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'CONFIDENTIAL 86/31 VOL. B.64 OIL IN ITS RELATION TO THE MIDDLE EAST' [‎14r] (32/578)

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The record is made up of 1 volume (285 folios). It was created in 11 Oct 1940-22 Aug 1945. It was written in English. The original is part of the British Library: 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. Records and Private Papers Documents collected in a private capacity. .

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6
%
s
situation is precarious, partly through gradual exhaustion
of the exploited areas, partly through a rigid and
unimaginative mineral legislation policy. The eventual
development of State lands hitherto unexploited may, for a
time, tend to counterbalance the decline^elsewhere, but
there is reason to think that production may have passed its
peak. A gradual decline is rather to be expected and
consequently a steady decrease in exportable surplus, which,
even in 1938, only represented about 5;i of the world’s import
demand.
Elsewhere in Europe there seems little chance of large
scale discovery. The oilfields of GALICIA are declining
steadily, with little prospect of any compensatory discoveries.
P.mnl 1 rvi T fM p>"| rl c? -Pm-mH -n r<- t r^o-i^o notably
SO
ijor
oilfield in any of these countries.
The search for oil continues in the UNITED KINGDOM but,
notwithstanding one or two interesting discoveries, it would
be rash to assume that any considerable contribution to
British needs is likely to be forthcoming.
An analysis of the origin of 1938 imports into European
countries (exluding Spain, for which no figures are available)
gives approximately the following results
FROM I NTEHNAL SOUN CES Tons Percentage of Total
Roumania, etc.
3,900,000
FROM
EXTERNAL SOURCES
I
(a)
AMERICA.
j
i
1
U.3.A.
Mexico &
9,100,000
86 i
I
S. America
12 , 000,000
35
Trinidad
1 , 000,000
\ 3
(b)
ASIA.
Dutch East Indies
500,000
n
22i
Middle East
7,500,000
Total
34,000,000
100
Of the above total, no less than one-third (11,500,000 tons)
came to the United Kingdom.
It is evident from the foregoing that Europe is in much
the same position as Africa and Australia in respect to
dependence on external sources of supply, and is likely to

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Content

The volume comprises correspondence and discussions regarding the economic and political situation in relation to oil in the Middle East during and immediately after the Second World War. At the centre of the discussions are talks which took place in Washington DC between US and UK government officials looking at the global importance of oil, which focused particularly on oil in the Middle East.

The talks concluded with the production of a memorandum of understanding which was published 8 August 1944 as the Agreement on Petroleum between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland, otherwise known as the Anglo-American Oil Agreement (1945).

Also included in the volume is correspondence between 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 the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. (Charles Geoffrey Prior), the Secretary to the Government of India, External Affairs Department (Olaf Kirkpatrick Caroe), 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. , and His Majesty’s Minister at Jeddah (Stanley Jordan) regarding two proposed pipelines. The first being the ‘trans-arabian pipeline’ which it was proposed would link the Middle East to the Mediterranean. The proposal was initially postponed owing to heavy criticism of it in the United States press but was later taken up by the Arabian American Oil Company (ARAMCO). The second proposal from the Bahrain Petroleum Company (BAPCO) and the California Arabian Standard Oil Company (CASOC, later renamed ARAMCO) was for a pipeline to take crude oil from Dhahran [Aẓ-Ẓahrān], Saudi Arabia to the BAPCO refinery at Bahrain.

Also included is correspondence between the Chief Local Representative for BAPCO (Milton H Lipp, Ward P Anderson) and the Adviser to the Government of Bahrain (Charles Dalrymple Belgrave) regarding possible sites for the pipeline and the reservation of required land. Further discussion centred on the question of the eastern frontier of Saudi Arabia, which was in dispute, and whether His Majesty’s Government should look to tackle the matter at that time with the Saudi Arab Government or wait until the progress of the oil companies required its resolution. Jabal Naksh and Khor-al-Odaid [Khawr al ‘Udayd], which were claimed by Qatar and Abu Dhabi respectively, and whose claims were supported by His Majesty’s Government but contested by Saudi Arabia were discussed as being key areas in the frontier dispute.

Another matter discussed in the volume was a visit paid by the Mission of the Petroleum Reserves Corporation to the Middle East. The Mission’s purpose was to review resources of petroleum in the Middle East and its itinerary included visits to Kuwait, Dhahran, and Bahrain. The mission was headed by Everette Lee Degoyler and also included the eminent geologists and petroleum experts Dr George Martin Lees, William Embry Wrather, and John Herhold Murrell.

Other matters touched on in the volume include a request by ARAMCO to undertake a hydrographic survey of the coast line of the Kuwait Neutral Zone; the possibility of resuming oil field production in Qatar and Kuwait provided the necessary equipment could be obtained from the USA; articles published in American journals and newspapers regarding the global oil situation and oil in the Middle East; and a visit paid by Major Frank Holmes to Kuwait in 1944.

Also included in the volume are a number of notes and memorandums relating to oil in the Middle East:

A series of file notes which were maintained as a record of the correspondence in the volume can be found at folios 272-283.

Extent and format
1 volume (285 folios)
Arrangement

The volume contains a table of contents on folio 5 comprising of subject headings and page references. The papers are arranged in approximate chronological order from the front to the rear of the file.

Physical characteristics

Foliation: the main foliation sequence (used for referencing) commences at the front cover with 1, and terminates at the inside back cover with 287; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional foliation sequence is present in parallel between ff 7-270; these numbers are also written in pencil, but are not circled, and are located in the same position as the main sequence. A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

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English in Latin script
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'CONFIDENTIAL 86/31 VOL. B.64 OIL IN ITS RELATION TO THE MIDDLE EAST' [‎14r] (32/578), British Library: India Office Records and Private Papers, IOR/R/15/1/700, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100086676319.0x000021> [accessed 25 April 2024]

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