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however give an undertaking in writing with reference to one of the articles of the
concession that he would obtain the approval of His Majesty’s Government before
entering into any negotiations with a bank.("°)
89. On November 16, 1951, the Ruler agreed in writing that the concession
of 1945 should be interpreted as covering the sea-bed outside the territorial waters
and in return the company increased the annual payment under the concession to
Rs. 75,000.0

(g) Ras al Khuimah
90. In December 1938 the Ruler of Ras al Khaimah granted an exploration
permit to Petroleum Development (Trucial Coast) Limited for 2\ years in the
first place. The permit was revised and extended in 1941. On June 21, 1945, the
Ruler granted a concession to Petroleum Concessions Limited, with right of transfer
to Petroleum Development (Trucial Coast) Limited, covering the State of Ras al
Khaimah, including its islands and territorial waters, and providing that when the
territorial limits of the State had been determined the area covered by the
concession would be coterminous with the limits so determined.C2) There is a
provision relating to the possible formation of a Neutral Zone identical with that
in the Umm al Qaiwain concession (paragraph 88 above). The annual payment
to be made to the Ruler until oil is discovered in commercial quantities is
Rs. 60,000. There is no obligation to start drilling within a specified period and
no drilling has yet been undertaken. The company entered into a Political
Agreement with His Majesty’s Government in March 1938 in respect of any
concession which might subsequently be obtained for Ras al Khaimah.C1) It was
not communicated to the Ruler. In 1946 the latter gave an undertaking regarding
the opening of a bank similar to that obtained for Umm al Qaiwain (paragraph 88
abovehC)
91. On August 26, 1952, the Ruler agreed in writing that the concession of
1945 should be interpreted as covering the sea-bed outside the territorial waters
and the company undertook in writing to increase their annual payment to
Rs. 90,000 i-.n

(/?) Fujairah
92. In August 1953 the Ruler of Fujairah granted Petroleum Development
(Trucial Coast) Ltd. an exploration permit for three years on payment of £1,500
in respect of the first year and £281 5s. 0d. in respect of each succeeding three
months.(**) The permit covers the whole of the State including its islands and
territorial waters and the company have the right to take up a concession for
the area at any time during its currency or the currency of any extension on terms
to be agreed between the parties. In a subsidiary document the company have
agreed to make the prescribed payments in Indian rupees for as long as the present
freedom of exchange between the Indian rupee and sterling permits.C*7) Her
Majesty’s Government have not given their formal approval to the grant of the
permit pending the conclusion of a Political Agreement with the Company.

VIII.—Foreign Relations
(a) General
93. All the Trucial States have undertaken to conduct their foreign relations
through Her Majesty’s Government and none of them has shown any desire to
evade this obligation. No foreign Power has as yet asked for representation on
the Trucial Coast and so far as is known the Arab League has not attempted to
communicate with any of the Rulers.
(,0) No. 16(6) IV. O.A.C.
(*') No. 15 (a) and (6) IV, O.A.C.
(«) No. 17 IV. O.A.C.
(”) No. 18 IV. O.A.C.
(<") No. 18 (6) IV. O.A.C.
(•*) No. 17 (a) and (6) IV. O.A.C.
("•) No. 19 IV. O.A.C.
(•') No. 19 (a) IV. O.A.C.