Page 251 - Records of Bahrain (5) (i)_Neat

Background and claim to Ilawar islands, 1936-1942 239
Minute Paper. Department.

between the Sheikh and the two companies v/ho are
competing for the unallotted area, namely, the
Bahrein Petroleum Company and Petroleum Concessions

Ltd. Apparently, the Sheikh is anxious himself to
undertake negotiations and feels that as both
companies have their headquarters here it would be
appropriate to do so in London, Subject to any
observations the other departments may have to
make, it is proposed to inform the Sheikh of Bahrein,
through Mr. Belgrave, that there is no objection to His

Excellency negotiating with the two companies while he is
I in London provided he keeps the India Office informed
I
of the progress of the negotiations. There will hardly
i
be time for much progress before the Sheikh is due to
I return (20th July).
As regards (I) above, the proposed reply about
Ilawar seems the best in the circumstances. It is a

provisional decision; a final decision clearly could
not be reached without hearing Qatr's claim (if any),
and one would think that he might have a supportable
cluim, as the island is only five miles from the

mainland. If the B.F.C. get the concession of the
!
unallotted area, their rivals, Petroleum Concessions
Ltd., might be inclined to dispute our provisional
decision on Hawar, and we might then get a claim
from the Sheikh of Qatr which would necessitate a final
decision on the part of H.M.G. Qatr may of course make

a claim in any case, but it hardly soems necessary to
put it into his head by asking whether ho has one.
J.C. Walton.
8.7.36.
7173 Wt 8'J0d/ll I 10,000 MS