the
annual rent should be paid in advance, it is possible that the last payment of
annual rent before the date of discovering oil in commercial quantities may
include a certain period after the date of discovery. If this extra period equals
one-fifth of a year or more, an amount of annual rent proportional to this period
will be considered as a loan due by the Government.
As soon as possible {i.e., the Company will be allowed a reasonable time for
ordering tools and additional materials and for getting them shipped to Saudi
Arabia to start the additional work) after the date of discovering oil in
commercial quantities the Company shall resume boring operations, employing
at least two of the machines, and shall continue these operations persistently
and energetically till it completes boring all over the prescribed area, m
conformity with the practice observed in first-class oil-fields, or until the expiry
of this agreement.
The Company shall pay to the Government royalty on all crude oil drawn
out and stored, and which flows from the field storage reservoir, aftei
deducting—
(1) Water and other foreign substances. .
(2) Oil required by the Company for the ordinary running of its plant
in the Saudi Arab Kingdom. . . ... ,
(3) Oil required for the purpose of making those quantities of benzine and
kerosine which will be supplied free to the Government every year
in pursuance of article 16 of this agreement.
The amount of royalty per ton net weight of crude oil will be
(a) 45 . gold, or its equivalent; or , 4
(b) In accordance with the choice which the Company may make at the time
of payment of each instalment, 1 dollar United States currency per
ton net weight of crude oil, plus any difference there may be between
the average dollar exchange value of 45. gold taken over the three
months directly previous to the date of payment of the instalment,
and 1-10 dollars United States currency.
Article 8.
Article 9.
As it has been agreed that the annual rent shall be paid up to the date of
Article 10.
Article 11.
Article 12.
oyalty equivalent to one-eighth of the revenue from
b 2
[991 m—3]

About this item

Content

The volume contains correspondence to and from 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. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (Trenchard Craven Fowle, Percy Gordon Loch), 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. at Bahrain (Percy Gordon Loch), and 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. at Kuwait (Harold Richard Patrick Dickson) regarding matters in Saudi Arabia and their affect, particularly on Kuwait and Bahrain. The main topic of discussion being a concession in Hasa, Saudi Arabia which was contested by the Standard Oil Company of California and the Iraq Petroleum Company, and was awarded to Standard Oil in July 1933.

The correspondence, primarily between HM's Minister at Jedda (Sir Andrew Ryan) and the Secretary of State for Foreign Affairs (Sir John Simon) includes details of the negotiations and translations of the concession agreement which was published in Umm-al-Qura in July 1933. Also discussed are attempts to obtain information about the special agreement between Standard Oil and the Sa'udi Arab Government which was not published and which contained details of the exact values of the concession, the area covered by it, and a clause relating to the Kuwait-Najd neutral zone concession. Later correspondence also discusses the progress being made by Standard Oil in developing their concession.

Other matters discussed in the file include:

  • correspondence from 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. at Kuwait regarding rumours that the Shaikh of Kuwait (Shaikh Aḥmad al-Jābir Āl Ṣabāḥ) travelled to Najd to meet with Ibn Saud (‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd), King of Saudi Arabia, or one of his close advisers to discuss matters including a potential alleviation of the blockade on Kuwait and their joining forces in regards to the oil concession agreement in the neutral zone (ff 6-17);
  • a memorandum written by the Petroleum Department about Petroleum in Arabia which covers the topics: Petroleum prospects in Arabia, interested or potentially interested companies, past concessions affecting Saudi Arabia, the present position. The memorandum includes brief summaries of all the key oil companies and interested parties in oil concessions in Arabia (ff 90-91);
  • correspondence regarding the prohibition on private planes flying to Bahrain and a request by the Standard Oil Company of California to use Bahrain as their base of operations during their survey of Hasa which was denied, and the eventual decision to allow Standard Oil's aeroplane to land at Bahrain should there be a serious medical emergency involving either their staff or those of the Mesopotamia-Persia corporation (ff 112, 131-133, 155-156, 173-175);
  • a record of an interview which Frederick Charles Starling of the Mines Department had with Edmund William Janson of the Eastern and General Syndicate Limited in which Eastern and General's interest in a possible concession in Asir was discussed along with their activities in regard to previous concessions (ff 147-149).

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 179-187.

Extent and format
1 volume (213 folios)
Arrangement

The papers are arranged in approximate chronological order from the front to the rear of the file.

Physical characteristics

Foliation: The main foliation sequence (used for referencing) commences at the front cover, and terminates at the inside back cover; these numbers are

written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional foliation sequence is present in parallel between ff 6-192; these numbers are also written in pencil, and can be found in the same position as the main sequence, but they are not circled.

Written in
English in Latin script
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'Confidential D 107 86/5-I Eastern and General Syndicate Ltd. - Saudi Arabia' [‎108r] (220/386), British Library: India Office Records and Private Papers, IOR/R/15/1/667, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100025704696.0x000015> [accessed 18 April 2024]

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