'File 5/2 V Kuwait Neutral Zone' [‎76r] (151/757)

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(b) That His Majesty’s Goverment may reserve frco the areas
of the Dperation of the oil sites selected
"for defence jxirposea, for aerodrowes, aeroplane or
"seaplano bases,.. or in connection with the development
"of harbours."
(o) That in a state of emergency or war His Majesty’s
Government should have the right ofjre-emption of crude
oil produced; may require the ca^ahy to use ar$r local
refinery facilities to produce oil in accordance with
His Majesty’s Government*s specification; and siiall
have tlis liberty to tfiuoe control of the coinpary’s works,
plant and premises,
Vfe could probably obtain these toms in respect of half the iSone
if fully owned by how®it, but Ion Saud would clearly raise the
strongest objections if we sought to apply them to the whole 2one
oimed Jointly by Koweit and Haudi Arabia and exploited by a
Joint company. In fact, ws ?/ould almost certainly have to give
up ary idea of a Political agreement whicii could be operative so
long as the status quo continues.
For your information we understand that the prospects of
finding oil aro slightly higher in the North, i.e. Aoweit half
of the zone than in the Soutiu If this is known to Ibn Saud it
will presumably make iiim less liicely to agree to division* I
I should be grateful if you could let me know what you think
about this question#
fours sincerely,
(Sgd./ C.V/* Baxter.