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60. When the original agreement was signed it was decided to ask the
company to enter into a Political Agreement with Her Majesty’s Government and
by an exchange of letters to obtain the Sultan’s agreement to any obligations which
might devolve upon him as a result of it. Drafts of the documents were prepared
and presented to the Sultan in November 1937. His reactions are reported to have
been “ startingly hostile ” no doubt on account of what he regarded as
infringements of his independence. The whole matter was discussed with him in
London in 1938 and various amendments were made in the drafts which removed
his objections to them. In the course of the discussions the Sultan was informed
that His Majesty’s Government would in due course notify him in writing of their
approval of the concession which he had granted.(oa) He objected strongly to this
on the ground that his father’s undertaking of 1923 was not binding on him
(paragraph II above). He eventually agreed to a notification being sent to him
as proposed but said he would merely file it and not acknowledge it. It is interesting
to note that later in the year one of the companies competing for the Gwadur oil
concession gave a written statement to him to the effect that any agreement between
them and him would be contingent upon the approval of His Majesty’s Government
and that he suggested that the other company which was competing should be
instructed to do the same.C3) An associate of Petroleum Concessions Limited
called Petroleum Development (Oman and Dhofar) Limited was formed to operate
both the concession for Muscat and Oman and that for Dhofar which was obtained
at the same time and in September 1938 His Majesty’s Government entered into
two Political Agreements!94) with this company, one a General Agreement, of
which the Sultan had agreed to take cognisance in an exchange of letters, and the
other a Pre-emption Agreement which was not to be shown to the Sultan. The
exchange of letters with the Sultan took place in November 1938 and he accepted
the General Political Agreement and its implications so far as he was concerned
subject to one small amendment being made in its terms.!93) The agreement was
amended accordingly and the Political Resident was instructed to inform the
Sultan that His Majesty’s Government had no objection to the concession granted
by him.D
61. In March 1951 after the abandonment of the Dhofar concession
(paragraph 64 below) the company operating the Muscat and Oman concession
changed its name to Petroleum Development (Oman) Ltd. In 1953 it appointed a
local representative to reside in Muscat.
62. Early surveys showed that there was little hope of finding oil in territory
under the Sultan’s full control, but from aerial surveys there appeared to be a good
prospect of finding it in the foothills to the west and south-west of the main Hajar
range. The company’s efforts to obtain access to this area from the north have
already been described (paragraph 41 above). When these failed they began to
examine the possibility of approaching it from the south. In 1949 a scheme was
devised for landing on the southern coast of Arabia opposite Masirah Island with
a force of 200 men and penetrating the interior via the Huqf Wadi. This has since
been known as the Huqf Scheme although its scope was eventually limited to an
area up to 50 kilometres only from the coast. The matter was first broached with
the Sultan in 1949 and received by him with enthusiasm. Discussions regarding it
continued throughout 1950 and 1951 and it was finally approved in principle by
Her Majesty’s Government in April 1952 provided that the company agreed not
to enter any area except with the Sultan’s approval and support and after he had
established himself there.!”) The Sultan insisted on a force of not less than 400
men to be paid for entirely by the company until oil was found and the royalties
payable on it were sufficient to enable the State to meet the cost. Negotiations
between the Sultan and the company followed about responsibility for expenditure
and other matters and an agreement was finally reached in January 1953 whereby
the company undertook to pay the initial cost of the transport required and up to
£150,000 a year to cover other expenditure.!”) The collection of equipment was
taken in hand and in May a Commandant for the proposed force was appointed.
(”) I.O. toF.O. P.Z. 3179/38 of May 12. 1938 (E 2714/137/91 of 1938).
(”) I.O. to F.O. P.Z. 8035/38 of December 12. 1938 (E 7435/137/91 of 1938).
(") No. 2 and 3 V. O.A.C.
(") No. 2 (a>-(c) V. O.A.C.
(’*) I.O. to F.O. P.Z. 4147/39 of July 10. 1939 (E 4939/51/91 of 1939).
(”) F.O. to P.R. EA 1537/7 of April 4. 1952.
(") EA 1201/10 of 1953.
46639 2 c