'File 5/1 II Kuwait Oil Company' [‎46r] (96/552)

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166,736 dhlra*s in all.
(b) vour royalty will be Rs.S-J per ton.
(c) lou will not be paid royalty on 8u.ch oil as is used for
their machinery. the firs/
(d) The rate of royalty to be subject to revision aftHf^ten
years by mutual agreement or, if necessary, by arbitra*
tion.
(e) If the Company take 100,000 acres, they will guarantee
to pay you a minimum of Rs.30,000/- a year either as
royalties @ Rs.S-l per ton or as a fixed rent of Rs.30000
ft whichever Is more. That is to say, if the royalties <!
Rs.3^ per ton for any one year amount to say Rs<,200,000
they will pay you Rs.200,000 and no fixed rent. If, on
the rogtltles $ Rs.3& per ton amount to only Rs. 15,000
they will not pay you any royalties, but will pay the
fixed rent of ks. 30,000 instead. Naturally, if they do
not require as much as 100,000 acres, a fixed rent of
less than Rs.30,000 will be agreed upon. Although it
icftji does not say so, I presume the rent or royalties will be
paid to Y.E. at the end of the year.
(f) Y.E. will have the right to cancel the lease if you
think that the Company Is not fulfilling the conditions
of the lease, if 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. agrees with you
that this is so and advises you to do so*
(g) Exemption from customs dues and taxes on all material
imported for the work for a period of ten years from the
date of the signature of the first agreement, I.e. the
Exploration Licence.
If there be any further point which Y.E. still does not fully
understand, I mightbe able to explain It to you better verbally.
U.E*
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