File 2794/1921 Pt 1 'Persian Gulf: oil' [‎259r] (519/650)

6
To
BOB
His Excellency,
The High Commissioner
BAGHDAD,
Dated 22nd December 1921
I have the honour uo state that X have been instructed
by the Board of the Anglo-Persian Oil Company Limited to
open negotiations with the Sheikhs of Bahrain and Kuwait
with a view to concluding Agreements with them in connec
tion v/ith Oil in their territories.
As you are noj^ doubt aware, it was provided under the
arrangements concluded in 1914 for a fusion of interests
in regard to Turkey of the D’Arcy Exploration Company and
of the Turkish Petroleum Company that none of the partici
pants would interest themselves in concessions anywhere
in the Ottoman Empire otherwise than through the Turkish
Petroleum Company,
5, The Clause in question reads as follows:-
”10. The three groups participating in the Turkish
^Petroleum Company shall give undertakings on their
"own behalf and on behalf of the Companies associated
^with them not to be interested directly or indirect^
"in the production or manufacture of Crude Oil in the
^Ottoman Empire in Europe or Asia, except in that
part which is under the administration of the Egypt
ian Government or of the Sheikh of Kuwait or in the
Transferred territories"on the Turko-Persian Fron
tier, otherwise than through the Turkish Petroleum
"Company".
4. You will note that the territories of the sheikh of
Kuwait are specifically encluded.
5, The Board do not consider it necessary at this stage
to incur the considerable expense involved in registering a
new Subsidiary Company, and propose that negotiations should
be conducted on behalf of the B’Ancy Exploration Company,i
trust that this course will have your concurrence.