'File 5/7 Mining of Burgan Bitumen' [‎14r] (27/282)

CONFIDENTIAL.
&
52*0
30 th May 1 * 42 .
To The Office of the C.E.Bases,
(Lieut•D.Lumley, R.E., ),
B.E.F., Basrah.
Dear Sir,
With reference to our letter dated 13/5/42 we have
now received replies from our London Principals to the
communication addressed to them and we have to inform you
that we will undertake the mining of the Bitumen on the basis
of recovering from you all charges incurred in the operation,
including any Dues and Duties payable by this Company to the
Shaikh or to any other person or institution in Kuwait.
Administrative and indirect charges will be recovered by means
of a percentage on the aggregate of the other costs.
additional remuneration for their services, but for this
reason we would exoect the right to review and revise this
basis If we wished to do so on giving reasonable notice, say,
3 months•
In our last letter we nuoted to you a figure of
ah.15/-per ton, but as the main expenditure and payment will
be in Rupees Indian silver coin also widely used in the Persian Gulf. we now quote Ks.lO/- per ton as being our estimate
of the approximate mining coat, this figure is exclusive of
local Dues and Royalty payable to the Shaikh and the local
authorities, which we estimate will amount to Ra.l/*/- per ton
on an average sample of raw material, but this amount is
dependent on the bitumen content.
There may of course be other Dues and Duties to be
charged of which we are unaware at the present time, but the
total charges incurred according to our present estimate will
amount to approximately Rs.11/9/- per ton of the raw material,
to which we would propose to add 10% to cover administrative
and Indirect charges.
lie shall be grateful to be Informed as soon as
possible whether this work is to be put in hand.
Yours faithfully.
Thus Kuwait Oil Company will ask no profit or