Page 133 - Records of Bahrain (6)_Neat

Revision of royalties 121

No. CON-IAO, 2nd March. 1950-

IIIu Highness bhoikh Uir Gulmun
bin Ilaroad al Khali fall, K.C.l'.L.,
nuusa OF MWIEIN.
After Greetingsi
As Your Highness lo aware, the
Bahrein Petroleum Company hue been givlni
careful consideration to tho letter No,
626-20 of Your Highness1 Advisor. Hr. C.
Dalrymplo Belcrave, C.B.E., dated 26th
December,19^9, concerning rovlsion of the
rate of oil royalty provided under Articl
VII of tho Leaso Agreement dutod 29th
Decorator, 193*+» botween the Bulor of
Bahrein and the Bahrein Petroleum Company
That lettor and tho subject of royalty
ratos have boon under oxtonsivo discussic
with Mi*. Dolgrave.
Glnco tho Gtatouont of Mr. U.H.
Pinckard duted 23rd March,19U9. which ua.',
delivered to Your Highness, conditions
throughout the vox*Id under which oil in.ot
be marketed luxvo dovelopod rapidly in the
direction feared, depressing prices and
seriously reducing tno aroa in which oil
products may be sold in free competition.
Rapid development of oil resources has
resulted in large ourplusos of oil in
many parts of tno world, which, combined
with post-war problems of national in­
debtedness, have rosultod in groat
proecuro upon all Governments, includin;
that of tho United Gtutos to reduce and
rostrict tho importation of oil.
As diucuosions with Hi-, lie 1 grave li*iv
clearly shown, both Youi' Highnoos and Mi*
Bolgivivo rccognloo tho necessity of
establishing and retaining conditions the
will pox'init tho Iiahroin Petroleum Co.np.mv
to bring oil from Your Highness' domains
into the raarkots of tho world in fair
competition with oil from other areas an<
free of burdono that would prevent the
salo of Iiahroin oil on equal terms with
other olio. Uorld ourplusos and tho
rostrlctionu by Governments make this
difficult.