'File 10/1 II Bahrain Oil Concession' [‎73v] (163/503)

I did not at the time raention this po^nt but I think there 1s an
agreement made at the time that the company changed hands to the efxect thi.
a certain proportion of the men employed, or perhaps as many as possible,
shall be British subjects or Bahrain subjects, perhaps this po^nt could be
verified as I do not seem to ha^e any note of it in my file.
Mr Lombard 1, who d^d most of the talking, then spoke about the other
100,000 acres. Ke said that they wished to get onto the Mining Lease at
once but they were deterred from do-'ng this without being safeguarded from
another company coming In on the additional area, he said that they w 1 'si. 'd
to take a mining lease on this additional area and were wining to pay for
it and also to make a loan on future royalties to the Government. If there
v ere no royalties forthcoming they would lose the money, they were prepared
to recover the loan o^er a long period and not until after the State was
red e^lng a large sum from royalties In one year, they would also pay a
sum of Rs 30,000 per annum on the additional area and Rs 10,000 cash down or
getting It, They pointed out the ultimate advantages to the Government if
the company was enabled to get onto the ^ning lease as soon as possible
and also the d 1 sad^antages to us of ha^ing another oil company competing
with them In Bahrain. I sug ested that from another point of Mew it might
be thought likely that security would result in slower progress but against
this they argued that they were spending ^ery large sums monthly w^ th so
far no return for them. I told them that I myself thought it unlikely
that Shaikh Emedwould be Interested in their suggestion. Prom con-ersatlor
between Mr Jansen and Mr Lombardi I obtained the impression that the former
thought that the latter was not offering enough. They were all nervous^atr "
the thought that some other company might try to step in.
The same evening Shaikh ^arned ga^e a dinner party to the directory
before dinner Shaikh Haaaed introduced the subject of the A.P.O.c. concessior
in Kattar and asked the directors about the terms of the concession, the
conversation was,plainly not ~ery acceptable to them. Otherwise no
business was mentioned.
~he next day I had a long talk with Shaikh Hamed and Shaikh Abdulla
about oil matters. They were very disappointed that the directors were not
able to give a definite date for production, they were inclined to consider
leasing the ad- Uional area for what they could get, owing to the urgent
need for money and they also considered opening tentative negociat-5ons (
t at the time mention this po^nt but I think there 1s an
e at the time that the co&pany changed hands to the effect thi.
portion of the men employed, or perhaps as many as possible,
^sh subjects or Bahrain subjects, perhaps this po^nt could be
do not seem to ha^e any note of it in my file,
rdl. who d^d most of the talking, then spoke about the other
. He said that they wished to get onto the Mining Lease at
were deterred from do^ng this without being safeguarded from
ny coming in on the additional area, he said that they w T 3l. "i
Ing lease on this additional area and were willing to pay for
o make a loan on future royalties to the Government. If there
ties forthcoming they would lose the money, they were prepared
e loan o^er a long period and not until after the State was
arge sum from royalties in one year, they would also pay a
000 per annum on the additional area and Rs 10,000 cash down or
They pointed out the ultimate advantages to the Government If
1 an enabled to get onto the ining lease as soon as possible
iiisadvantages to us of huving another oil company competing
lilifn
Bahrain. I sug ested that from another point of ""lew it might
icely that security would result In slower progress but against
■
ied that they were spending v er y large sums monthly with so
for them, I told them that I myself thought it unlikely
med would be Interested in their suggestion. From con'-ersatlor
isen and Mr Lombard! I obtained the Impression that the former
/ --
the latter was not offering enough. They were all nervous"at"
lat some other company might try to step In.
evening nhaikh •Earned gave a dinner party to the directors.
Shaikh Ilaroed introduced the subject of the A.P.O.C. concesslor
asked the directors about the terms of the concession, the
■as plainly not v er y acceptable to them. Otherwise no
lenti oned.
day ~ had a lon^ talk with Shaikh Himed and Shaikh Abduls a
' ers • The y were ^ery disappointed that the di rectors v ere not
1 def in- 1 te date for production, they vere inclined to consider
i i ti onal area for what they could get, owing to the urgent
and they also considered opening tentative negociation®t