Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎9r] (17/1153)

5
currency, or in pounds sterling (with the exception of the first payment provided
for m article 18 hereof), shall be based on the average of the rate of exchange as
computed over a period of three months immediately preceding the due date of
the payment.
Article 18.
^ All payments provided in this contract to be made to the Government may be
made by tendering such payments directly to the Government, or by depositing
the amount due to the credit of the Government in some bank which the Govern
ment designates in writing and which the Government may change from time
^ gi v i n g written notice to the Company long enough in advance so that
the Company will have sufficient time to make future payments to the new bank.
It is agreed that the Government will designate such bank in Saudi Arabia, or
in the United States of America, or in England, or in Holland, but that no bank
m Saudi Arabia will be so designated unless such bank has a correspondent in
United States of America, England or Holland through which bank transfers
of money to Saudi Arabia may be made. Once the Company has made the proper
payment to the Government, or has deposited the proper sum in any such bank,
or has paid the sum to such correspondent for transfer to a bank in Saudi
Arabia, the Company shall be free of all further responsibility in connexion with
the payment.
It is agreed, however, that the first payment of £35,000 gold, or its
equivalent (comprising the initial loan and the first annual rental), shall
be made, within fifteen days after the effective date of this agreement, to a
correspondent, in New York or in London, of Netherlands Trading Society
(Nederlandsche Handel-Maatschappij) at Jedda, Saudi Arabia, to be trans
mitted without delay; and at the expense of the Company, to said society and to
be delivered to the Government upon obtaining a proper receipt from the Govern
ment for such payment. If this first payment is not made in gold, it will be made
in pounds sterling at the current rate of exchange at the time the Company makes
the payment to such correspondent.
Article 19.
As soon as practicable after the date of discovery of oil in commercial
quantities, the Company shall select some point within Saudi Arabia for the
erection of a plant for manufacturing sufficient gasoline and kerosene to meet
the ordinary requirements of the Government, providing, of course, that the
character of the crude oil found will permit of the manufacture of such products
on a commercial basis by the use of ordinary refining methods, and provided,
further, that the amount of oil developed is sufficient for the purpose. It is
understood that the ordinary requirements of the Government shall not include
resale inside or outside of the country. Upon the completion of the necessary
preliminary arrangements, and as soon as the Company has obtained the Govern
ment’s consent to the proposed location, the Company shall proceed with the
erection of such plant. During each year following the date of completion of
this plant the Company shall offer free to the Government in bulk, 200,000
American gallons of gasoline and 100,000 American gallons of kerosene’, it being-
understood that the facilities provided by the Government for accepting these
deliveries shall not impede or endanger the Company’s operations.
Article 20.
The Company, at its own expense, will employ the necessary number of
guards and guides to protect its representatives, its camps and installations.
The Government promises to co-operate fully in supplying the best soldiers and
men available for this responsibility, and in furnishing every reasonable protec
tion, at rates not exceeding those customarily paid by the Government or others
for similar services, it being understood that the expense for such services shall
he paid by the Company through the Government.
Article 21.
In return for the obligations assumed by the Company under this contract,
and for the payments required from the Company hereunder, the Company and
enterprise shall be exempt from all direct and indirect taxes, imposts, charges,
fees and duties (including, of course, import and export duties), it being under
stood that this privilege shall not extend to the sale of products within the