Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎42v] (86/284)

18135/33 [No. 101].
No. 7 7. F
NOTE OF AN INTERVIEW HELD AT THE .
8 th MAY, 1933, BETWEEN ME. LOMBARDI Ai 1 rM rTTTT) VND MR
OF THE BAHREIN PETROLEUM COLONIAL
A. C. 0. PARKINSON AND MR. K. W. BLAXTER, OF THE COLUiN iaij
OFFICE.
Mr. Lombardi and Mr. Ballantyne called this morning, and we y
Mr. Parkinson, Mr. Blaxter also being present, Tw a ; QT , Gnlf savins
Mr. Lombardi gave a short account of his recent v^t to t e '
that he had considerable discussion with the Shaikh of lem, tress ' UDOI1
Mr. Belgrave, and had also seen the Shaikh of Kuwait. e a J c , s -d i • p etro _
the friendly relations which, he said, existed between the 0 ie (V anv wei . e
leum Company in Bahrein and the local population. He said ia llh ' P
being particularly careful to select a good type of individual foi iese p ,
thought that the good relations to which he had referred were due ^o ^ us
2. Mr. Lombardi then raised the question of the application w ic i e
Petroleum Company had made for an extension of their prospecting icence, ox as an
alternative for an increase of the area which they may select, m letuin oi cer am
increased payments to the Shaikh. He stated that to his mind the Company were
entitled to a further year's extension; it was customary in concessions o t is m °
allow for the maximum extension of the prospecting licence it it could Je s lown a
the extensions asked for were necessary. In the present instance, he relt that the
Company had made out a clear case for this necessity. It was clear to him a ter
making a survey of the w T hole position in Bahrein that further test dulling was
required; they would have to test in all six or seven wells before they could decide
either the depth or the extent of the area for which they would seek a mining lease.
3. Mr. Parkinson stated that the Company's application was .at present under
active consideration; he could not say more at the moment, except that it was not
likely that the Shaikh would agree to an extension of the licence without a quid •pro
quo. As to the Company being entitled to an extension of their prospecting licence,
he said that he did not admit that this was the position, but that the point would be
looked into carefully. When the position had been further examined it would be
necessary for a reference to be made back to the Bahrein Government. After that
had been done, a comprehensive, letter would be addressed to Mr. Ballantyne. Mr.
Lombardi said that if His Majesty's Government required further information as to
the Company having pursued their programme with due diligence and efficiency,
which was a material point in respect of their application for an extension of their
prospecting licence, he hoped that the Company would be told as soon as possible
what further details were required, in order that the data could be prepared without
delay. As regards a quid pro quo, Mr. Lombardi indicated that the second alternative
was designed to give the Shaikh and his government immediate assistance; the impli
cation was that the Company would not be disposed to consider anything of that nature
merely for an extension of the licence.
4. Mr. Parkinson mentioned also that when the time came to address a letter
to Mr. Ballantyne, this would include a statement as to certain amendments in the
mining lease which His Majesty's Government desired to see introduced. Mr.
Lombardi and Mr. Ballantyne inquired whether it was proposed to link up these
requirements with the Company's application for an extension of their prospecting
licence. Mr. Parkinson replied that he could not say anything definite at the moment
as to the manner in which the matter would be raised with the Companv. The amend
ments which His Majesty's Government had in mind were for the most part of a
technical nature, and it was hoped that they would be acceptable to the Companv.
Mr. Ballantyne reiterated that he hoped that the question of amendments of the
mining lease would be kept separate from the Companv's present application
5. The provisions of Condition " D " of the Schedule to the Agreement of the
12th June, 1930, were then discussed, Mr. Parkinson asking what the Companv 's
views were as to the fulfilment of this condition. He mentioned that though there
was in the past a scarcity of British drillers, he understood that there was now avail
able from the 'Iraq Petroleum Company and the Anglo-Persian Oil Companv a number
of trained drillers of British nationality with experience in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. and
'Iraq who might be employed in the future by the Bahrein Petroleum Commn -
Mr, Lombardi stated that the Company did not in fact contemplate the appointment