Page 267 - The Persian Gulf Historical Summaries (1907-1953) Vol II
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                                                   (Hi)
                                              (Paragraph 132)
                 Letter, dated August 19 1930, from the Iraqi Minister for Foreign Affairs to the
                                        High Commissioner in Iraq
                     I have the honour to acknowledge the receipt of your Excellency’s letter of
                 to-day s date, relative to the method of dealing, in the list of international
                 obligations devolving upon Iraq under article 8 of the Treaty of Alliance signed
                 on the 30th June, 1930, with the question of the immunity from taxation enjoyed
                 by the Sheiks of Mohammcrah and Koweit in respect of their date gardens
                in Iraq.
                     I have the honour to inform your Excellency in reply that the procedure
                indicated in the second paragraph of your letter is acceptable to the Iraq
                Government.
                                                                  T have, &c.
                                                                       NOURY SAID.
                                                   (iv)
                                             (Paragraph 135)
                 Letter, dated July H 1936, from His Majesty's Ambassador, Bagdad to the Iraqi
                                        Minister for Foreign Affairs
                    For some years past, and more especially since the establishment of Iraq as an
                independent State, it has been the constant endeavour of His Majesty’s Government
                in the United Kingdom to arrive at an agreed solution, with the Iraqi Government,
                of the problems arising from the properties in Iraq belonging to the Shaikhs of
                Koweit and Mohammerah.
                    2. In 1914, His Majesty's Government pledged their word that these
                properties would remain in the possession of the Shaikhs and their descendants
                without being subject to the payment of taxes or imposts. These pledges have
                been, and continue to be matters of no little concern to His Majesty’s Government,
                who are anxious that arrangements should be made, with the consent and good
                will of the Iraqi Government, whereby full effect may be given to them as soon as
                possible.
                    3.  Many proposals with this end in view have been discussed between our
                respective Governments but have proved abortive, and His Majesty’s Government
                have now decided that the time has arrived to make a fresh attempt, without
                prejudice to the views which they and the Iraqi Government have hitherto
                expressed, to overcome, in a practical manner, the difficulties that have arisen.
                    4.  On this basis, as a result of prolonged and careful examination, His
                Majesty’s Government have now prepared new proposals which involve very
                considerable concessions to the views of the Iraqi Government, and to which I have
                the honour to invite Your Excellency’s favourable attention.
                    5. The problems involved concern: —
                    (a)  the possession of the actual areas in question;
                    (b)  taxation.
                    6. As regards (b), the proposals of His Majesty’s Government are the
                following. They are prepared to make no further claim against the Iraqi
                Government for the exemption of the properties of the two shaikhs from
                taxation in Iraq, provided that the Iraqi Government will, for their part,
                    (a)  give a formal undertaking, in writing, to make no claim for arrears of
                          taxation against either shaikh in respect of their properties in Iraq, arid
                    (b)  provide a formal written assurance that no discriminatory taxation will
                          be imposed upon the properties of either in future.
                    7.  As regards the possession aspect of the matter, His Majesty’s Government
                nroDOse as an integral part of a comprehensive settlement, that all uncertainties
                Should now be removed in regard to the boundaries of the shaikhs’ lands in Iraq
                oUh 3 formal title be awarded to them, through the application, to the areas in which
                the lands are situated, of the procedure laid down in the Land Settlement Law of
                May 23rd, 1932.
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