"ملف ٥ /١ VI شركة نفط الكويت" [و‎‎٣‎٣] (٦٢٠/٧٠)

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Period of Lease.
As regards the period of lease both oorapaniss ask
for approximately the same terms. In the case of a country
such as Kuwait where the existence of oil has not been proved,
it is considered desirable that the period of Lease should be
a long one. The work of proving and developing an oilfield
involves very heavy capital expenditure and companies are not
likely to be attracted unless there is a guarantee of their
being able to obtain a long period in *foich they may have an
opportunity of securing a return on the money expended. There
are precedents for such a period as is now asked for in Iraq,
where the period granted by the Iraq Government is 75 years,
in Persia where the period is 60 years, and in Bahrain where
a similar period is provided for. In his letter of 25th August
1932 (36/1932) the Political Resident mentions that he under
stands that the Shaikh himsWkf asked for a period of 70 years.
Eastern & Genera^ Syndicate.
Area, The right to explore
the whole territory of Kuwait
and select an area for
ultimate development not
exceeding 1,640 square miles
divided into 6 or more blocks.
,— 4hAlo-Persian. Oil Gov.
Area. The draft agreement
covers the whole of
Kuwait territory for
the whole period of the
concession.
Comment.
The Anglo-Persian Oil Company's draft
concession provides for the grant of the whole of the area of
Kuwait, for the period of the concession. On the other hand,
the Eastern and General Syndicate provide for the selection
v
within 5 years of an area amounting in the aggregate to 1,640
square miles, p
this area may be divided up into six or more bloav*. w
arrangement * *
such an they presumably hope to secure all premising
oil bearing territory which is worth having. The value of their
proposal to limit their activities to 1,640 square miles is,
therefore, more apparent than real.
There would appear to be definite advanjfc-
ages In having the whole of this rather limited territory