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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎97r] (193/1153)

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The record is made up of 1 file (574 folios). It was created in 8 Dec 1923-11 Jul 1945. It was written in English. The original is part of the British Library: 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. Records and Private Papers Documents collected in a private capacity. .

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** THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
CONFIDENTIAL.
^ (15474)
[E 3066/1036/91]
Copy No.
Agreement between the Saudi Arabian Government and the Standard Oil
Company of California, May 27-29, 1933.
ON the 27th May, 1933, an agreement was signed between the Saudi Arabian
Government and the Standard Oil Company of California granting the company
a concession for a defined area in Eastern Saudi Arabia corresponding roughly
with the district of Hasa. An abridged text of this agreement was published at
the time in the Mecca newspaper Umm-al-Qura. What was believed to be a full
text, consisting of thirty-four articles, was obtained in 1935 by 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.
at Koweit (E 3823/173/25 (1935) ).(*)
2. The Saudi Arabian decree announcing the grant of the concession
contained, however, a reference to a “ special agreement,’ which was not
published. It was believed at the time that the “ special agreement ” gave the
California Arabian Standard Oil Company an option on territory in Eastern
Saudi Arabia not already included in the Hasa concession, but details were
lacking.
3. In April 1938 the Saudi Arabian Legation in London communicated
unofficially to the Foreign Office the text of three articles of an agreement relating
to the Standard Oil Company’s concession, together with a copy of a letter dated
the 29th May, 1933, from the company’s representative to the Saudi Arabian
Minister of Finance. This letter refers inter alia to ‘ ‘ the contract signed to-day.”
The three articles and the letter deal with the particular question of the
company’s option rights outside the original concession area.
4. The three articles were numbered 3, 7 and 35. The Saudi Arabian
Legation had no knowledge of the remainder of the agreement from which the
articles are supposed to be taken, and it is, in any case, unlikely that there would
be two complete, but entirely separate, agreements signed at about the same time
and relating to the same subject.
5. The most probable explanation is that on the 29th May, 1933, a modified
version of the original agreement of the 27th May was signed, and that this
modified version consisted of the original agreement with the three extra articles
and the interpretative letter. This is borne out by the fact that if the three
additional articles are inserted in their proper places in the original agreement,
the whole agreement reads consecutively.
6. The agreement has accordingly been reproduced below with the three
articles inserted. The numbering of the other articles has been altered
accordingly, i.e., article 3 in the original becomes article 4, article 5 becomes
article 6, aVticle 6 becomes article 8, and so on as far as article 32, which becomes
article 34, after which the new article 35 supersedes the original article 33.
Finally, article 34 becomes article 36. References to other articles have been
altered to correspond with the new numbering. The letter has been placed at the
end of the agreement.
7. The whole document is confidential, as no part of it has been communi
cated officially to His Majesty’s Government by the Saudi Arabian Government.
Foreign Office, September 22, 1938.
(i) “Further Correspondence respecting Eastern Affairs,” Part XXXVI, Enclosure in No. 68.
10067 [17968]
B
16
(nvy/if)

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Content

This file relates to oil concessions in Saudi Arabia, particularly the Hasa [Al Hasa] concession between the Government of Saudi Arabia and the Standard Oil Company of California (SoCal). It includes discussion of the following:

  • Oil negotiations in Saudi Arabia during March and April 1933, and the reported involvement of Major Frank Holmes in negotiations relating to the Kuwait (also spelled Koweit in the file) [Saudi-Kuwaiti] neutral zone.
  • Details of an agreement for the oil concession relating to the Hasa region of Saudi Arabia, made between the Government of Saudi Arabia and SoCal (signed on 27 May 1933), and assigned by SoCal to its subsidiary, the California Arabian Standard Oil Company (Casoc).
  • British concerns regarding a request made by Casoc via the United States Embassy for its aeroplane to be permitted to fly over Kuwait and Bahrain, as part of a survey of the region relating to its oil concession.
  • Reports that Casoc may be interested in exhanging the southern half of its Hasa concession for land further west, and the effect that this might have on Britain's negotiations with Ibn Saud [‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd].
  • Reports of the discovery of oil in Hasa in 1935, and the discovery of commercial quantities of oil there in March 1938.
  • Reports that Casoc is considering the possibility of laying a pipeline from Hasa to Bahrain.
  • Casoc's oil rights in the Kuwait neutral zone.
  • The progress of operations carried out in Hasa by Casoc, including the status of its wells at Dhahran.
  • An account of a visit made by 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. at Bahrain (Hugh Weightman) to Casoc's site at Dhahran as well as to other areas in the region, in May 1939.
  • Details of a loan from Casoc to the Government of Saudi Arabia.
  • Reports of Casoc having taken the decision to construct a refinery at Ras Tanura.

The file features the following principal correspondents: 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 the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ; 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. , Bahrain; 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. , Kuwait; the Secretary of State for the Colonies; His Majesty's Chargé d’Affaires, Jedda; the His Majesty's Minister at Jedda; officials of the Foreign Office, the 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. , the War Office, the Air Ministry, and the Petroleum Department; representatives of Casoc.

In addition to correspondence the file includes the following:

  • Copies of the oil agreement and a supplementary agreement between the Government of Saudi Arabia and the Standard Oil Company of California, dated 1933 and 1939 respectively.
  • Extracts from Bahrain and Kuwait intelligence reports.
  • The minutes of an interdepartmental meeting held at the Colonial Office on 26 April 1933, concerning British interests in oil in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (notably Kuwait, Bahrain, Hasa in Saudi Arabia, and the Kuwaiti neutral zone).
  • Draft and final copies of a War Office report entitled 'Brief Summary of the Oil Situation in the Middle East, November 1934'.

The date range of the volume is 1923-1945 but only a handful of items date from before 1933. These include copies of 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 the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. 's correspondence with the Secretary of State for the Colonies and the Foreign Secretary to the Government of India respectively, which date from 1923 to 1926 and concern the possibility of oil development both in Qatar and on the Trucial Coast A name used by Britain from the nineteenth century to 1971 to refer to the present-day United Arab Emirates. .

The file includes three dividers which give a list of correspondence references contained in the file by year. These are placed at the back of the correspondence (folios 2-4).

Extent and format
1 file (574 folios)
Arrangement

The papers are arranged in approximate chronological order from the rear to the front of the file.

Physical characteristics

Foliation: the foliation sequence for this description commences at the inside front cover with 1, and terminates at the last folio with 575; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

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English in Latin script
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Coll 6/48 'Oil: Concessions in Saudi Arabia. (Hasa)' [‎97r] (193/1153), British Library: India Office Records and Private Papers, IOR/L/PS/12/2115, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040749880.0x0000c4> [accessed 18 April 2024]

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