Coll 30/5(3) 'Bahrein [sic] Residency Monthly Letter - Summary of Events' [‎39r] (77/253)

4
of his own has not supported the complaint made by Petroleum
Concessions Limited. The Bahrain Petroleum Company have also
announced their intention of establishing an electronic survey
aid station on Arabi island without seeking anybody's permis
sion. It will be remembered that they were previously informed
that there was no objection to their erecting a station on
Farsi island provided they obtained the Shaikh of Kuwait's
permission. Arabi is regarded by us as belonging to Kuwait.
Now that a boundary between Abu Dhabi and Dubai has been
fixed, Petroleum Concessions Limited hope to start drilling
in ^the former's territory before the end of the year.
A good deal of surprise has been caused by the resig
nation of Mr. MacPherson, the Vice-President of the Arabian
American Oil Company and his acceptance of employment with
AMINCO, who hold the concession for the Kuwait Neutral Zone.
He has been associated with the Arabian American Oil Company
and its parent companies for some 30 years and for several
years has been their Vice-President in charge of their opera
tions in Saudi Arabia. He expects to arrive in Kuwait on
the 31st July to take over charge of AMINCO's operations in
the Neutral Zone.
The General Manager of the Bahrain Petroleum Company has
informed me that the price of a barrel of crude oil has fallen
from #2.65 to #1.15 since October last. This fall in prices
is naturally seriously affecting the oil companies who are
already in production and must be causing serious alarm to
the companies who have paid such a heavy price for concessions
in the Kuwait - Saudi Neutral Zone.
Bahrain .
I called on the Shaikh with Waight on the 5th June when
we spoke to him about the currency question, and I went to
see him again with the 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. on the 13th June to
discuss his request for an assurance against aggression and
other matters. He is satisfied with the terms of the assurance
which it is proposed to give him, but is unlikely to agree to
give a promise always to employ a British Financial Adviser
as a quid pro quo . He showed himself very strongly opposed
to the appointment of the representative of any foreign coun
try in Bahrain and said that he wished to have dealings with
the British only. He took very unkindly to a suggestion I
made that if any company were willing to build a large modern
hotel here the sale of liquor should be permitted. He has
recently questioned our right to exercise jurisdiction over
the subjects of other Gulf States in Bahrain and demanded
that the new Order-in-Council should be suspended. I told
him that any demand of this nature was not likely to be well
received but if he made a request for the concession to him
of jurisdiction over subjects of other Gulf States in Bahrain
I would be prepared to give it my sympathetic consideration c
It is somewhat unreasonable that backward states like Kuwait
and Qatar should enjoy this jurisdiction while it is denied
to a comparatively well administered state like Bahrain.
The Shaikh's letter to the Foreign Secretary about
Zubarah 18th-century town located 105 km from Doha. is still under consideration at the Foreign Office.
The Shaikh has appointed Ballantyne, the Bahrain Petroleum
Company's representative in London to complete his case and
has now asked that Belgrave, who is on leave in the United
Kingdom should also be heard on the subject.
I have been informed that the visit of the Shaikh's uncle,
Shaikh Muhammad to America cost the Bahrain Petroleum Company
about #50,000 and that his behaviour with the ladies there
and on the journey left much to be desired. His son Shaikh
/Hamad,