Coll 5/83 ‘Re-Fuelling facilities for R.A.F and USATC at Bahrain’ [‎28r] (55/429)

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3.22257/3.9.(0; ^^,2 ]> Jun*, 19V5
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matbiA i^x^oygni SNoXJddj&ioi*
I am canapndcd by the Air Council to refer to your Signal <* 62<,
dated 5th October, in viiich you aought Air Ministry sanction to enter
into s formal contract with the iahrein Petroleum Sompar^y in connection
with refuelling arrangements for aircraft in dehrein. I am to refer also
to Air Ministry Signal OX. 6733 dated 14th December, in which you were
asked to suspend action on the proposed contract for the present, for
the reasons given in the Signal.
2. A general Conference on this question was held at the Air Ministry
on the 30th October last, attended by representatives of the Ministry of
Fuel and Power, 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. and Officers of the Air Ministry. A
Note of the Meeting is attached for your information. This will put you
in possession of the general policy of the Air Ministry at that time,
subject to such modification as later developments mJL ht require. lou
will appreciate the highly confidential nature of this Mote.
3. As you are aware, the Bahrein Petroleum Company consider that their
legal position as the sole Company entitled to maintain and operate the
tankage in Bahrein, ia unassailable, and it is understood that they vould
be prepared, if neoeasaiy, to take legal proceedings with a view to
restraining the Anglo-lranian Oil from infringing what they believe
to be their monopoly. 1 nn to observe in this connection that the Air
Ministry does not admit the benrein retroieum Company*s contention in
respect at' the two stations at kanaiar and AUharraq, for the reasons
summarised in paragraph 3 of the Rote of the idsetiqg. It would however
be undesirable, on the grounds set out in paragraphs 4 and 5 of the Note
of the Meeting, for the Air Ministry to become involved in any court
proceedings on this issue at the present time.
4. As a result of further discussions held between those present at
the meeting on the 3oth October, a letter was sent to the Anglo-lranian Oil
Company, uondon, s copy of which is al&o enclosed for your information.
The Company replied to this letter on 12th Ceoember, acknowledging the Air
Ministry's proposals but expressir%; some concern over the continuing
* security of tenancy of shore tankage*. (This concern is met by the fact
that these tanks are Air Ministry property and that we reserve the right
with either Company to continue the proposed arrangements or to modify them
in the light of experience>. The Company goes on to raise the question of
the future source of oil. Thus will be dealt with separately.
% It remains to intimate the Air Ministry's scheme to the Bahrein
Corapaxy locally. This will require very careful phrasing, in collaboration
with 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. , sad it ia requested that you should signal
the outline of what it ia proposed to say. This would cover the Mudiarraq
tanks in the first instance, end it is perhaps politic to deal with this
first and separately. The same question for Manama can be taken up later,
in the light of the developments which may ensue from the proposals in the
following paragraph.
The Air Officer Ccruasnding,
Air Headquarters,
l*lAq and P&talA.
Copy for A.0.0.-in-C. , Air Headquarters, kiddie seat Command.