Coll 5/25 ‘Air Route to India (Arab Coast): Landing ground at Bahrain; Bahrain Civil Air Agreement’ [‎52r] (103/1088)

BAHREIN - Supply of Aviation Fuel , ^ ^
for R,A,F. and B,0.A»C.
. of a Mooting hold at the Ministry of Fuel and Pov/er, 14-th September, 1945*
X
In the Chair:
Present:
Mr# Starling -
Air/Cdre Collier ( -
Wg/Cdr* Fuller (
Ministry of Fuel & Power
Air Ministry
Sir Geoffrey Pryor
( 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. 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.
in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. )
Mr# Stock
Mr. Latham
Mr. Gass
Mr. Gordon
Ministry of Fuel & Power
Anglo-Iranian Oil Company
1* The Chairman explained that with the termination of Lend-Lease and reciprocal,
aid the arrangement whereby the British Government purchased the entire output
ol Bahrein aviation fuel plant had come to an end* Moreover^ the war time ruling
whereby local requirements of aviation fuel in Bahrein should bo met from the
Bahrain Ruiinery in accordance with the "short haul” principle no longer applied#
Other tilings Doing equal it would be in accordance with present policy to meet
thcso requirements irom the nearest sterling source (i#e# Abadan) if this were
prantioable#
GaSo stated that Anglo—Iranian were most anxious to be in a position to
sopp .y aviation fuel to B.O.A.C. at Bahrein in order to avoid a break in their
Points on the air route to the East, and that they foresaw no
difxiculty in^supplying fuel both to the R.A.F. and to the B*O.A.C. at Bahrein
on a ccmpc. itive oasis, provided that they were not precluded from erecting the
necc.^^xy u.nkage by B.A.P.C.O’s claim to a monopoly# It was agreed tha t bulk
rei uelling facilities were the only practicable method of handling future
requirements, and Anglo-Iranian's earlier suggestion of shipping supplies in
drui.-is from Abadan would not provide a satisfactory alternative.
Corimiander culler stated that the Air Ministry 1 s cui’rent estimate of
R.a.K recrements of 100/130 Grade fuel in Bahrein ms 6,730 barrels a month,
and that total ^British requirements could now be estimated at about 8,000 barrels
a month as against previous estimates of about 15 , 000 *
W Mr. Gordon thought that even at this rate it might he necessary to provide
hulk storage xn addition to the existing 700 ton tank on Muharraq.
5 ‘ S^ aooi'froyvryor suggested that in order to forestall any objection on the
p.irt of the Jdahrein Government it might he neoess#(y to adjust the customs duty
navalVT™ 0ri2irl 30 48 it into line with the royalties
payable on Bahrein production. Mr^£aes considered that this would not prevent
Anglo-'Tr^iman irom otfering fuel at a competitive price.
.B 1 ' 0oDnodoro Oollier while recognising 5^advantage of drawing fuel from a
rfTfT, 80Uro ? » a 3 . an f ous that this should noV^volve uneconomic fxpenditure
on freight,equipment etc., or a law suit with B.A.KC. 0 . as to the validity at
their tankage monopoly# v^xuity or
7. Mr. Gass confimed that Anglo-Iranian would he willing to meet the extra
expenditure involved including, if necessary the erection of a new storage tAk
or tarfes within the perimeter of Muharraq airfield and on that portion of the
-roa already purchased hy the R.A.P. They would also he prepared to defray the
cost of any new pipelines and shore offloading facilities if those becomT^ ™
necessary. On the monopoly question Mr. Gals emphasised that B i pTo
were not faced with any corresponding obstacle in offering supplies’ in irb ar
8. Mr. Stock pointed out that it would not he easy for Anrlo-Trsrvi or
negotiate an exchange arrangement with B.A.P.C.O. that did not iASto dollar
payment for Bahrein production either directly or indirectly, sinb B A P
under the terms of their D.S.C. contract, already had ^ -^,^ 1011 ^ ,
outlet for their whole output#