Page 274 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

259
(ii)
(Paragraph 192)
Notification by the Ruler of Kuwait granting the right of search
for arms, dated May 24 1900

Be it known to all who see this that British and Persian vessels of war have
permission to search vessels carrying their and our flags in Kuwait territorial
waters and to confiscate all arms and ammunition in them if these arms and
ammunition are intended for Indian or Persian or Kuwait ports. Kuwait vessels
found in Indian and Persian waters by British and Persian vessels of war suspected
to contain arms and ammunition for Indian, Persian and Kuwait ports are liable to
be searched by the said vessels and all such arms and ammunition found in them
will be confiscated. i

APPENDIX O

Banking Agreement between the Ruler of Kuwait and the Imperial Bank
of Iran—1941
(i)
(Paragraph 195)
Agreement, dated December 18 1941
In the Name of God The Merciful.
This is an Agreement made at Kuwait on the 18th day of December in the
year 1941 corresponding to 29th Dhil Kadah 1360 between His Highness Shaikh
Sir Ahmad al Jabir as Subah, Knight Commander of the Most Eminent Order
of the Indian Empire and Companion of the Most Exalted Order of the Star of
India, the Shaikh of Kuwait in the exercise of his powers as Ruler of Kuwait
on his own behalf of his heirs and successors in whom is or shall be vested for
the time being the responsibility for the control and government of the State
of Kuwait and the Imperial Bank of Iran a Company registered in Great Britain
under the Companies Act, 1929,* its successors and assigns (hereinafter called
“ the Bank ”).
Article 1.—(a) The Bank is to undertake banking transactions on behalf of
the people of Kuwait on any place abroad.
(6) The Bank should charge a reasonable rate of exchange on drafts.
(c) The rate of interest chargeable by the Bank should be similar to that
ruling in Iraq.
Article 2.—The recognised currency will be Indian Rupees, and the basis of
the Bank’s business should be in conformity with this currency.
Article 3.—Payments to the public should be made in the Indian legal currency,
i.e.t Rupees.
Article 4.—When the Bank wishes to export gold and silver coins or bullion
they must obtain permission from the Kuwait Government, giving details of the
shipment, the value, the means of transport and place of destination. Such
permission shall not be unreasonably withheld.
Article 5.—When the Kuwait Government requires for their own use drafts
on India for a reasonable amount, say not exceeding Rupees 1,00,000 a month,
the rate shall be at par. Drafts other than rupees shall not be calculated at a
rate worse than the best rate ruling that day.
Article 6.—If the Kuwait Government requires a loan, not exceeding
Rupees 3 lacs, for a period of . six to 12 months the Bank is to undertake to
comply with the request. The rate of interest chargeable to be 2 per cent, per
annum.
Note.—It is agreed that this article shall be in abeyance during such time
as the United Kingdom is engaged in the present war.
* The phrase “ registered in Great Britain under the Companies Act. 1929 ” was subsequently
amended to read “incorporated in Great Britain by Royal Charter. 1889.”