Page 240 - Records of Bahrain (7) (ii)_Neat

630 Records of Bahrain

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tigrood to botwoon tho Contracting Company and Govornmont*
It may bo arguod that In recent yoara drastic chances

have boon mado in acrooinonts botwoon Governmonts and oil
Companios when tho acrooinonts contained no provision for
revision, Tho Government do3iros a clause in tho new
agreement making aucli a revision possible, Tho original

Bahrain concession prQvidcd for a revision of tho terms
after a definite period, Tho Government now asks that
instead of u rovision boing considered after a poriod of
time it should be rightly considered if conditions in
I
I neighbouring oil States chango drastiscally.
8, In original contract a dato was set for tho revision

of certain terms* From this dato tho oil royalty was
raised from Us*3/6 per ton to Rs.10/- per ton, It may
. be reasonably supposed that negotiations wore in progress
between the Government of Saudi Arabia and Arabian American
Oil Company for a $0-90 arrangomont, Tho Bahrain Govern­
i
: ment did not know of this mid the Government agrood to
. tho increase of royalty from Us,3/0 to Rs.10/-, Last June

tho Company realized that tho payments to Bahrain woro
tooi***-
vory much 3-ow, proportionately, than thoao mado to Saudi
Arabia, Tho Company thou mado tho voluntary payraont of

Its,500,000 por month, because, it v/ouLd appear, that tho
Company roalizod that tho revision in oil royalty payments
foil far short of what It should liavo boon. It appears
to tho Government that now, by its acceptance of tho 50-5°
!
suggestion, tho Company admits that it is right that Balirain

should enjoy tho sumo 50-50 profit alluring arrangomont
which was adopted first in Saudi Arabia and later in Kuwait
and in Iraq. Tho circumstuncos warranting a 50-50 nrrange-
' rnont in Bahrain oxlstod from the timo tiiat ouch an arrungo-
! I mont was mado in Saudi Arabia. Tho Government however Is

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