'File 5/2 III Kuwait Neutral Zone' [‎68r] (140/779)

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(E 2067/260/91).
OIL CONCESSION IN ARABIA.
Kuwait Neutral 4one.
At the end of a conversation with me this morning on the
question of the proposed Saudi Arabian Ked Sea Littoral Oil
Concession - which 1 am recording separately - Mr.Skliros of
the Iraq Petroleum Company raised the question of the proposed
oil concession in the Kuwait Neutral ^one.
2. He explained that Mr. Idlibi had now informed him that he
had actually acquired a concession - or at any rate an option -
from King I bn Saud over the Kuwait Neutral ^one, in so far as
Ibn Saud’s own rights therein were concerned. Mr.Ydlibi had
further asserted that he had obtained a promise from the Shaikh
of Kuwait of the grant of a similar concession, or option, on
identic terms, in respect of his rights. Mr. Ydlibi was very
categorical in his statements and was now offering the con
cession, or option, to the I.P.C.
3. I replied that Mr. Ydlibi’s interest in the Kuwait
Neutral Zone was well known to us, but that the position, as
far as we knew it, still was that the Standard Oil Company
of California already held an option from King Ibn Saud in
respect of the latter's rights over the Neutral Zone, and that
any negotiations for any alternative concession, or option
must necessarily be in the first instance with the Standard
Oil Company of California rather than with the King. As
regards the Shaikh of Kuwait’s rights, the Shaikh w a s precluded
by his agreements with His Majesty’s Government from granting
any concession without our approval. It seemed to me therefore,
that there must be some mistake.
4. Mr.Skliros agreed and explained that he had Just been
in touch with 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. in the matter, with a view to
ascertaining /