Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎93v] (188/284)

160
Kuwait, which was left at this Department by the United States Ambassador on the
2nd November. , i ,
2. In doing so, Mr. Mellon recalled that he had been informed on the last occa
sion on which he had mentioned this matter that steps would be taken to expedite
the examination of the draft concessions submitted by the Eastern and (jeneral
Syndicate and the Anglo-Persian Oil Company. Sir John Simon considers it most
unfortunate that it was impossible to inform Mr. Mellon that any progress had been
made in the matter. It was in fact clear that an impression of deliberate dilatormess
and indeed of duplicity on the part of His Majesty's Government had been created,
since it was also impossible to give Mr. Mellon any adequate explanation of the delay
in completing the comparison of the two draft concessions, both of vJiich ha\e now
been in the possession of His Majesty's Government for a considerable time.
3. The Secretary for Mines will no doubt appreciate that the unfortunate atmo
sphere created at such an interview may well have important repercussions on questions
of major political importance under discussion with the Ambassador. Sir John Simon
trusts that the examination bv the Petroleum Department of the two draft concessions
will be completed by the end of this week, in order that a similarly embarrassing
position may not arise in this matter when-Mr. Mellon next reverts to the subject, as
he may well do in the immediate future.
4. Copies of this letter are being sent to the Colonial Office, India Otiice, ana
the Admiralty.
I am, &c.,
G. W. RENDEL.
Enclosure in No. 172.
Memorandum of Conversation.
In a note from the British Foreign Secretary, dated 9th Apiil, 1932 (No r
E 1733/121/91), regarding an application of the Eastern and General Syndicate,
Limited, for an oil concession in Kuwait, reference is made to the extended period of
time that oil companies have been interested in oil lands in Kuwait.
The Eastern and General Syndicate initiated and carried on negotiations with
the Shaikh of Kuwait for an oil concession in his Principality with the knowledge and
approval of the British Government, but it was not until after American interests
became associated in the venture with the Syndicate in 1927 that the Biitish Govern
ment required (in 1928) the inclusion in the concession agreement of a " nationality
clause," which clause would have the effect of excluding any but purely British
interests from exploiting such a concession. • . \ •
Thus the Syndicate for years prior to 1927 and in agreement with American
interests since 1927 has continuously endeavoured to obtain a concession m Kuwait
verv similar in principle to a concession which, with the knowledge of the Bntis i
Foreign Office, had been granted to the Syndicate in the Bahrein Islands. . f
Last December American interest in the Kuwait concession formed 0 t
representations by the American Ambassador to the British Secretary of State or
Foreign Affairs. In referring to these representations, the Foreign Office note ot
9th April, mentioned above, stated that "His Majesty's Government for their par^
are prepared to agree to the omission from any oil concession, which the tehaK
mav be prepared to grant, of a clause confining it to British interests .....
On 6th September, 1932, however, the American Embassy, m a note to t e
Foreign Office urged that early appropriate steps might be taken that this statement
become effective! and that the American interests involved might be placed m as
favourable a position as a British oil company m having its application consld | re ^^
the Shaikh of Kuwait. In acknowledging this note of 6th September a Foreign
Office note in reply stated : " His Majesty's Government decided thev could not advise
the Shaikh to give preferential treatment to the Eastern and Geneial o\ndica e. _
the opinion of "the Department of State, some misunderstanding may exist m the mmd
of the British Government in this connexion, since no preferential treatment has bee
asked for American interests, nor has any been granted^ , ^ .. n - T
It mav be recalled that the American Ambassador, m discussing the Kuwa
Concession with Sir John Simon last December, pointed ont that the Eastern and
General Svndicate had initiated and carried on its negotiations with the Shaikh witn
the knowledge and approval of the British Government; that the Syndicate had ottered
the Anglo-Persian Oil Company the opportunity, over six years ago, to interest itselt
in the Kuwait Oil Concession, which opportunity that company declined; that acco