Coll 30/124A 'Koweit (Neutral Zone) Oil Concession: Negotiations with Petroleum Concessions Ltd.' [‎297r] (593/883)

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D.O. No. 1189 - S]
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46
PERSIAN GULF The historical term used to describe the body of water between the Arabian Peninsula and Iran. RESIDENCY An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. ,
BAHRAIN.
tHe 23rd December, 1946.
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Please refer to 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. express lette
No. Ext.7930/46, dated the 6th December, 1946.
2 . I hope to telegraph my comments shortly on the
proposal to conclude a Political Agreement in respect of the
Kuwait Neutral Zone. My first reaction is that from our point
of view it is in every way desirable that we should obtain such
an Agreement and that the only reason for hesitating to take
action to this effect is the fear of causing annoyance to Ibn
Saud. His Majesty*s Minister, Jeddah, will presumably be asked
how that potentate is likely to view the matter.
3. I am writing now to state my views on the 1913
correspondence about Burgan, vide paragraph 2 of your express
letter. With all due deference to Kemp*s opinion, I feel that
even if from the strictly legal aspect the correspondence can -
be regarded as binding the Shaikh to consult us before giving
an oil concession to insist on this in practice would be
contrary to both logic and Justice. Shaikh Mubarak*s letter
is not in the form of an agreement and refers to a specific
occasion. Although he uses the word "never" I cannot believe
that he intended to bind himself and his successors for all
time in respect of all oil concessions in his territory. In
Sir Percy Cox* s letter Shaikh Mubarak was asked to agree that
Admiral Slade should inspect the places at Burgan and elsewhere
showing traces (presumably external) of bitumen and that if the
Admiral saw any hope of obtaining oil therefrom he (the Shaikh)
would not give a concession for it to anyone other than a
person nominated and recommended by the British Government.
The Shaikh replied that if the Admiral came he would send one
of his sons with him to show the place of bitumen in Burgan and
elsewhere and that if in their view 7 ( = in the view of the
Admiral and the Shaikh*s son ?) there seemed a hope of obtaining
oil therefrom he would never give a concession in this matter to
anyone except a person appointed by the British Government. The
most that can be read into this, in my opinion, is a promise by
Shaikh Mubarak not to give an oil concession except to our
nominee in places showing traces of bitumen which were inspected
by the Admiral and the Shaikh*s son (?) and from which he and
the son (?) were of opinion that oil might be obtained. I have
nothing on record to show what places were inspected by the
Admiral and what his views were regarding the prospects of
obtaining oil from them, but I do not see how Shaikh Mubarak*s
letter can possibly be read as covering places not inspected by
the Admiral and I am very doubtful if it can be held to cover
places so inspected and not claimed at the time // for exploita
tion especially after a lapse of so many years.
4. In the
E. 1 . Do naldson, Esquire, C.M.G.,
Office,