'14/115 II B. 5. Abu Musa. Abu Musa oxide contracts and concession. Hassan Samaiyeh's dealings with the Germans.' [‎39v] (84/467)

has purcliased the Chief of Sliargah's share and holds a writirm tn
from the Chief." I am at a loss to know what that means, but am tv
steps to ascertain. ' waning
In any ease the Concessionaires have behaved in a hole-and-corner a
obstructive way and deserve no consideration from us, and it remains f
Government to consider whether steps should not be taken to unset fh
arrangement. It is probable that Messrs. Strick & Co. would be quite read
to take up the trade on terms equally advantageous, for the Government f
India will note from the papers forwarded to me under Porei^n Denartm +
endorsement No. 4!213-E.A., dated 22nd November 1905, that they are pavi <»
to the Moin-ut-Tujjar for the Hormuz product more than double the rat
obtained by Haji Hassan from Herr Wonckhaus. In fact, I understand th t
Messrs. Strick were on the point of making the Shargah Concessionaires a
offer when they were forestalled by the German Firm,
5. The following arguments suggest themselves to me in connection with
the possible withdrawal of the concession:—
(«) Hassan Samaiyeh, if taxed with disregard of Sheikh Sagar's interests
or instructions, or of the wishes of the Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. , would no
doubt argue that nothing had been permanently ' alienated
his agreement with Herr Wonckhaus merely providing for a sale
of prospective produce.
(5) The agreement {vide opening lines) purports to be executed between
Herr Wonckhaus and " Mr. Hassan bin Semey " as " owner and
holder of the Bu Musa Concession," and him only. At the end
it is signed solely by the said Hassan, but he adds the words
" wa shurqahd" ("and his partners") after his signature.
It is understood that Hassan has always been the working
partner, but it is doubtful whether he carries any document
authorising him to enter into written and unlimited contracts
without consulting the other parties. His son Abdulla would
of course, express cognizance and approval of his father's action'
but the third sharer, Esa-bin-Abdul Latif, was apparently not
consulted and would, no doubt, record his dissent if advised to
do so.
(c) In view of advice given to the Trucial Sheikhs in time past by
the Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. , warning them against the grant of monopolies
without reference to Bushire, the fact that an unlimited
monopoly has been granted would afford the Sheikh of Shargah
reasonable grounds for cancelling the concession.
(d)But it would seem to be unnecessary for the Sheikh, should be
agree to cancel it, to introduce any reference to instructions or
Hdvice received from the Resident; for, seeing that the original
concession provided no time limit on either side, there seems to
be nothing to prevent Sheikh Sagar from withdrawing it at will,
on any reasonable grounds ; and these certainly exist in the fact
that the commercial value of the red oxide has lately increased
to an extent which makes the rent paid by the Concessionaires
(250 dollars per annum) ridiculously small. Sheikh Sagar's
object in resuming control of the red oxide export would be
with a view to working it directly for his own benefit in
association with Messrs. F. C. Strick & Co. or some other
British Firm as his Managing Agents.
6. In short, there would seem to be no practical difficulty in bringing about
the extinction of the concession ; it would appear to be merely a question of
political feasibility which Government are in the best position to appraise.
It may be that the potential value of the red oxide deposit, which is
difficult to gauge, is not of very great magnitude, but the political importance
at the present juncture of preventing the acquisition by Germany of vested
interests in the Gulf can hardly be questioned.