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was considered by His Majesty’s Government but it was decided that the matter
must rest until the negotiations were completed.
40. The grant of the concessions raised the questions of the future
administration of the territory, of the exercise of jurisdiction within ;ts limits and
of the demarcation of its boundaries. The two latter questions are dealt with
elsewhere (paragraphs 172 and 53-56 below). Various suggestions were made
about the administration of the Zone. In 1949 lbn Saud wrote to the Ruler
suggesting the setting up of an Administrative Council composed of two delegates
from each Government, the senior delegate of each Government to preside in
turn.(63) The Ruler replied suggesting that the matter should be postponed until the
results of the oil companies’ explorations were known.(0f) Abdullah al Salim
immediately before his accession in January 1950 expressed the opinion that the
Saudis should take over entire responsibility for the administration of the Zone and
that Kuwait should rest content with taking her share of the profits. He repeated
this suggestion after his accession but subsequently stated that he left in entirely to
His Majesty’s Government to settle the matter and made it clear that his chief
anxiety was to avoid friction with lbn Saud.(67) His Majesty’s Government at this
time, although they would have preferred partition, considered it impracticable and
favoured a modified form of the joint Administrative Council proposed by lbn
Saud.C8) Various other suggestions were considered including one for partition for
administrative purposes and one which was advanced by the American Independent
Oil Company that the Ruler of Kuwait and lbn Saud should each exercise authority
over his own nationals and concessionaries, matters involving both being dealt with
by a joint tribunal, but as for a long time no oil was found and nothing occurred in
the Zone calling for administrative action, and as the Saudis did not raise the
question again, it was decided to let the whole matter rest.(*°)
41. In July 1953 Her Majesty’s Government formulated a fresh scheme for
the administration of the Zone based on the proposals put forward by lbn Saud
to the Ruler of Kuwait in 1949 and suggestions made by Mr. Peyton, the Pacific
Western Oil Corporation’s representative at Jedda.C0) The administration was to be
carried out by a neutral Agent assisted by an Advisory Commission of four
members, two from Saudi Arabia and two from Kuwait. The Saudis were to
exercise jurisdiction over their own nationals and concessionaries and over the
nationals of certain neutral Muslim States, and the Ruler, or when appropriate
Her Majesty, over Kuwait nationals and concessionaries and nationals of other
neutral States. Joint Courts were to be set up for mixed cases. The Political
Resident and Her Majesty’s Ambassador at Jedda concurred in the scheme. It
was not. explained to the Ruler of Kuwait but the Political Agent thought he would
probably accept it.(n) He had previously shown himself opposed to joint
administration and seemed to favour a scheme whereby the Zone would be
administered by Kuwait and Saudi Arabia in alternate years, which appears to
have been his interpretation of the proposals made by lbn Saud to his predecessor
in 1949.(Ta) As however the American Independent Oil Company and the Pacific
Western Oil Corporation, in spite of the fact that oil had been struck, came to an
agreement that the former should continue to operate on behalf of both
companies,C3) there appeared no urgency to make any special arrangements for the
administration of the Zone and no approach had been made to the Saudis on the
basis of the scheme by the end of 1953.
42. In December 1953 when the Ruler of Kuwait paid a visit to King Saud
to offer condolences on his father’s death the following arrangement was arrived
at between them: “ Having taken note of the agreement reached between the
American Independent Oil Company and the Pacific Western Oil Company on
the export through Kuwait of oil for the Neutral Zone, the King and the Ruler
decided that, if it proved necessary, they would appoint ad hoc officials to discuss
the affairs of the Neutral Zone.”(7<) The attitude to be adopted by Her Majesty’s
Government towards this development had not been decided by the end of 1953.
(") Kuwait to F.O. F/155 (S/17) of December 10, 1949 (E 15108/1534/91 of 1949).
(“) Kuwait to F.O. F/166 (S/17) of December 15, 1949 (E 15297/1534/91 of 1949).
(*') Tel. from Kuwait to P.R. 112 of April 24. 1950 (EA 1532/18 of 1950).
(M) Tels. from F.O. to P.R. 16 and 17 of January 11. 1950 (E 14752/1534/91 of 1949).
(") F.O. to P.R. EA 1532/31 of August 30. 1950.
C°) F.O. to P.R. Despatch 114 of July 10, 1953 (EA 1083/42 of 1953).
(7‘) Kuwait to F.O. 214/44/53 of August 24. 1953 (EA 1083/53 of 1953).
<”> Tel. from Kuwait to P.R. 186 of July 15. 1953 (EA 1083/43 of 1953).
<") Kuwait to F.O. 214/59/53 of November 8. 1953 (EA 1083/64 of 1953).
( ) Kuwait to F.O. Despatch 7 of January 25. 1954 (EA 10325/1 of 1954).