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Government of Saudi Arabia should issue a joint proclamation with the Ruler
of Kuwait, or a proclamation on their own behalf parallel to one issued by the
Ruler, claiming the same rights over the sea-bed area of the Neutral Zone as
they had over the land area of the Zonc.(‘7T) A similar proposal was made to the
Ruler of Kuwait and accepted by him, though with reluctance, as he feared that
discussion with the Saudis about the proclamation might raise the question of the
status of the islands of Qaru and Umm al MaradimO78) (paragraph 62 above). In
September Her Majesty’s Embassy at Jedda proposed to the Saudi Arabian
Government that they and Kuwait should issue a joint proclamation and forwarded
the proposed text of such a proclamation.(,79)
85. The Saudis did not reply until March 1953, when they informed Her
Majesty’s Government of their general agreement with the proposal made but
suggested a number of alterations, mostly unimportant, in the wording of the
draft.(180) The only alteration of significance was the omission of a reference to the
good offices of Her Majesty’s Government being used to bring about a further
agreement between Saudi Arabia and Kuwait concerning their rights in the
sea-bed, in accordance with the formula used in the Kuwait-Nejd Boundary
Convention.C81) Her Majesty’s Government approved the Saudi Arabian Govern­
ment’s draft subject to two amendments but instructed Her Majesty’s Ambassador
not to address the Saudi Arabian Government further on the subject as they were
examining the question of the administration of the Zone and did not wish to
attract the Saudi’s attention to it for the time being.C82) No further progress had
been made in the matter up to the end of 1953.

VI.—Oil and Sulphur

(a) Kuwait
(i) Oil
86. In 1913 the Ruler gave an undertaking in writingC83) that if an Admiral
who was visiting Kuwait after seeing “ the place of bitumen in Burgan ” thought
there was a hope of obtaining oil therefrom he would never give a concession for it
to anyone except a person appointed by the British Government. Doubt has
been expressed regarding the extent to which this agreement can be considered
still binding on the Ruler(iM) and an effort made to improve upon it in 1935 failed
(paragraph 89 below).
87. In the Historical Summary of Events for 1907-1928(185) it is reported that
negotiations for an oil concession in Kuwait by the Anglo-Persian Oil Company
had proved unfruitful. At the opening of the period under review the Eastern and
General Syndicate represented by Major Holmes was the only company interested
in Kuwait oil.(186) Holmes prepared several draft concessions and made a number
of visits to Kuwait but made no headway as he wished to assign the concession
when obtained to the Eastern Gulf Oil Company, an American company, and both
His Majesty’s Government and the Ruler insisted on a clause being included in the
concession which would permit of its assignment to a British company only.C87) In
January 1931 the Anglo-Persian Oil Company reported that the geological
information at their disposal did not encourage them to take any further steps about
obtaining a concession for Kuwait, but later in the year they changed their minds
and obtained permission to send a small party of geologists there. The United
States Government complained of discrimination against American companies and
Sir John Cadman informed the Foreign Office that any oil in Kuwait would not
be of interest to the Anglo-Persian Oil Company and that the Americans were
('”) F.O. to Jedda. Despatch 56 of June 6. 1952 (EA 1087/10 of 1952).
("•) Tel. from Kuwait to P.R. 151 of June 21. 1952 (EA 1087/16 of 1952).
("•) Jedda to F.O. Despatch 104 of September 3. 1952 (EA 1087/22 of 1952).
(,8°) Jedda to F.O. Despatch 49 of April 12. 1953 (EA 1083/23 of 1953).
(«•«) No 8 n. T.C.
(,,a) F.O. to jedda. Despatch 64 of June 23. 1953 (EA 1083/23 of 1953).
(m) No. 6 II. T.C.
(,84) I.O. to F.O. Ext. 8658 u.d. (E 532/63/91 of 1947).
(,,s) Para. 29 at p. 79. P.G. 13.
(,,‘) C.O. Compilation, Middle East. No. 32.
(,,T) (E 189/189/91 of 1934.)
46639 M 2