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(b) Investment shall be arranged with due regard to liquidity in order to ensure
as far as may be practicable that funds shall be readily available if and
when We should require them.
(c) The detailed selection of the particular sterling investments in which the
funds shall be placed shall be left to the judgment of the Board, which
will be in day-to-day contact with the London market.
(d) The Board should ensure that investment and disinvestment arc conducted
in such a way as to avoid as far as possible any unwelcome effects on
the London Stock Exchange.
(e) In making investments the Board shall have due regard to market
conditions prevailing from time to lime.
(/) The Board shall report to Us quarterly on the state of Our investments.
(8) The accounts of the Board shall be audited once a year by a firm of
Chartered Accountants. We propose to appoint Messrs. Peat,
Marwick, Mitchell and Co. as auditors in the first place.

3. The Governor of the Bank of England has offered to place at Our disposal
special facilities, in the form of an account at the Bank of England. We have
accepted this offer which We understand will give access to the services and advice
of the stockbroker to Her Majesty’s Government in the United Kingdom. The
Board should avail themselves of these services and advice.
4. All money and securities will be ncld for Our account though some
delegation of authority by Us is required in order that the Board may have powers
to act on Our behalf. This is covered by the accompanying formal document
providing for the establishment of the Board.
(Signed) SHAIKH SIR ABDULLA AL-SALEM
AL-SABAH,
Ruler of Kuwait.
(iv)
(Paragraph 20)
Letter, dated February 23 1953, from the Political Agent, Kuwait, to the
Ruler of Kuwait
I have received Your Highness’ letter informing me of the arrangements you
have decided to make for the investment of that part of the surplus sterling
revenue of your State which is not required for current expenditure. I am
instructed by Her Majesty’s Government to confirm that they consider that the
arrangements described in the letter and the enclosures are satisfactory for the
purpose for which they are intended.
I am also instructed by Her Majesty’s Government to confirm that the income
which will arise from sterling investments made by the Investment Board on Your
Highness’ behalf will not be liable to United Kingdom Income Tax. Further,
death duty in Great Britain will not be charged on funds and investments held
in Great Britain which are the property of Your Highness’ State.

APPENDIX D
Correspondence on the Demarcation of the Iraq-Kuwait Frontier—1940 and 1951

(i)
(Paragraph 45)

dated October 7 1940, from His Majesty’s Ambassador, Bagdad, to the
Letter,
Iraqi Minister for Foreign Affairs
T have the honour to inform you that my Government consider it desirable
1 fta iraq and Koweit should be demarcated and I have
that the frontier between to the Iraqi Government that arrangements
SS'VZTZo &CTU d,„