"ملف ٥ /١ VI شركة نفط الكويت" [و‎‎٣‎٧] (٦٢٠/٧٨)

«» 6 «*
production mhloh 1 b likely to be secured* And here the amount
Dortant, Generally speaking the Coy. with the higher minimum royalfr
of minimum royalty/will have the greater inducement to produce
oil* Itpi may also be said that too high a tonnage royalty
may retard production, and here the provision in the Eastern
and General Syndicates draft, allowing a eesra&ion of operations
should not be lost sight of* The rate of royalty offered by the
Eastern and General Syndicate is the same as that in India,
but there is a local market to absorb all the product!cm* The
rate offered by the Anglo-^ersiJn Oil Company is approximately
the earns as that levied by the Iraq Governs® nt*
In Venezuela the rate of royalty is understood
not to exceed &/- a ton in most instances, while in Trinidad
there are many leases with a roylaty of from 1/C to 2/5
although in recent years a royalty of 3/- has been imposed*
In the case of both these countries, over 90 per cent of the
oil has to be exported*
Eastern and General
Syndicate* * Anglo-^ersian Oil Company*
Qua toms Duty * The company Customs Mty* Ho similar
undertake to pag the Shaikh provision,
a Customs Duty of 1$ on all
oil produced from Kuwait
territory, calculated on
tbs value of the oil at the
wells*
Oommait.
It is not usual to impose a Customs Duty in
addition to royalty* Such & charge mi^it with some justifi
cation be levied in a country where the State does not own
the mineral ri^its and desires to secure some financial consider
ation for the loss of a wasting asset such as petroleum* But
where the State is the owner of the minerals it is regarded as
preferable that the State should take the whole of its financial
return in the shape of royally. Apart from the principle
involved there is bound to be seme difficulty in assessing the
value of the oil for purposes of the duty, whether at the