'File 5/1 VIII Kuwait Oil Company' [‎217r] (438/558)

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. ,
WHITEHALL. T'.W.l.
25th January, 1934
My dear teal.
We had the meeting with Messrs* Fraser, Hearn
and Stevens this morning, and put our case for suggestions
8 and 9 (refining and pre-emption). We found, however,
that the Companies ? representatives were not prepared to
meet us at all in regard to the suggested refining clause,
which they stated was quite impracticable from a commercial
point of view. Their argument was that of which you are
already aware - that as a result of the extreme nationalism
of governments in commercial matters nowadays, the tendency
is for each country to seek to refine within its own
borders the oil which it consumes by setting up tariff
barriers, etc,, against imported refined oil; consequently,
the Companies fear that if they have to refine 50% of their
oil locally or in British territory, they will not be able
to find adequate markets for it.
clause, they were prepared to agree in principle about
pre-emption in time of war or emergency. On the refinery
clause, however, Mr. Fraser went so far as to state that,
so far as the iinglo-Persian were concerned, they would
have no interest in the concession if it was made subject
to the suggested condition.
consequently left over for further consideration. ^his
gives an interval in which you can bring your influence
to bear on the A.P.G.C. (the opposition came from them
just as much as from Mr. -tevens). Perhaps by this
means you will succeed in arriving at some mutually
Subject to their objection to the refinery
We did not yield at all on the point, which was
satisfactory/