مجموعة ٣٠ / ١٢٤أ "امتياز نفط (المنطقة المحايدة) بالكويت: المفاوضات مع شركة امتيازات النفط المحدودة." [و‎‎٧‎٤] (٨٨٣/١٤٧)

Any reply to be addressed : —
The Secretary.
Telephone : ABBEY 7000.
Telegrams :
“ MINFUPO, SOWEST. LONDON.”
Reference : Hi 745 Ft. 6
Your Reference :
A
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MINISTRY OF FUEL AND POWEI®
PETROLEUM DIVISION,
7, MILLBANK,
LONDON. S.W.
5th December, 1947*
(4^
Dear Harrison,
Kuwait Neutral Zone
With reference to the bidding for the Shaikh of Kuwaiti
oil rights, the Burmah Oil Company are becoming perturbed at the
forcing up of payments by the American Independent Oil Company
and their latest bid reported by Tandy in his note, of which you
sent us a copy, does not improve the situation. The rate of
royalty on crude oil of about 9/- per ton offered exceeds
appreciably the prevailing highest royalty rate in the Middle East
of about 8/- per ton, and there are bound to be consequential
repercussions. It is expected that B. 0. C. will agree to better
American Independents present terms, but before Abraham is able
to discuss them with the Shaikh next January the Americans may
think fit to increase their bids to figures which B. 0. C. may well
consider prohibitive and that the concession on such terms is an
uneconomical proposition.
I think we must be prepared for the possibility that
B. 0. G. may wish to call a halt, not perhaps completely, but
adopting the standpoint that they cannot continue unaided. Doubt
less many diverse factors will be taken into account by the Shaikh
in awarding the oil rights, albeit the financial aspect is likely
to remain uppermost. \
B. 0. C. have tentatively mooted a combination of them
selves and some American or other group, to which it is thought
F. A. K. Harrison, Esq. ,
Commonwealth Relations Office,
King Charles St, S.W. 1.
/there