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'B. 56. Confidential 86/14 - v. BAHRAIN UNALLOTED AREA.' [‎110r] (224/510)

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The record is made up of 1 volume (251 folios). It was created in 14 Feb 1939-2 Aug 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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P.Z. 2067/39-
Military Branch,
M. 01463/39-
Admiralty, S.V.1.
31st March, 1939 .
Immediate and Confidential ,
Dear Peel, *
In reply to your letter No. P. i. 1111/39 dated March
1st, I am now able to give yoa the views of the Admiralty
on the Sheikh of Bahrein's proposal to grant the concession
for the whole oi the Unallotted Area, including the Hawar
Islands, to the Ba.hrein Petroleum Company#
2. Our first observation is that the financial terms
offeree, oy the Company are in substa.nce not so generous as
they may appear to be on the surface* as we understand it,
the minimum annual royalty which they are offering to
guarantee for the next fifteen years is only about half that
already derived from present production in Bahrein, so that
provided the existing oil field produces for the next
fifteen years a.t little more than half its present rate, the
Company would be able to make up its guarantee without
difficulty, on the existing field. ^s no additional payment
is offered other than the initial 400,000 rupees for the new
fields, the net effect is that, leaving aside the remote
possibility of the failure of their present field (when they
might in any case be unable to meet their obligations) they
pay nothing, beyond a small sum down, for the rights over
the Unallotted ^rea, including the Hawar Islands.
3- Ve recognise that in any event the Sheikh is unlikely
to be much influenced by a simple comparison of the cash
offers made by the two applicants for the Unallotted Area or
portions thereof, since he appears to have always in mind
the, probably exaggerated, fear that the Bahrein Petroleum
Company,/
; Peel, Esq. , M. C. ,
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. ,
S. V. 1.

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Content

The volume comprises correspondence 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), 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), 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. (Roland Tennyson Peel, John Percival Gibson), the Secretary to the Government of India, External Affairs Department (Sir Aubrey Metcalfe), the Shaikh of Bahrain (Shaikh Ḥamad bin ‘Īsá Āl Khalīfah), Bahrain Petroleum Company (Hamilton R Ballantyne, Fred A Davies, Max W Thornburg), and Petroleum Concessions Limited (Frank Holmes, John Skliros) regarding the Shaikh of Bahrain’s proposal to grant a concession for the whole of the unallotted area, including the Hawar Islands, to the Bahrain Petroleum Company and His Majesty’s Government’s approval of the proposal.

Following on from the approval of the proposal to grant a concession to the Bahrain Petroleum Company (BAPCO) the correspondence focuses on discussion around the proposed agreement, to take the form of a deed of modification to BAPCO’s 1934 lease and the political agreement which would accompany the concession. The main areas of discussion including the definition of the area the concession would cover, and the need to include a pre-emption clause in the political agreement. Copies, in Arabic and English, of the draft deed of modification (ff 146-161, 170-180, 218-227) and draft political agreement (ff 133-139) are included in the volume.

Also discussed in the volume is the conclusion of the sovereignty question relating to the Hawar Islands following the submission by the Shaikh of Qatar (Shaikh ‘Abdullāh bin Jāsim Āl Thānī) of a response to the counter-claims made by the Shaikh of Bahrain. On reviewing both claims and supporting evidence His Majesty’s Government's final decision was that islands belonged to Bahrain and not Qatar.

Also included in the volume are copies of draft concession agreements put forward by Petroleum Concessions Limited including one for the Hawar Islands (ff 8-26) and one for the waters and islands of Bahrain, described as the shoal area (ff 44-65).

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 242-248

Extent and format
1 volume (251 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 with 1, and terminates at the inside back cover with 253; 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 6-241; these numbers are also written in pencil, but are not circled, and are located in the same position as the main sequence. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

Written in
English and Arabic in Latin and Arabic script
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'B. 56. Confidential 86/14 - v. BAHRAIN UNALLOTED AREA.' [‎110r] (224/510), British Library: India Office Records and Private Papers, IOR/R/15/1/692, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100028055900.0x000019> [accessed 16 October 2019]

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