"ملف 82/27 VIII F 91 نفط قطر" [و‎‎٦‎٥] (٤٦٨/١٤٢)

— HirrT.,
V-Il
EiZi 6307/36
/78
• ■
BUSH'RE RESIDENCY?!
No ?^ 2 /.,.
Date.
COi^FiD^TiALRG
PETROLEUM CONGSSSIONS LIMITEgr'"
CITY-GATE H0US1,
PINSBURY SQUARE, E.G. S.
31st August 1936
Dear Mr.Walton#
/
tA^
lusion in the Qata;
Mr#Skliros promised in his letter dated May 89th to
revert later to the subject of your proposed formula "binding
the Company {or, as it may "be, Companies) to erect a
refinery on the Arab side of the Persian Gulf, as part of
the Political Agreement between it, or them, and the
Government#
He has been unwell lately and his attendance at the
Office is, for the time, very irregular. He has asked me,
therefore, to deal with the matter on his behalf.
As he feared, the Board did not find
^ acceptable the clause which you proposed in your letter
Z.3010/36, dated May 26th
The formula agreed fo^in:
Agreement of June 5th^ / 1.936, makes the erection of a
refinery conditional upon (a) commercial production being,
in the Company^s opinion, assured, and (b) commercial
conditions justifying such a step# As regards (a), ycur
Draft of May 26th generally meets this point. As regards
(b), this is evidently the crux of the matter. If the
Political Agreement, as ultimately signed, does not make
the refinery conditional upon commercial considerations, it
seems tint it would be tantairfcrnnt to saying "the obligation
to erect refineries is absolute, even though quite
unjustified by commercial considerations, and therefore
liable to involve the Company in heavy loss"
3ENTTO h
It/