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Coll 30/124 'Koweit (Neutral Zone) Oil Concession: Negotiations with Petroleum Concessions, Ltd.' [‎77r] (153/897)

The record is made up of 1 file (447 folios). It was created in 4 Nov 1935-30 Dec 1944. 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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V^)l
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Kotf on an InttrYlew with Mr* H#0. Rhoadee of the
Eastern Gulf Oil Company Limited at the Agency An office of the East India Company and, later, of the British Raj, headed by an agent. on
the 19th of June, 1943*
Prelimin ary *
Mr* Rhoadee accompanied by Mr* L*D* Scott, M*C*» the
General superintendent of xhe Kuwait Oil Company Limited arrived
from Abadan in an Anglo-Xranian Oil Company aircraft on the 16th
of June* They paid a oourteey call on Hie Highneee on the same
day and later called at tne Agency An office of the East India Company and, later, of the British Raj, headed by an agent. . Ho business was discussed
with His Highness or with 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. *
Mr* Rhoades stated that he had come to Kuwait for two
purposes which were (a) to approach the Shaikh with regard to
acquiring his rights in the Neutral Zone* and (b) to prepare
for certain preliminary operations in connection with tne Eastern
Gulf Oil Company Limited’s Sulphur Concession*
(a) With regardto the Neutral Zone Mr* Rhoades e^res^ed
surprise that the Shaikh had obtained such early iniormation of
the purpose of his visit* He would undoubtedly have been
Interested to learn the source of His Highness’ information
but care was taken not to satisfy his not unnatural curiosity*
2* Mr* Rhoades stated that he had been infozmed of the
Shaikh’s attitude by 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. when he wae in London,
but that the instruotions he had received from his principals
were clear and he bad no option but to make an approach to His
Highness* I informed MT* Rhoades that His Highness had made
it plain to me that he was not prepared to discuss this question
with him or v/ith ary other individual at the present time*
Mr* Rhoades said he quite realised the position but he must cany
out his instructions* If however the Shaikh informed him that
he would not discuss the matter then there would be no more to
be said for the time bting* Ho does not propose to raise the
question with His Highness for three or four weeks*
3. Mr* Rhoades indicated that his Company ’the Sastern Gulf
Oil Company Limited) had had preliminary discussions wit a
California Arabia Standard Oil Company, who have already acquired
Ibn Baud’s right* in the Neutral Zone, and that there was
reason to believe that in the event of these negotiations
with His Highness being successfully concluded the two
companies would be able to conclude a mutuali-i satisfactory
agreement for the development of the area*
4* Mr* Rhoades stated that he would keep Mr*G*N*Jackson
(who will act as 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. when I am in India) fully
informed of the progress of the negotiations and that he
proposed to utilise the services of Abdull® Hu11a Saleh, His
Highness 1 Secretary, as interpreter when he discussed iu&h^rs
with the Shaikh*
(b) With regard to the sulphur Concession Mr* Rhoades stated
that it had been indicated to the Sastern Gulf Oil Company
Limited by the appropriate Department of the United States
Government that personnel and equipment not required by the
Defence Services could he made available for the preliminary
investigation which was necessary to determine accurately if
the Kuwait sulphur deposits were sufficiently ooncentrated to
make development on a oommercial scale practicable.
satisfactory
immediate
If the result of this investigation was
then MT* Rhoades understood that material for the
development of the field and the erection of the necessary
refinery would be made available from the United States*

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Content

The file concerns negotiations with Petroleum Concessions Limited (PCL) over an oil concession agreement in the Koweit [Kuwait] Neutral Zone. The Shaikh of Kuwait [Aḥmad al-Jābir Āl Ṣabāḥ] exercised joint control over the Neutral Zone with the King of Saudi Arabia [‘Abd al-‘Azīz bin ‘Abd al-Raḥmān bin Fayṣal Āl Sa‘ūd], generally referred to in the papers as Ibn Saud, and neither ruler could grant a concession without the co-operation of the other. The Sheikh of Kuwait could not grant a concession without the approval of the British Government.

The papers include: draft concession for the Neutral Zone prepared by Petroleum Concessions Limited (folios 419-433); 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. correspondence, memoranda, and minutes of meetings with oil company representatives; correspondence concerning the negotiations from the Foreign Office, the British Legation, Jedda, 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 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. , and the Petroleum Department (later the Ministry of Fuel and Power); Ibn Saud's decision, as far as his own rights in the area were concerned, to grant an option to the Standard Oil Company of California (later the Arabian American Oil Company), (the rights were secured by agreement in 1939); the question of whether the Kuwait Neutral Zone was within the 'Red Line Agreement' of 1928 (e.g. folio 357); correspondence from Petroleum Concessions Limited; the Company's decision to pursue an option rather than a concession (folio 348); draft option agreement (folios 332-335); the role in the negotiations of Major Frank Holmes (including correspondence from Holmes); the Shaikh of Kuwait's view that the whole of the Neutral Zone should really belong to Kuwait (e.g. folio 320); minutes of meetings at the Foreign Office with representatives of the Company, and the Company's financial offer to Ibn Saud (folios 253-269); and the agreement between the Arabian American Oil Company and the Eastern Gulf Oil Company to compete with PCL for the Shaikh of Kuwait's rights in the Neutral Zone, 1943-44.

The file also contains one apparently misfiled letter dated 31 January 1947 (folio 4).

The file includes a divider, which gives a list of correspondence references contained in the file by year. This is placed at the back of the correspondence.

Extent and format
1 file (447 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 (used for referencing) commences at the inside front cover with 1, and terminates at the last folio with 448; 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. An additional foliation sequence is present in parallel between ff 5-447; these numbers are also written in pencil, but are not circled. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

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Coll 30/124 'Koweit (Neutral Zone) Oil Concession: Negotiations with Petroleum Concessions, Ltd.' [‎77r] (153/897), British Library: India Office Records and Private Papers, IOR/L/PS/12/3856, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100048795728.0x00009c> [accessed 29 March 2024]

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