Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎101r] (203/284)

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at the time of our interview. I have, therefore, come to it with a fresh mind, and
one or two points have at once struck me.
2. The memorandum which you left with me on 2nd November might be inter
preted as implying that His Majesty's Government have been purposely procrastinat
ing in regard to the participation of American interests in the development of Kuwait
oil for over four years. But, apart from the fact that the Anglo-Persian Oil Company
were in the field in Kuwait long before the British concern which is now acting for
the United States interests, I wish to make it clear that the decision of His Majesty's
Government (which was communicated to the Eastern and General Syndicate in
November, 1928) that any oil concession which might be granted must contain a clause
which would confine it to British interests, was taken on grounds of general policy
and before we had heard anything of American participation in the matter. The
decision was in fact taken in pursuance of the then existing general policy of His
Majesty's Government which had been in force for many years, and also because
the Shaikh of Kuwait, whose interests they are, of course, under an obligation to
protect, expressed himself as unwilling to grant a concession to any company not
under British control. It was not until 19th December, 1928, that the Syndicate
informed the Colonial Office of their agreement with the Eastern Gulf Oil Company,
by which the concession, if obtained, was to be transferred to United States interests.
His Majesty's Government did not, however, feel able to change their decision until,
in December, 1931, your Embassy first made representations in the matter. Then
His Majesty's Government, in their desire to go as far as they could to meet the
United States Government, reconsidered the question and decided after much
deliberation that, while they could not commit the Shaikh of Kuwait, they would,
for their part, not insist in this case that any concession granted must contain a clause
confining it to British interests, if the Shaikh for his part was willing to grant a con
cession without such a clause, and we so informed your Embassy in April.
3. Your memorandum also reverts to the representations made in Atherton s
official note No. 231 of the 6th September,* to the effect that the American interests
concerned are labouring under a disadvantage as compared with the Anglo-Persian
Oil Company owing to their ignorance of the provisos which His Majesty's Govern
ment would require to see embodied in the concessions granted, in order to safe
guard their own interests. But surely these representations were satisfactorily
answered in Sir John Simon s reply, of the 16th September.! As I understand
it, the " safeguards " are a matter for discussion ojter the Shaikh of Kuwait has
made his decision from the point of view of what is to the best advantage of his
own State. (I am advised that though no final decision has been taken on the point
it is not unlikely that at least some of them would equally have to be embodied in
any concession which might be granted to a purely British Oil Company wishing itself
to operate in Kuwait). As these safeguards are not primarily the concern of the
Shaikh, and will not affect the comparison of the two draft concessions on their
merits, they do not in our view affect the matter at the present stage.
4. As you know, that stage is that the latest draft concession submitted by the
Eastern and General Syndicate and the draft submitted by the Anglo-Persian Oil Com
pany have been compared in London by the department concerned on the technical
side in order that the Shaikh, who is naturally not well versed in such technical
matters, may understand what in fact will be the effect of the main provisions of each
offer (e g., the financial side, conditions of working the oil, &c., &c.). The resulting
document is now on its way to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , and we must await the result of
the Shaikh's examination.
5. The two offers made for the concession are thus being treated concurrently,
and that, I feel sure you will appreciate, was the only correct course for His Majesty's
Government to take in order to secure the most acceptable terms for the Shaikh. If
onlv in his interest. His Majesty's Government were naturally bound, as Sir -John
Simon informed Atherton in his note of the 9th April,| to allow any interested
companv to consider whether they wanted to apply for a concession, and
if so to give them time to do so. The Anglo-Persian Oil Company formally renewed
their efforts to obtain a concession in Kuwait in August, 1931 (not October as men
tioned in your memorandum).
6. 1 regret that there has been delay in the whole matter; I cannot of course
at this stage say exactly when the Shaikh will decide to grant a concession, I do hope,
* No. 165.
f No. 166.
t Enclosure in No. 137.