'File 10/1 II Bahrain Oil Concession' [‎190r] (396/503)

@)
-I
o 1
entitled to dnaad under Article V. I not, o? oours...
acquainted with the territory in question, nor with the
liffloultias Wiioh may haye been enoounted by the Coapany in the
coarse of their operations, and it lo therefore with some
diffidenoe that I exoreee any opinion on this contention, but so
far as 1 omn appreciate the natter it does not appear to to be
a very coaolusiv® one,
I ^ f 1 1 <v effect of granting a further extension of the
prospeoting lleence ^uld be to postpone the receipt by the
iliikli ot the royalt 3 es for which a raining lease would provide,
|id it tie Bheikh should com® to the conclusion that a further
po t^onemenl ©f these payments ie not Justified in ©11 the
nretira stance8, hearing in mind the time which the Company hare
fcready h^d for their preliminary work, I do not think euch e
wielusion could be challenged. On the other hand 2 do not think
ihat the Sheikh is entitled to den sad any pry .ent from the Company
m a condition of granting the extension, or, in purporting to
tet under t/ie contract, to ir/roose any condition which would
.■kst rntially increase the burdens assunied by the C orapany there"-
n ter; in coming to a decision on the matter he can, in my opinion,
niy t-"'ce into account such considerations as are expressly or
y necessary implication envisaged by the terms of the contract
I self, fh@re is, of course, nothin, to prevent the p rties from
B\inQby mutual consent an entirely new agr^arieat in sttsbstitution
I? the sting- one, and in negotiating any new r. ree ent the
aeikh would be free to suggest such conditions whether of a
biancial character or otherwise as be light think appropriate.
I am etc.,
(Sgd) M, 6wyer,
Jicretary of State,
l 'l Office,
lin e Street,S.W.I.
teK/DlFW