Concessions in Bahrein [Bahrain], Kuwait, &c: correspondence, 1932-Jul 1933 (Colonial Office Secret Print, Middle East No.49) [‎129v] (260/284)

232
18126/83 [No. 76].
No. 259.
(Confidential.)
(Extract.)
FINAL RECORD OF A MEETING (ADJOURNED FROM THE 26 th APRIL) HELD
AT THE COLONIAL OFFICE ON THE 3 rd OF MAY, 1933, TO DISCUSS
VARIOUS QUESTIONS RELATING TO OIL IN T THE PERSIAN GULF The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
Present:—
Mr. Parkinson "j
Mr. Blaxter >Colonial Office.
Mr. James j
Mr. Rendel \ ^
Mr. Johnstone f rorei 8 n 0ffice -
Mr. Laithwaite , 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. .
Captain Moore , Admiralty.
Mr. Starling , Petroleum Department.
Lieutenant-Colonel Fowle , 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. .
Captain Prior , Indian Political Department (lately
Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. at Bahrein).
I. Kuwait.
1. Mr. Parkinson called attention to the latest telegram from Kuwait report
ing that, on being consulted by the Shaikh regarding the last offer by the Anglo-
Persian Oil Company, Major Holmes had immediately offered more favourable terms,
on the condition that he should be allowed to submit a new draft concession allotting
the northern part of Kuwait to the British, and the southern part to the Americans.
2. General discussion regarding the intention behind this new proposal showed
that there is reason to believe that Major Holmes may have discovered, as a result
of his explorations for water, that one area has more oil-bearing possibilities than the
other, and that it is not out of the question that the part to be allotted to the
British might be comparatively unremunerative. From information previously received
from the Shaikh it is understood that the British area would comprise 1,200 square
miles and the American area 400 square miles, and that the initial payment in the
case of each separate concession would be Rs. 45,000.
3. Mr. Parkinson asked whether it would be practicable or advisable for His
Majesty's Government to intervene at once, on the ground that the new proposal to
divide Kuwait territory was unacceptable.
4. Mr. Rendel was inclined to think that to take this line might place us in a
somewhat invidious position. Moreover, he saw some difficulty in intervening at this
stage when we were unaware of the exact nature of the proposal, and had^not vet
learned the reactions of the Anglo-Persian Oil Cbmpany. In any case it would seen
desn-aWe, before tendering further advice to the Shaikh, to wait until the respective
otters of the competing Companies might be regarded as more or less final
_ 5 In reply to a question Mr. Starling said it might be possible, on general
principles, to take the Ime that Kuwait was too small comfortably to accommodate two
oil concerns. It must, however, be home in mind that recent indications suggested
that British interests might wish to acquire a footing in Bahrein. Bahrein was con
siderably smaller than Kuwait and we should, therefore, be well advised to watch
events m Bahrein before vetoing the new proposal merelv on the ground of the small-
ness of Kuwait Subject, however, to developments in Bahrein, he saw no reason why
of juration. rnm n0t Pt SUCh an at, itude With a certain measure
6. The suggestion was made that the Shaikh should be told that he must accent
0 L t, 18 ! ]e « y S G ° v ? mment on technical matters. It was pointed out
that the Shaikh had in effect, flatly contradicted the advice tendered bv His Maiestv's
Government on the technical aspects of the two original draft concessions by Lsertmg
that in his opinion, the Syndicate's offer, as it stood, was the better ^
7. After some discussion it was agreed that it would not be within the term^ of
our pledge to insist on the Shaikh accepting our advice, even in technicll matter/
We could only give him our advice and warn him that by disregarding Uhrwould
% "I'Tf ts - l "™™ant-Colon e l Powi.e expressed the r -
that the Shaikh would probably accept advice so tendered. P e. en the viev