'File 5/1 VIII Kuwait Oil Company' [‎192r] (388/558)

3
Ydliln, who was working with one kwnyni had prepared a
draft concession in respect of the Neutral Zone and had
submitted it oo Ibn Sana. He hoped to receive his approval
in the very near future (influential persons in His
Majesty s entourage were interested) - possibly within a
month. His intention was^ once Ibn Saud's approval had
oeen ootained ? go raise the matter with the Sheikh of
Koweit (who I gathered had not yet been approached) with
a view to securing his consent also. Ydlibi's corporation
was the Arabian Development Syndicate * The E. & G.S.
had a small interest in this corporation and so were
interested in the fate of the concession. It was important
lor them moreover to recoup themselves for their previous
losses in respect of the Hasa concession^ which amounted to
some £16,000 paid over to Ibn Saud, over a period of years,
without any return.
3. Major Holmes followed this statement with a rather
involved explanation, the gist of which was that he was
anxious to make his personal position clear. He had
discussed the position of the Neutral Zone with Mr. Eraser
of the Anglo Persian Oil Company about a year ago. (The
Zone fell within the Red Line of the Iraq Petroleum Company
agreement, and could therefore be taken up by the Anglo
Persian Oil Company only on behalf of the Iraq Petroleum
Company) „ But the matter had not been pursued because it
fad been necessary for Major Holmes to concentrate in tne
lirst place on the negotiations for a Kuwait oil concession,
and thereafter to return to his post in Bahrein, which he
fad left in circumstances of which we weie aware. He hod
remained in ignorance of any developments in regard to th
Neutral Zone until quite recently, when, finding that
Ydlibi' s/
i