'File 5/2 VI Kuwait Neutral Zone' [‎48r] (95/702)

Copy.
(E 965/1554/91)
U
(9
Claim of American Independent Oil Company to the
Island of Qaru, Kubbar and Umm Al Klaradhln*
——OQO—
we have had a conplelnt from the American Independent
Oil Conpany, mildly supported by the U.S. Embassy, of the mis
use of political powers in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. in support of a
British commercial interest. we have refuted this claim,
to the satisfaction as we hope of at least the U.3. Embassy.
2. The conplalnt turns upon the Company's efforts to
obtain the permission of the Sheikh of Kuwait to explore
for oil on the three islands of Qaru, Kubbar, and* Umm al
tfaradhln, which lie well out in the Gulf east and south east
of Kuwait. Our first indication that AMINCO were intonating
themselves in these islands was Kuwait telegram No. 41 of
(£15110). 23rd November. This reported that the Sheikh had called upon
the Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. and shown him a letter received from a
representative of the company which is reproduced in the above
telegram. The letter purports to confirm an understanding
reached between the Corrpany (who have a concession covering
the Neutral Zone between Kuwait and Saudi Arabia) and the
Sheikh that the three islands which are considered to be those
referred to in their Concession of 28th June, 1948, are "wholly
owned by Your HighnessU The Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. repofced that
as there seemed no doubt that the islands belong to Kuwait
proper and not to the Neutral zone they were presumably in the
area covered by the Kuwait Oil Conpany Concession. Foreign
Office telegram No. 307 of 27th November replied to Kuwait that
the Sheikh appeared to have involved himself in discussions
concerning rights which he had already granted to the Kuwait
Oil Company and the Sheikh should be advised accordingly. The
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. in his telegram No. 16 of 29th November
also supported the views expressed by Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. ,
Kuwait, and concurred in by the Foreign Office, that the
islands belonged to Kuwait proper and were covered by the
concession of the Kuwait Oil Company.
3. The Political Agent A mid-ranking political representative (equivalent to a Consul) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Agency. then reported on 11th Decent)er
that after discussions with the Sheikh, the latter had stated
that the islands were not included in the AMINCO Concession
and that the AMINCO representative was being so informed; but
that the islands were also not included in the Kuwait Oil
Company Concession.
4. There were no further developments until a few days
agoj when the U.S. Embassy showed us a State Department tele
gram reporting that AMINCO representatives had compfained to
the Department that inproper pressure was being put on the
Sheikh at Kuwait by the British auhhorltles in an attempt to
make him discriminate against AMINCO. Mr. Hardey Stevens, the
AMINCO representative, arrived in London and called at the
Foreign Office on 15th January to present the Con^any's case.
The Assistant Legal Adviser and a representative of the Ministry
of Fuel and Power were present. A record of the meeting is
shown at Flag A •
5. In brief, the Corrpany's case was that, at the time
of concluding the Neutral Zone Concession, both the Sheikh and
the Oil Coriqpany understood the three islands to be included
in the terms of the Concession and to support this Mr. Stevens
/ produced