Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎55v] (112/284)

84
communication has been received from another oil interest expressing a wish to
negotiate for the territory remaining after the Bahrein Petroleum Company, Limited,
have chosen their 100,000 acres.
1 have, &c..
G. Loch,
Lieutenant-Colonel,
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.
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. ,
Bushire.
Copy of a letter dated the 21st June, 1933, from Mr. A. S. Sampson, Bahrein, 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, with copy to the General Manager, Messrs. Anglo-Persian
Oil Company, Limited, Ahadan.
1 have the honour to refer to our conversation regarding the development for oil
of those areas in the territories of Bahrein which are not yet allocated for such develop
ment, and confirm that my Company, Messrs. Anglo-Persian Oil Company, Limited,
would like to come to an arrangement with His Excellency the Shaikh of Bahrein
whereby the Company shall have the sole right over a period for negotiating for an
agreement for the development of such areas.
I shall be obliged if you will let me have your reply in due course.
Enclosure 2 in No. 106,
(Confidential.)
(No. C/224/10-1.)
Political Agency An office of the East India Company and, later, of the British Raj, headed by an agent. , Bahrein, 24th June, 1933.
In continuation of my telegram No. C/222 dated the 23rd June, 1933, I have
the honour to enclose a copy of a letter dated the 15th June, 1933, from Major Frank
Holmes, Chief Local Representative of the Bahrein Petroleum Company, Limited,
regarding the affairs of the Bahrein Petroleum Company, Limited, in Bahrein.
2. In this letter Major Holmes maintains the fiction of the offer of His Excellency
Shaikh Hamad bin 'Isa AI Khalifah, and indeed, elaborates it, as for example in the
first paragraph where he writes "... and tentatively agreed by me with His Excel
lency the Shaikh . .
3. There has been a change in the personal payments for His Excellency Shaikh
Hamad m place of a payment of Rs. 40,000/- down and Rs. 3,000/- a month for
20 months it is proposed to offer him Rs. 50,000/- down and Rs. 2,500/- a month for
20 months : the total in each case being Rs. 100,000/-.
ut mam change is that it is proposed to recover the twenty monthly
payments of Rs. 10,000/- to the Bahrein Government (which were to have been a
payment, not a loan) from the loyalties on a scale to be agreed on between the parties.
5. The recovery of the payments to the Bahrein Government renders the proposal
definitely less favourable than it was, but a cunning endeavour has been made to render
the Company's offer attractive to His Excellency Shaikh Hamad by increasing the initial
lump sum payment to him personally from Rs. 40,000/- to Rs. 50,000/-.
6. There is also a modification of the point at which the recovery of a loan from
the royalties may be started. In Major Holmes's letter of the 15th May it was stated
that the recovery might be made from :—
. Royalties which may become due—in excess of Rupees Indian silver coin also widely used in the Persian Gulf. eicrhty
thousand (80,000) in any calendar year." b
• • • Royalties in Oil—which may become due—in excess of Rupees Indian silver coin also widely used in the Persian Gulf.
sixty thousand (60,000) in any calendar year, but the Company shall not be per
mitted to recover the above-mentioned loan from royalties that may become due
on oil at a higher rate than twenty-five per cent. (25 per cent.) of anv excess over
Rupees Indian silver coin also widely used in the Persian Gulf. sixty thousand (60,000) in any calendar year."
7. I recommend that I should be authorized to send a copy of Major Holmes's
letter to the Bahrein Government and to ask for their views. It is desirable that we
should avoid any delay which might suggest that time is being given to the Anglo-
Persian Oil Company, Limited.