Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎62v] (126/284)

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circumstances should permit should at all times be British subjects or subjects of tie
Shaikh of Bahrein. (See enclosure in No. 6 ih Middle Last No. o2.)
3. The American view can best be shown by the following extract from a lecord
bf a meeting held on the 19th of July, 1929, between representatives of the Syndicate
and the Colonial Office
" Both Mr. Janson and Major Holmes considered that it would be difficult,
if, indeed, not impossible, to secure the assent of their American friends to the
suggestion that the local General Manager and the whole of the local staff, with
certain exceptions to be agreed upon between the parties, should be at all times
British subjects or subjects of the Shaikh of Bahrein. American oil magnates
had a very low opinion of British directing staff, and were likely to desire to
employ American subjects as their local technical staff, their American friends
attached such importance to the retention in the hands of American engineers
of the control of the technical work to be carried out in Bahrein that, although
they might be prepared to agree to the appointment of a British subject as their
local General Manager, they were unlikely to agree that more than a small propor
tion of their local technical staff should be British subjects. Insistence on the
acceptance of the condition proposed might result in the refusal of their American
friends to participate in the operation of their Concession, with the result that the
oil resources of Bahrein would not at present be exploited. After some discussion
the representatives of the Syndicate agreed that if the condition in question could
be amended by the omission of the words " the whole of the local staff, with
certain exceptions to be agreed upon between the parties," and the insertion in
lieu of the words " as many of the local staff as is consistent with the efficient
carrying out of the undertaking," they would do their utmost to induce their
American friends to accept the conditions proposed. Sir John Shuckburgh agreed
to the amendment suggested." (See No. 29 in Middle East No. 32.) .
4. The attitude of His Majesty's Government is set out in paragraph 2 of
No. 42 in Middle East No. 32, which reads as follows :—
" I am to explain that His Majesty's Government in the United Kingdom
attach great importance to the acceptance of these conditions and are not prepared
to agree to their modification. The third of these conditions, which is essen
tial to the harmonious working of the enterprise, is imposed as much in the
interests of the operating Company as of His Majesty's Government. In the
opinion of His Majesty's Government it is essential that, if the oil resources of
Bahrein are to be profitably exploited, the relations between the Company engaged
in such exploitation and the local authorities and population in Bahrein should be
maintained upon a satisfactory and friendly basis. To secure this end, it is abso
lutely necessary, in the view of His Majesty's Government, that there should be
no doubt in the minds of such local authorities and population as to who is the
Chief Local Eepresentative of the Company and that such local representative
should be not only persona grata with His Majesty's Government and with the
local authorities in Bahrein, but also familiar with the conditions prevailing in
the Arabian) littoral of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. . Moreover, in view of the special treaty
relations existing between His Majesty's Government and the Shaikh of Bahrein
it is highly desirable that the principal representative of the Company should be
a British subject."
It had already been explained to the Syndicate's representatives that it was a
matter of indifference to His Majesty's Government whether or not the Company's
local representative controlled the technical operations of the Company.
5. The Americans maintained their objections to the principle that the Company's
local representative should be British, and a compromise was reached that while the
condition should not contain this stipulation, it should provide that Major Holmes
should hold the post for the first five years. The Americans also objected to being
tied to Major Holmes for a period of five years regardless of all possible contingencies,
and to meet this objection provisos were attached to Major Holmes's appointment
to give the Company latitude (a) to choose someone else who should be persona grata
with His Majesty's Government if Major Holmes should resign or prove unsuitable
before the expiry of five' years, and (h) to take a reasonable time to replace him bv a
suitable successor. In pressing their point the Americans emphasized the fact that
they were fully convinced that Major Holmes was altogether competent to fill the
post on account of his proved abilities.