Page 95 - Historical Summaries (Persian Gulf - Vol II) 1907-1953

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welcome to what they could find,(",h) though he subsequently modified this state-
ment. The Ruler was accordingly informed that His Majesty’s Government did not
insist upon confining the concession to a purely British concern, that he was at liberty
to dispense with this condition if he wished. In June 1932 the Eastern and General
Syndicate submitted another draft concession and in September the Anglo-Persian
Oil Company also submitted a draft concession. His Majesty’s Government
compared the two concessions and sent their views on them to the Political Resident
with instructions to communicate them to the Ruler and to leave the choice between
the two companies to him.(,H’) Meanwhile the United States Government continued
to exert pressure in favour of American oil companies and it is interesting to note
that the United States Ambassador in London at the time was the Chairman of
the American oil group which was interested in the concession. The Ruler refused
to be hurried in his choice between the two companies and in April 1933 instructed
Holmes to prepare concessions reserving 1,200 square miles of his territory for
the British Company and 400 square miles for the Americans. There was reason
to believe at the time that he was also contemplating granting his share of the
Neutral Zone to the Americans if Ibn Saud took similar action. At the end of
the year the Anglo-Persian Oil Company reached an agreement with Gulf Oil
Company of America to share the Kuwait concession on a fifty-fifty basis and
: to form a company to be called the Kuwait Oil Company for this purpose. His
Majesty’s Government raised no objection.
88. Negotiations with the Ruler for a concession started early in 1934 and
in March a Political Agreement(190) was signed between His Majesty’s Government
and Kuwait Oil Company. A copy of it was given to the Ruler and approved by
him in writing.(m) As he objected to certain references to this agreement in the
draft concession under negotiation, these were embodied in an exchange of
letters(1,=) between the Political Agent and the Ruler and subsequently
communicated to the company, who accepted the arrangements made as binding
on them.(193) The question of the appointment of a Chief Local Representative for
the company caused difficulties between His Majesty’s Government and the Ruler.
The latter wished to have the right of choosing the Chief Local Representative but
eventually gave way after His Majesty’s Government had agreed to consult him
before approving the appointment^194) The negotiations between the Ruler and
the company were prolonged, and in September the Ruler, without consulting His
Majesty’s Government, agreed in writing to grant a concession to another entirely
British Company called Traders, Limited, provided His Majesty’s Government
approved.(19*) This company’s case was strongly supported by Lord Lloyd but in
December the Ruler, as he had heard nothing further from it, decided to grant the
concession to the Kuwait Oil Company. The agreement^90) was signed on
December 23 after His Majesty’s Government had accorded their formal approval
of this action to both the Ruler and the company.(197)
89. In April 1934 the Political Agent had informed the Ruler that His
Majesty’s Government expected him to consult them before he opened negotiations
with any company and in April 1935 the Political Resident wrote to the Ruler
to the effect that His Majesty’s Government took a serious view of his disregard
of their wishes (by offering a concession to Traders, Limited, without consulting
them) having regard both to his treaty obligations and the pains they had taken
to safeguard his interests throughout the long negotiations^1”) As the incident had
called attention to the extremely loose wording of the oil agreement of 1913(199) the
Political Resident in a separate letter informed him that, in order that the position
should be expressed in a clear and unambiguous form, His Majesty’s Government
considered it desirable that he should undertake not to grant concessions of any
(»••) (E 1897/121/91 of 1932.)
(»•*) C.O. to F.O. 98026/32 of December 21, 1932 (E 6830/121/91 of 1932).
(»••) No. 2 II, O.A.C.
(»•») No. 2 (a) II. O.A.C.
I.O. to F.o/ P.Z. 5189/34 of October 12, 1934 (E 6824/160/91 of 1934).
(*•«) I.O. to F.O. P.Z. 6629/34 of October 26. 1934 (E 6570/160/91 of 1934).
(»•*) I.O. to F.O. P.Z. 7722/34 of December 17, 1934 (E 7570/160/91 of 1934).
f‘”) LO. to F.O. P.Z. 7813/34 of December 24, 1934 (E 7671/160/91 of 1934).
(»*•) i'O. to F.O. P.Z. 3299/35 of May 15, 1935 (E 3010/19/91 of 1935).
(1#t) No. 6 II. T.C.