'File 5/1 II Kuwait Oil Company' [‎64r] (132/552)

C/o Mfcjor *. C. r. fllBoa, y
Blvirtioot-l Mvistr.
a 4 5 K i. li. ' >
'
i>t*h March 15M3.
£ left Kuwait on Saturday afternoon at about four, eroaaad
orer to f&lllkah, ahoro X haJ. tod for dlnnor f and than on to
Bublyan, ahoro X anohorod for tho night. On ^ornln^ X went
on to Foo, ah«ro t otoppod a oonplo of houra to &tv8 ajr croa a
ohanoo of going oh shero to do awo oookli^. X left >ao at noon
and got into Ruhaaaarati 9 oaidontiy passing you in the snort out
botnoon Abbad&n and Muhanaarah. X otop^oa the night there,
with A.f., and oano on horo on Monday i&oming.
X havo dloouoood both tho quootiono ahich you aontionod in
your M.O, uf 4th March with A.f.
Regarding tho Oil oonooooion, X onoXooa horoaith a draft
Agroonont ahieh ho produood and ahieh ae want through togtthor
and on ahi«ih ao nado certain aitorationo at tho tino.
As you will cm it io a single Agroonont to cover tho "Ex
ploration Licence", tho "Proopooting Licence” and tho “Exploita
tion Leaoo , and pereoiuOly X aoo nothin but adeantago in haring
it all in ono document,
Xn Artiolo X a poriod of do yoara io aontionod, which mo
no* to no. Xt io aloo for “tho aholo oxtont of tho torrlterioa
undor hio control", inoto&d of tho torritory within tho rod ami-
cirolo, ae in h tho papor ahioh you oont to no. X poiatod this
out to A.*., and ho eaid that thoy had no intontioa of going
Moyoad tho rod lino at prooont, and eaid that if ao ilfcod ho
would giro an undortaklx^ that they would not do oo without V
prevloue roforoaoe to R.i« Oovornaont.
Xn Article 4, ho had put in a clause making tho froopoetiag
Licence renewable for too years* ll£o tho Xxploratiou Liconoo,
but cut it out on uy raising tho point.
Xn Artiolo & * he has made tho oxsuptiou from Customs duos
poruanont, inotoad of for %mm years, and has also made thou
include the "reasonable personable roquirononte of employee#**
A.f. says tho oonpanii are rosy anxious to havo this a permanent
arrangement, and points out that Article %M should safeguard tho
Shaikh fro* lose. —
Xn Artiolo 10, X told A.f. that X thought tho Shaikh mould
never agree to the second paragraph with gentleman like Faisal et-
hamiaht Xbn Mallaf, etc. at large, and he says thoy would not uh -
mind giving him on additional document to tho effect that they
would not actually hold him responsible in case of force mjour.
fhe mot difficult point was in Artiolo AM. Xn tho paper you
oral mo tho rate of royalty wao to bo subject'to reviciom at tho
•ad of ton foair. fro* tho at . fTOlffilMKi
fedssnfis (X have not got tho file mill with mm but am sure this isse
msroas in his draft it was ton years from the date of tho flrot *
payment of royalty, - i.o* a possible difference of six years, fhe
Colonial Office letter of 89th March 1988 does mot mom psrtieUXar
ly dear on tho subject, and A«f« said ho hod never rood it any- •
thing except his may* 8e suggested a compromise of it from date*
of oigmaturo, and X do not think tho Shaikh would eavei at that*
Artiolo it la a distinct Improvement from tho thaithV point
of view. ~ ^
In Article 14, tho naety Ro.lQi^/n R tipa" to tho Shaikh.idiiah
it made mo biuoh to offer, havo born out out, end two sum of
Rs.lO,POO/- substituted. In tho original draft tho sonmwl of thooo
waa^to bo ta tho oront of an extenelom of tho S^plmatiom License
but on my suggesting that it should bo on tho gmnt of a Prospect
ing Licence instead, ho agreed, or rather said the Shaikh could -
havo tiklehever ho preferred. _ _ ^
X shall bo very grateful if you will let me babe this draft
Agreement b ov k to Kuwait (whore X hope 0 arrive on Monday morning)
together with your comments, mod lot mo know if you see any
objection to my carrying on on those limes, as A.T. wants ms to.
On the whole it seems to as to ba batter than the original, and
is a simplification to get rid of all the talk about the 4^
A ^ lH.n .ii A * J
acres for the Prospecting Licence