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'Confidential 86/7 - ix B.52. P.C.L. TRUCIAL COAST' [‎105r] (214/420)

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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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27. A further provision is that the Standard Oil Company of California
shall have the right to recover “by means of deductions from one-half of the
royalties due to the Government" the amount of two loans totalling £50.000 gold
received by the Saudi Arabian Government from the company.
28. On the same date as the conclusion of this modified agreement letters
Gere exchanged by the company and the Saudi Arabian Government defining the
company’s preference rights in regard to (a) “ the balance of Eastern Saudi
Arabia ” referred to in paragraph 26 above, and (b) the Koweit Neutral Zone (see
paragraph 7 above). The effect of these preference rights in (a) is to entitle the
company to acquire an oil concession on terms equal to those which may be offered
to the Saudi Arabian Government by another company. If the Standard Oil
Company of California elect not to exercise their right, the Saudi Arabian
Government is free to accept the other company’s offer. Otherwise, the Standard
Oil Company of California’s preference right shall continue at least so long as the
provisions of the special agreement remain in force.
The Yemen.
29. No concession has so far been obtained in this territory owing to the
attitude of the Imam Yahya, who opposes the exploitation of his country by foreign
interests. The French interests in Petroleum Concessions (Limited) have, how
ever, been successful in inducing the Imam to permit two geologists to visit the
Yemen for a period of six months.
Muscat and Oman.
30. Two concessions^) have been obtained from the Sultan of Muscat and
Oman by Petroleum Concessions (Limited), one in respect of Muscat and Oman
except the district of Dhofar and the other in respect of Dhofar. Both commer
cial agreements are dated the 24th June, 1937, and run for a period of seventy-
five years. The Sultan at first showed himself averse from being associated in
any way with any political agreement between His Majesty’s Government and the
company. This question was, however, discussed with the Sultan during his visit
to this country in April of this year, and the Sultan in the end agreed to be
associated with such an agreement in a modified form.
31. An aerial exploration which it is hoped to carry out in the eastern
portion of the Aden Protectorate will probably include the western portion of
Muscat and Oman.
Refinery Agreement with Petroleum Concessions (Limited).
32. A general Refinery Agreement was entered into between His Majesty’s
Government and Petroleum Concessions (Limited) on the 5th February, 1937.
Briefly, the agreement provides that whenever the production of crude oil in the
areas over which the company hold, or may hold, oil concessions in the Persian
Gulf area reaches a total of 500,000 tons per annum, the company shall erect, on a
site to be agreed, a refinery or refineries with a total capacity of not less than
250,000 tons per annum, unless it can be shown to the satisfaction of His
Majesty’s Government that this would be precluded by commercial considerations.
The agreement also provides for a re-examination of the question of the refinerv
| capacity in the event of the total annual production exceeding 1 million tons
per annum.
Rre-em'ption of Oil in the Event of an Emergency.
33. The political agreements entered into between His Majesty’s Govern
ment and Petroleum Concessions (Limited), in respect of the concessions secured
the company in Qatar, Debai, Sharjah and Ras-al-Khaimah, provide, inter
Ma, that in the event of a state of national emergency or war (of the existence
°fi which His Majesty’s Government shall be the sole judge) His Majesty’s Govern-
Nent shall have the sole right of pre-emption of all crude oil obtained under the
concessions and of all the products thereof. His Majesty’s Government have also
the right to require the company to the extent of any refining capacity it may have (*)
(*) A separate concession may be granted by the Sultan later for his Asiatic territory,
l,e 'i txwadur.

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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' [‎105r] (214/420), British Library: India Office Records and Private Papers, IOR/R/15/1/679, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100025806951.0x00000f> [accessed 10 December 2019]

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