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'D.178 86/13-III KUWAIT NEUTRAL ZONE' [‎244r] (487/602)

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The record is made up of 1 file (300 folios). It was created in 24 Nov 1946-3 Jun 1948. 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.

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Inter Pad
Political, Kuwait.
Prodrome, London.
Telegram
From
To
No.7.
Dated the 15th May, 1948.
IMPORTANT.
Secret. Following from 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. .
Shaikh hopes to close Neutral Zone auction by end
of month* Rhoades of Gulf Oil Company is here. In reply to
enquiry from Abraham Shaikh has asked him to come by May 20th.
Representative^ of American Independent Oil Company is at Cairo
and I understand will be summoned. Shaikh says he warned
Skliros of Iraq Petroleum Company since months ago that his
Company should send representative in May iff they are still
interested but has heard nothing further. Please telegraph
whether Iraq Petroleum Company will be sending representative.
Shaikh does not propose to invite Amerada and Sinclair iHfcszss
interests to bid.
2. Rhoades latest offer is 1 # 65 dollars per ton
royalty i.e. the equivalent of the royalty paid by Aramco in
Saudi Arabia, 3,750,000 dollars down and 600,000 dollars annua]
payment. He says he does not think his company can match the
royalty offered by the American Independent Oil Company but
that they are prepared to raise the down and annual payments
if necessary. He says that as the Company is now offering
dollar payments they will probably have to take up the
concession if granted as a purely American entity and that
Pyron will shortly be discussing this matter in London.
3. General opinion here is that one of the two
American Companies will obtain the concession owing to the
attractiveness of the dollar payments.
4. Wells of Amerada has applied for Kuwait visa
for visit of three months to negotiate oil lease for Amerada,
the Continental Oil Company and Seaboard Oil Company. He
may be thinking of endeavouring to obtain lease for sea-bed.
Shaikh has approved of grant of visa.
Political
MB.

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Content

The file contains 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 The historical term used to describe the body of water between the Arabian Peninsula and Iran. (William Rupert Hay); 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 (Gordon Noel Jackson, Maurice O’Connor Tandy); 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. (later the Commonwealth Relations Office, Eion Pelly Donaldson, Adrian Harbottle Reed, Ralph Ingham Hallows); the Foreign Office (Lancelot Frank Lee Pyman); the Ministry of Fuel and Power (William Dunmore Monsell-Davies); His Majesty’s Minister at Jedda (Alan Charles Trott); the Shaikh of Kuwait (Shaikh Aḥmad al-Jābir Āl Ṣabāḥ) and various oil companies in relation to the auction process instituted by the Shaikh of Kuwait for his share in the Kuwait-Saudi Arabia Neutral Zone oil concession.

The companies which expressed an interest in bidding for the Kuwait neutral zone concession included Petroleum Concessions Limited, the Burmah Oil Company, the Eastern Gulf Company, the Amerada Petroleum Company, the American Independent Petroleum Corporation, the Superior Oil Company of California and the Canadian Eagle Oil Company. However owing to the Shaikh's requirement that financial backing and resources to undertake exploitation of an oil concession are proven by each potential bidder only four companies were permitted to continue and submit final bids on 1 June 1948 – Petroleum Concessions Limited, the Burmah Oil Company, the Eastern Gulf Company and the American Independent Petroleum Corporation.

Other matters discussed in the file include:

  • the question of the political agreement between His Majesty’s Government and successful Oil Company and discussing whether such an agreement could be made with an American Company and also what changes and special requirements would have to be made owing to the concession only being for the Shaikh of Kuwait’s share of the neutral zone.
  • a visit paid by the Shaikh of Kuwait to Ibn Saud (‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd)and the question of whether or not the neutral zone was discussed by them.
  • debate around the possibility of a geographic division of the neutral zone in order to make administration of the zone easier, and the conclusion that negotiations for such a division could take years and would not perhaps be in the best interests of the Oil Companies exploiting an oil concession there.
  • a hydrographic survey of the coast-line of the neutral zone to locate a suitable landing site for heavy equipment.
  • a new air service instituted by Iraq Airways in 1947 that would fly from Basra to Kuwait and Bahrain.

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 272-299.

Extent and format
1 file (300 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 back cover with 302; 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 2-99 and ff 113-300; 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 in Latin script
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'D.178 86/13-III KUWAIT NEUTRAL ZONE' [‎244r] (487/602), British Library: India Office Records and Private Papers, IOR/R/15/1/687, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100029106993.0x000058> [accessed 29 April 2024]

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