'File 5/2 III Kuwait Neutral Zone' [‎106r] (216/779)

(g 2132/260/91)
COPY*
gxtraot from letter of 17th April froj Mg»8kllrog
( Petroleum Conoeaslona Limited) to 19% Handel*
7. I have also to report some moremat In connexion
with the Kuwait Keutral zone area. Regarding the half rights
belonging to the Shaikh of Kuwait, our negotiator in the Persian
Gulf has been told not at present to eddx esa himself to the
Shaikh and is, of course, abstaining fro* doing so# As regards
Ibn Seud’a half rights, 70 learn from Mr# Janson that fdlibl
la endeavouring to secure these from Ibn Saud on terms of which
Mr#Janson has informed us in outline. We consider these
terms. If correctly reported, to bo excessively high and we
particularly dislike the obligation to pay large sums In gold,
a metal of which we have hitherto been able to avoid the mention
In our dealings in Eastern Arabia* The tsrms apparently being
offered by Ydllbl to Ibn Seud are much higher than those we had
proposed (if and when allowed to do so) to offer to the She
of Kuweit* We are, therefore. Informing the Arabian
Development Syndicate that we are not buyers of the Keutral
Zone rights which they may have obtained from Ibn Saud on
exhorbltant terms Involving gold payments; nor is Ydllbl
*
directly or indirectly acting for ue in c mnexlon with the
Neutral Zone•
6# One result, however, of high denmmde by Ibn Saud for
his half rights may well be that we shall feel it best to
content ourselves with an option (as opposed to a concession)
to be obtained from the Shaikh of Kuwait for his half* That
we should thus confine ourselves has already been the
unofficial