Page 139 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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until 1932, when an employee of Major Holmes paid a visit to Qatar. On this the
Anglo-Persian Oil Company again turned their attention to Qatar and in August
1932 they concluded an agreement with the Ruler which gave them exclusive
exploration rights for a period of two years and an exclusive option to apply for
a concession within that period in return for a monthly payment of Rs. 1,500/-C)
The agreement was approved but the Ruler was reminded that he should have
sought the advice of the local political authorities before entering into it.C7)

26. Negotiations for a concession were started in 1933 and continued for
nearly two years. There was evidence that during that time communications
passed between the Ruler and the Standard Oil Company of California and that
Ibn Saud was bringing pressure to bear upon the Ruler to grant a concession to
that company, and the Ruler had to be reminded of his obligation under Article 5
of his Treaty and told that His Majesty’s Government would not agree to the
grant of a concession to a company that was not at least partly British. Progress
in the negotiations was held up for many months by the Ruler’s insistence on a
guarantee from His Majesty’s Government of protection from landward aggression.
In April 1934 the Political Resident informed him in writing that His Majesty’s
Government were prepared to give him protection on land in addition to the
protection on sea which was already given to him.C") In spite of this negotiations
were not resumed until the following year but meanwhile the Anglo-Persian Oil
Company obtained an extension of their option up to April 13, 1935. This period
was subsequently extended to May 4, 1935. Agreement was reached between the
company and the Ruler regarding the terms of the concession at the end of April
but the latter would not sign an agreement until he had received written assurances
from the Political Resident on the subject of protection and the recognition of his
son Hamad as heir-apparent. These assurances were given on May 11 and the
concessionf9) was signed on May 17. The question of protection and the
recognition of Hamad, and also those of jurisdiction, facilities for the Royal Air
Force and the position of the southern boundary of Qatar, all of which arose in
the course of the negotiations, are dealt with in detail elsewhere. A Political
Agreement^0) between His Majesty’s Government and the company was signed on
June 5. A copy of it was communicated to the Ruler who agreed in an exchange
of letters!41) to take cognisance of it.
27. The concession is for 75 years and covers the whole area over which the
Shaikh rules and which is marked on the north of . the line drawn on the map
attached to it. This line which is known as the “ concession line ” is discussed
separately (paragraph 21 above). Rs. 4,00,000 was paid on signature and
Rs. 1,50,000 was payable annually for the first five years and after that Rs. 3,00,000
annually until the end of the concession. The royalty fixed was Rs. 3/- per ton.
The concession is accompanied by two letters from the oil company’s
representative. The first!4*) of these contains four miscellaneous undertakings, of
which one is for the free supply of certain quantities of petrol and kerosine to the
Ruler, and the second!43) promises that the company will not operate on the land
which surrounds the Ruler’s castle at Dohah.
28. Throughout the negotiations it had been understood that the
Anglo-Persian Oil Company would in due course transfer the concession to the
Iraq Petroleum Company. A company called Petroleum Development (Qatar)
Ltd. was formed to operate the concession as an associate of the Iraq Petroleum
Company and in October 1936 the Ruler agreed to its taking over the concession.
It worked in co-operation with the Iraq Petroleum Company’s organisation in
Bahrain, which is known as Petroleum Concessions Ltd., and the head of this
organisation’s office in Bahrain was until recently its Chief Local Representative
under the Political Agreement. Early in 1937 an agreement!44) was signed between
His Majesty’s Government and the new company whereby the latter agreed to

(»•) C.O. to F.O. 98116/32 of October 18. 1932 (EA 5442/3372/91 of 1932).
(”) C.O. to F.O. 18216/33 of May 29. 1933 (E 2803/156/91 of 1933).
(3<) I.O. to F.O. P.Z. 2462/34 of April 12. 1934 (E 2292/81 /91 of 1934).
(3») No. 1 HI. O.A.C.
(4W) No. 2 111, O.A.C
(4I) No. 2 (a) and (b) III, O.A.C.
(4I) No. 1 (a) III, O.A.C.
(43) No. 1 (b) III. O.A.C.
(44) No. 3 III-. O.A.C.