Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎100v] (202/284)

174
4. My Lords also consider it desirable to add that should an opportunity arise
to tender his advice to the Shaikh 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 addition to explaining
any doubtful points in the Petroleum Department's analysis, might well reter also to
the following points :—
(i) That as nothing is yet known as to whether the field will be a cheap or an
expensive one to work and as at present there is a considerable world over
production of oil, there may well be a strong inducement to limit produc
tion from the Kuwait field rather than to increase it. In these circum
stances the " bird in the hand " of the Anglo-Persian Oil Company s
offer seems to be worth considerably more than the two in the bush
of the Eastern and General Syndicate's draft concession.
(ii) The wide experience of the Anglo-Persian Oil C bmpany m this area
enables them to offer a fair economic royalty, combined with a higher
minimum payment. The Eastern and General Syndicate, on the other
hand, being almost entirely without local experience, offer a higher royalty
and a lower minimum payment but would seem to be themselves doubtful
whether the royalty which they offer is economically possible since their
draft concession provides for a complete cessation of work for any time
up to two years during which no payments would accrue to the Shaikh.
5. I am to suggest that the whole matter should now be considered by the
Middle East Official Sub-Committee of the Committee of Imperial Defence.
6. Copies of this letter have been sent to Foreign Office, India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. and
Petroleum Department.
I am, &c.,
J. S. BARNES.
O. 98026/32 [No. 138 A].
No. 181.
SIR R. VANSITTART (Foreign Office)
to
THE HONOURABLE ANDREW W. MELLON (The United States Ambassador).
(Copy received in Colonial Office, 26th November, 1932.)
Mt dear Ambassador , Foreign Office, S.W.I, 11th November, 1932.
I am glad to be able to let you know that the Department concerned have
now completed the comparative examination of the draft concessions for oil exploita
tion in Kuwait, submitted to the Shaikh by the Eastern and General Syndicate and
by the Anglo-Persian Oil Company respectively, and that the document embodying
the result of this examination is already on its way to the British authorities in the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
On its receipt by them it will be communicated to the Shaikh of Kuwait for his
consideration.
Meanwhile I am arranging to have a detailed reply prepared to the various other
points raised in the memorandum which you left with me on 2nd November.
R. VANSITTART.
C. 98026/32 [No. 138 B].
No. 182.
SIR R. VANSITTART (Foreign Office)
to
THE HONOURABLE ANDREW W. MELLON (The United States Ambassador).
(Copy received in Colonial Office, 26th November, 1932.)
My dear Ambassador , Foreign Office, S.W.I, 23rd November, 1932.
Since I wrote to you on 11th November* about Kuwait oil, I have been con
sidering the question, on which, as you know, I was not in possession of full details
* No. 181.