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'Confidential 86/7 - ix B.52. P.C.L. TRUCIAL COAST' [‎103v] (211/420)

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The record is made up of 1 volume (206 folios). It was created in 1 Jan 1938-13 Jan 1939. It was written in English and Arabic. 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.

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2
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Concessions (Limited) does not include an Iraqi Government Director. Lord
Cadman is chairman of both companies. The shareholding of the Iraq Petroleum
Company is divided as follows :—-
Percentage.
British—
Anglo-Iranian Oil Company ... ... ... 23-75
Dutch—
Royal Dutch Shell 23 -75
French—
Compagnie Francaise des Petroles ... ... 23-75
American—
Near East Development Company (i.e., Standard
Oil of New Jersey and Socony-Vacuum in
the proportion of 50-50) ... ... ... 23-75
Participation and Investments (Limited)—
C. S. Gulbenkian ... ... ... ... ... 5 00
100 00
Koweit.
4. The concession for this territory is held by the Koweit Oil Company
(Commercial Agreement, dated the 23rd December, 1934; Political Agreement,( 2 )
dated the 5th March, 1934), the capital of which is held jointly by the Anglo-
Iranian Oil Company and the Gulf Oil Corporation of America (Mellon Group).
5. One well was put down on the north side of Koweit Bay, but only small
quantities of oil were found. Another well has been drilled at Burgan, south of
Koweit Bay, and was successful in striking oil.
Koweit Neutral Zone.
6. The boundaries between Koweit and Nejd were settled at the Uquair
Conference of November 1922, when certain territory was recognised as common
to these two States. Under this settlement the Rulers of Koweit and Nejd were
to enjoy equal rights in the zone until such time as a fresh agreement should be
arrived M between them. Consequently, neither Ruler can grant an oil concession
in the zone without the consent of the other.
7. Matters in regard to oil negotiations in the Neutral Zone have, in
consequence, reached a deadlock. Petroleum Concessions (Limited) cannot move
because the Sheikh of Koweit, to whom application has been made, refuses to grant
an option in respect of his share of the oil rights in the zone, since he considers
that he is entitled to all the rights in the zone and hopes to obtain them when
Ibn Saud dies. Petroleum Concessions (Limited), however, have been informed
by the Sheikh of Koweit that he will, if he changes his mind, inform them before
any other company. On the other hand, Ibn Saud, the ruler of Saudi Arabia, who
is now thought to favour exploitation of the zone by a British company, is
committed to the Standard Oil Company of California by reason of a special
agreement with that company, under which they received a preferential position
in respect of Ibn Saud’s rights in the zone much the same as that which they
received in regard to the unallotted areas in Nejd (see paragraphs 24-28 below).
Bahrein.
8. Oil development in Bahrein is being undertaken by the Bahrein
Petroleum Company (Limited) under a lease granted to the company by the Sheikh
of Bahrein on the 29th December, 1934, and modified on the 3rd June. 1936. The
lease covers practically the whole of the Island of Bahrein, and runs for a period
of fifty-five years from the 1st January, 1935. Up to the end of 1937 58 wells had
been drilled or were about to be drilled, 33 were producing, and 14 were shut-in.
Production during 1937 amounted to approximately 1,108,894 tons.
( 2 ) -By 11 Political Agreement is meant in this memorandum an agreement between the
concessionary company and His Majesty’s Government, to which the Ruler concerned is usually
an assenting party, by which the company undertakes not to transfer the concession to
non-British interests and to be guided by the advice of His Majesty’s Government generally.

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Content

The volume comprises correspondence in English and Arabic between 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 Historically used by the British to refer to the sea area between the Arabian Peninsula and Iran. Often referred to as The Gulf or the Arabian Gulf. (Trenchard Craven Fowle, Hugh Weightman), 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 Bahrain (Hugh Weightman, John Baron Howes), the Residency A diplomatic office of the British Government established in the provinces and regions considered part of, or under the influence of, British India. Agent at Sharjah (Khan Sahib Saiyid ‘Abd al-Razzaq), 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. (John Charles Walton, John Percival Gibson, Roland Tennyson Peel), and Petroleum Concessions Limited (John Skliros, Frederick Lewisohn, Stephen Hemsley Longrigg, Basil Henry Lermitte, Ernest Vincent Packer) regarding negotiations for oil concessions with the Trucial Coast The historic term used by the British to refer to the Gulf coast of Trucial Oman, now called United Arab Emirates. Shaikh’s.

Petroleum Concessions Limited’s negotiations with Shaikh Sultan bin Salim [Sulṭān bin Sālim Āl Qasimī], Ruler of Ras al Khaimah [Ra’s al Khaymah] are discussed, in which an agreement was initially reached with the Shaikh, who requested to see the political agreement between His Majesty’s Government and Petroleum Concessions Limited prior to concluding a concession agreement with the Company. A copy of the political agreement can be found at folios 65-66. The negotiations ultimately concluded an exploration permit for the Shaikh’s territory; with an allowance within the permit to a subsequent agreement for drilling and exploitation should the results of the exploration be favourable.

Also included is correspondence regarding the Shaikh Sultan bin Saqr [Sulṭān bin Saqr Āl Qasimī], Ruler of Sharjah’s refusal to undertake the previously agreed exchange of letters, including his attempt to reword one of the letters, and potential measures that could be used to compel him to complete the exchange prior to his eventual agreement and formal completion of the Sharjah Concession Agreement. A printed copy of the concession agreement, political agreement and letters exchanged can be found at folios 92-101.Further correspondence relates to the question of the political agreement and whether the agreement of the Trucial Coast The historic term used by the British to refer to the Gulf coast of Trucial Oman, now called United Arab Emirates. Shaikh’s to such an agreement is necessary.

The correspondence concludes that the agreement does not require the Shaikh’s approval however as Dubai and Sharjah had both previously agreed to the political agreement and the Regent of Kalba was happy to agree to it as part of the concession it was not necessary to take any action on the matter at that time. Also discussed is the requirement for HMG Her or His Majesty’s Government in London. approval to the establishment of a bank as part of the agreement and whether this was necessary; and the movements of the Standard Oil Company of California and the likelihood that they were using their alleged interest in Trucial Coast The historic term used by the British to refer to the Gulf coast of Trucial Oman, now called United Arab Emirates. Oil Concessions to improve their chances of obtaining a concession in the unallotted area in Bahrain.

Other matters discussed in the volume include:

  • attempts at re-opening negotiations with Shaikh Shakhbut bin Sultan [Shaikh Shakhbūt bin Sulṭān bin Zāyid Āl Nahyān], Ruler of Abu Dhabi, and the Shaikh’s insistence in writing that he was not bound by His Majesty’s Government approval and was free to negotiate with whomever he wished;
  • a conversation between 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. and Hamilton Ballantyne of the Bahrain Petroleum Company (BAPCO) regarding representatives of the Shaikh of Bahrain (Shaikh Ḥamad bin ‘Īsá Āl Khalīfah) having alluded to the Shaikh’s desire to grant a concession for the remaining unallotted area of his territory to BAPCO but fearing that he would lose control of the Hawar Islands if he did so;
  • Petroleum Concessions Limited’s interest in a negotiating concession for the territory of Kalba [Kalbā] with Shaikh Khalid bin Ahmad bin Sultan [Shaikh Khālid bin Aḥmad bin Sulṭān Āl Qasimī], Regent to Shaikh Hamad bin Said [Shaikh Ḥamad bin Sa‘īd Āl Qasimī] who was a minor. The correspondence discusses the actual extent of Kalba territory; Shaikh Khalid’s desire to create a combined Qawasim [Qawāsim] Shaikhdom with himself as ruler and his close relations with the Bani Chittab [Beni Qitab] tribe; and the concession agreement that was reached between the two parties;
  • printed summary issued by the Petroleum Department of His Majesty’s Government detailing petroleum developments in the Arabian Peninsula in relation to Petroleum Concessions Limited (folios 103-105, 127-129).

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 196-203.

Extent and format
1 volume (206 folios)
Arrangement

The volume contains a table of contents on folio 4 comprising of subject headings and page references. 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 also present in parallel between ff 6-195 with a gap between f 40 and f 91; these numbers are also written in pencil, but are not circled and are located in the same position as the main sequence.

Written in
English and Arabic in Latin and Arabic script
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'Confidential 86/7 - ix B.52. P.C.L. TRUCIAL COAST' [‎103v] (211/420), British Library: India Office Records and Private Papers, IOR/R/15/1/679, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100025806951.0x00000c> [accessed 11 December 2019]

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