"ملف 8/15 سلسلة الجزيرة العربية - ١٩٣٣-١٩٣٩" [ظ‎‎٩‎٣] (٤٣٤/١٨٦)

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2. ^Phe area to be that shown in the attached map (not reproduced) and to he
hounded as follows :—
From the intersection of meridian 38 degrees east and-parallel 29-degrees
35 minutes north-westward, by the frontier of the territory now under the Saudi
Government towards Transjordan. On the west by the Gulf of Aqaba and the
Red Sea as far south as the Bay of Birk at parallel 18 degrees 10 minutes north.
Thence by a line from Birk north-eastward to the village of Raghdan, Ghamid ;
thence north-westward to Dirth Samuda ; thence north to Ashira ; thence to
Mahdatha and Kharaba ; thence to Maran and Iqba, waters on the western border
of Kashb (IQishab) ; thence in a straight line to Mahd-udh-DhaJhab (the “ Cot
of Gold ’*) at an estimated distance of about 20 kilom. east of Jureysiya ; thence
in a straight line north-westward to Hanakiya ; thence in a straight line to the
station of Hadiya on the Hejaz Railway, leaving Khaibar outside the area ;
thence north-westward in a straight line to the intersection of meridian 38 degrees
east and parallel 29 degrees 35 minutes north. Specified areas round Mecca and
Medina are excepted.
3. Work to begin within three months and to be pursued, saving force
majeurc. Equipment to be ordered within thirty days. The Syndicate to
designate by the end of one complete year the places which it wishes to prospect ^
fmther. The Syndicate to designate by the end of two years places to be leased
for fifty-eight years, for effective mining operations, to companies formed by it
for the purpose.
4. No rent payable during the first year. Four shillings sterling per feddan
to be payable in advance for the second year in respect of areas selected for
further prospecting. Annual rent of £1 per feddan to be paid in respect of areas
finally chosen for mining operations. Five per cent, of the gross value of
minerals extracted to be paid during the search less the rent of 4s. per feddan,
the Government receiving whichever amount is the greater. Payments to be
made in any currency at current rate of exchange into a bank designated by the
Government. The Syndicate to notify the Government of any transfer of rights
to any other company, but: the Government shall not refuse sanction unreason
ably.
5. Enumerates various undertakings by the Government, including exemp
tion of the Syndicate and its transferees from all taxes, etc., subject to payment
of 10 per cent, on all materials imported. Such materials not to be sold in the
country unless the Syndicate has made this up to the ordinary customs duty.
The Government promises all facilities for camps, houses, etc., and means of
communication, but the use of aeroplanes and wireless is to be the subject of a
special agreement. The Government to have the use of all railways, roads and
ports created by the Syndicate, subject to not damaging the Syndicate’s interests.
This also shall be the subject of a special agreement. This article deals with a
great many other details.
fi. Enumerates various undertakings by the Syndicate. Employees shall
he subject to local law. Saudi labour to be employed where suitable. Engage
ment of foreigners for work which cannot be done by Saudi subjects to be subject
to the sanction of the Government, which may be assumed if no answer is
returned within a month of notification. Several other matters are provided for
in this article, the most important being that, when final leases for areas selected
for effective mining operations are granted, the Syndicate shall form companies
to work them and shall give the Government 15 per cent, of the shares of such
companies, fully paid up. Ten per cent, of the shares are to be reserved for
subscription by Saudi subjects within thirty days of notice being given to the
Government. The companies shall pay to the Government half-yearly 5 per cent,
of the gross value of the output, but the rent previously payable shall lapse from
the date of the leases.
7. Provides for cancellation of the agreement by one side or the other in
specified circumstances and defines the effects of such cancellation.
8 . Miscellaneous provisions, mostly of minor interest but including provision
for arbitration in case of dispute. Each party to name one arbitrator, with a
third arbitrator to be named by the two arbitrators or, failing agTeement, by the
parties, or, failing agreement between the parties, by the president of the
Permanent Court of International Justice. This article also provides for
ratification of the agreement.