Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎94v] (190/284)

162
in the case of the Bahrein oil concession, which the Embassy discussed with
the Foreign Office in 1929 (reference : Foreign Office note No. E 2521/281/.)! ot
29th May, 1929), are acceptable in the case of the Kuwait concession. 1 undei-
stand the Bahrein concession was assigned to the Bahrein Petroleum C ompany,
the Canadian subsidiary of the Standard Oil Company of California In this
connexion a statement to me by the Syndicate representative may be ot interest
to you :—
" ' The agreement entered into between the Eastern and General
Syndicate, Limited, with the Eastern Gulf Oil Company stipulates that the
nominee of the Eastern Gulf Oil Company will be a Canadian or English
corporation, at the election of the Eastern Gulf Oil Company. A copy o
this agreement has been in the possession of the Colonial Office (m its
consideration of the Kuwait oil concession) since 28th December, 1928, the
same having been furnished to the Colonial Office by the Eastern and General
Syndicate, Limited.'
" As stated to you the other day, the discussions have been so long delayed
that I should be most appreciative of an early word of reply.
Yours sincerely,
(Signed) Charles G. Dawes."
In conclusion, it may be realized from the above facts that tor more than fout
vears American interests, in agreement with the Syndicate, have been seeking to
obtain an oil concession in Kuwait, and for approximately the last year of that time
representations have been made by the American Embassy, seeking for its nationas
in this matter such opportunities as British subjects receive in the I nited States. In
this connexion, the American Embassy pointed out only recently that opportunity to
American interests seems to be obstructed by the arbitrary decision of His Majesty s
Government, as set forth in the Foreign Office note to this Embassy on 16th September,
containing a refusal to inform the Eastern and General Syndicate at this time whether
that portion of the draft concession submitted by it (namely, Clause 8) was satisfactory
from the point of view of safeguarding the interests of His Majesty's Government,
and, if not, to state wherein the said conditions failed to satisfy m safeguarding the
interests of His Majesty's Government. . _ .
The Department of State has therefore instructed the American Embassy to review
the facts with the Foreign Office and to request that this matter, which has been
delaved for over a period of four years, may be expedited by the British authorities
to the end that such action may be taken as will permit the Shaikh now to come to
a decision.
C. 98026/32 [No. 122]. ^ ^
PETROLEUM DEPARTMENT to FOREIGN OFFICE.
(Copy received in Colonial Office 8th November, 19o2.)
g iR 5th November, 1932.
I am directed by the Secretary for Mines to refer to your letter of ord
November, # enclosing copy of a memorandum presented by the United States Ambas
sador on 2nd November, relative to the negotiations which have been taking place
for the grant of oil concessions in Kuwait, and to offer the following observations
for the information of Secretary Sir John Simon.
In view of the statements contained in the above memorandum, the Secretary
for Mines considers it desirable to place on record the facts regarding the negotiations,
as disclosed by an examination of the earlier correspondence and despatches from
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. .
(1) The Anglo-Persian Oil Company were the first Company to take an active
interest in the oil prospects of Kuwait, and as long ago as 1917 they carried out a
preliminary examination in Kuwait and Bahrein and applied formally for the grant of
petroleum rights in the territories of the Shaikhs of Kuwait and Bahrein. For various
reasons these negotiations were not brought to a satisfactory conclusion, and the Anglo
* No. 172.