Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎52v] (106/284)

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letter because some of the points mentioned in it did not occur. We did not see the
letter before it was sent to you and in it there are points which were not discussed at
all between us and Major Holmes.
Major Holmes says that he visited us at Sakkir in the presence of our son Shaikh
Sulman. He visited us twice at Sakkir and both times Shaikh Sulman was present.
We 'did not request Major Holmes to visit us, but he visited us of his own accord.
Major Holmes mentions in his letter that we decided, during one of his two visits to
us at Sakkir, to give to his Company the additional area, according to the conditions
mentioned in his letter. Yes, it is true that conversation took place about the additional
area at Sakkir but we did not decide to give this Company the additional area, either
at Sakkir or at any other place.
Major Holmes infers that it was we who suggested the conditions mentioned in his
letter, but in reality these conditions were suggested by Major Holmes himself, not by
us, but during the conversation we made certain comments on his conditions and we
said to him that the conditions and the sums he offered to us were not enough and we
demanded more from him. On one occasion we asked of Major Holmes double the
sum which he offered to us. Another time a discussion took place that the Company
should pay to us one-third of the royalty and should pay to our government the
remaining two-thirds, but the Major does not mention this point in his letter at all.
Moreover, Major Holmes asserts that we agreed to some conditions which were never
mentioned to us. How is it reasonable that we should have agreed to something which
we never knew about? He says that the Company has the right, according to one of
the conditions which Major Holmes mentioned in his letter to dig for oil in all the
territorial waters. In truth, there was no mention of territorial waters in our conver
sations, Our conversation referred to the additional area of Bahrein Island only. It
now appears that the additional area does not amount to more than 38,000 acres,
including towns, cemeteries, and gardens.
Also, Major Holmes says that if the world market of oil deteriorates the Company
might cease paying to us the instalments from the future profits.
This point, too, was not mentioned during our conversations. Both these matters
are very important and require special consideration. With regard to the territorial
waters we cannot grant the Company any rights before making conditions to protect
the rights of our harbours and ports. Also we shall have to make conditions concerning
the towns, cemeteries, and gardens which are included in the remaining 38,000 acres.
And now we inform Your Excellency that we wish to obtain the largest possible
amount from the Company. Our urgent need of money is not hidden from you. We
are willing to negotiate with Major Holmes's Company about the additional area pro
vided that the Company pays to us an adequate sum. It is impossible for us to know
exactly the real value of the additional area. In this matter we resemble a diver who
has in his hands pearls whose value he does not know but there are experts from whom
he can ascertain the worth of his pearls. Perhaps there are experts in London from
whom we can know the real value of the additional area. In this matter we ask help
and advice of the British Government. As far as we are concerned this matter is not
a political one but entirely a commercial matter, so we are asking the advice of the
Government about a commercial matter. We cannot afford to pay expenses of experts
in this matter, but perhaps if the circumstances are explained to them they will be able
to advise us on the value of the additional area,
If the offer of the Company is not suitable to us we will offer the extra area to the
Anglo-Persian Oil Company or the 'Iraq Petroleum Company, but in truth we should
prefer the additional area to be the lot of the Bahrein Petroleum Company as they
have some claim to pre-emption provided that they pay a suitable amount and accept
our conditions.
We desire to complete the matter altogether as soon as possible. We have waited
many years without getting any result from the matter of the oil and, as we have
constantly informed you, our financial need now is greater than it has ever been
before We are afraid that our Government will not be able to continue its activity
unless its revenue increases and the only hope of increasing the revenue is from oil.
Finally, please accept our sincere respect.
Hamad bin Isa al Khalifah.