Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎23r] (47/284)

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His Britannic Majesty's 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. ,
Bahrein.
Dear Sir , 24th April, 1932.
Please refer to your letter No. 0/47, dated 23rd April, 1932, being a reply to
my letter of 22nd April, 1932, dealing with the interpretation of Clause IX, Schedule 2,
of the Bahrein Oil Concession Agreement.
On behalf of the Bahrein Petroleum Company, Limited, I request you to ask the
Bahrein Government to change the reading of Clause IX, Schedule 2, so that the clause
will then read as follows :—
" Clause IX. The right to win up to 100 (one hundred) tons of oil free of
payment, and further quantities of oil on payment of the royalty per ton provided
in the mining lease.
" The privileges in this clause may only be enjoyed by the Company during
the period for which the prospecting licence or its extensions are granted or until
the Company declare that oil has been discovered in commercially exploitable
quantities, whichever is the shorter."
Wording of Clause IX at present is as follows :—
" Clause IX. The right to win up to 100 (one hundred) tons of oil free of
payment and further quantities of oil on payment of the royalty per ton provided
in the mining lease, but on condition that the Company shall apply for a mining
lease in respect of each area in which work is proceeding as soon as more than
100 tons of oil are won from one single bore hole within it."
I have explained in my letter of 22nd April, 1932, the difficulties that Clause IX
presents as it now reads in the Concession Agreement. The object in making the
request that the wording be changed is not to delay the Company entering Schedule 3
of the Concession Agreement. The Company venture to predict that to change to
Clause IX, as asked, will hasten rather than delay the mining lease stage of the Con
cession Agreement being reached.
I remain, &c.,
Frank Holmes,
Chief Representative, .
The Bahrein Petroleum Company, Limited.
Copy op a Letter dated the 22nd Dhil Hajj, 1350, from His Excellency Shaikh
Hamad bin Isa al Khalifa to 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. , Bahrein.
After Compliments,
1. With reference to your inquiry about our wish in regard to the matters
mentioned by Major Holmes, representative of the Bahrein Petroleum Company, in
his two letters to you dated 22nd April, 1932. We have received copies of these two
letters and after considering the matter we inform you of our opinion.
2. With regard to the extension of the prospecting licence for two years after
the completion of the present time, which is in about seven months, we wish to see
some result from the work of the Oil Company because they have now held the Con
cession for many years. We think, therefore, that an extension of two years is very
long but we are willing to grant an extension of one year.
3. With regard to altering Clause IX of the prospecting licence according to the
letter of Major Holmes. As this alteration is not injurious to us, we are willing to
allow this alteration, accordingly the Company will be able to obtain any amount more
than 100 tons of oil but they must pay the royalty on every ton after the first 100 tons.
4. With reference to these two matters which we mention above, as you are
aware we have small knowledge of matters concerning oil, so we request that you will
ask the Honourable 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. to obtain on our behalf
the advice of the Colonial Office in London in these two matters. We would be obliged
if the matter might be settled as soon as possible because as you are aware we wish
very much to see some financial result from the Oil Company.
(Seal of H.E. Shaikh Hamad.)