Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎34r] (69/284)

41
2. It is considered advisable that the new Supplementary Agreement should
refer to the prospecting licence only, since it is probable that further alterations will
be suggested in the Mining Lease, and it would therefore appear desirable that the
reference to the third Schedule, which appears in paragraph 3, should be deleted.
With regard to Article II it should be noted that the Article IX to which reference is
made is in the second Schedule to the Agreement and not in the main Agreement, and
accordingly the words " the second Schedule to " should be inserted after the word
" of " in line 2 of that Clause.
3. If the Company agree to the amendment of the draft Supplementary Agree
ment as indicated above, namely, by insertion of the words " the second Schedule
to " after the word " of " in line 2 of Clause 2, and the omission of the words
and also in Schedule 3 thereof immediately after Article VIII " in lines 3 to 5
of Clause 3, there is no reason why the Company should not proceed forthwith to
conclude the Agreement with the Shaikh, and the Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. will
be informed accordingly.
4. I am also to suggest that it would be convenient to number the two new
Articles IXA and IXB.
5. As regards the Mining Lease, if and when the time comes to complete it,
it is probable that certain modifications may be considered advisable, but it is not
thought that any of the alterations which His Majesty's Government would wish to
see embodied in the lease will be of a character which the Company is likely to find
any difficulty in accepting, and for the present it seems clearly preferable to conclude
the Supplementary Agreement with regard to the prospecting licence forthwith
in order that the Company's operations may proceed without undue delay. The
question of the alterations which will be suggested in the Mining Lease will be
taken up with you at an early date.
6. On receipt of information that the modifications in the Supplementary Agree
ment set out above are acceptable to the Company, the necessary communication
will be addressed to the Resident in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
I am, &c.,
J. E. W. FLOOD.
0. 98035/32 [No. 174].
No. 60.
MR. J. E. W. FLOOD ( Colonial Office)
to
MR. F. C. STARLING (Petroleum Department).
Dear Starling , Downing Street, 29th December, 1932.
Many thanks for your letter of the 23rd of December,* and for the official
lettert about Bahrein oil which it covered. The alterations in the draft Agreement
seemed trifling, so I sent off an official letterj; to Ballantyne, of which I enclose a
copy. You will note that I have thought it expedient to add a paragraph warning
them that there might be modifications in the Mining Lease. This excited Ballantyne,
who came round to see me in a state of panic. He said that the alterations proposed
in the draft Agreement were quite reasonable and would be accepted at once, but
with regard to possible alterations in the Mining Lease, he would not admit that the
Company ought to be placed in the position of having various conditions hurled at
them which they could be told to take or to leave. I said that, so far as I could see,
it would not be practical politics to hold a pistol at their heads, and that the alterations,
which we did not think would be of a very serious character, would obviously have
to form a matter of agreement between His Majesty's Government and the Company.
Thia appeared to satisfy him and he will write in any say that he understands accord
ingly. I mentioned to him points (a), {h) and (d) in paragraph 4 of your official
letter, but did not mention (c) and (e), ( which can be dealt with later on. I told him
fchat there would be correspondence, but I couldn't be quite sure^what form it would
lake. If they agree to the modifications proposed, as they will do, then I hope
f No. 57.
J No. 59.