Page 246 - Records of Bahrain (7) (ii)_Neat

636 Records of Bahrain

GOVERNMENT OF BAHRAIN.

27th Muharrara, 1372.
16th October, 1952.

Her Brifttannic Majesty's Political Agent,
The Agency,
Manama, Bahrain.

Sir,
I have the honour to inform you that His Highness has
instructed me to make known to you the substance of recent
conversations that have taken place with the representatives
of the Bahrain Petroleum Company Limited, with reference to
His Highness' proposed Income Tax Decree and the Agreements
bearing thereon.
The conversations referred to have taken place in consequence
of the desire of His Highness to make certain changes in Ills'
proposed Law and in the agreements.
I have the honour to enclose with this letter a list of
: amendments in the Tax Law and certain of the Draft letters,
» also amended, which the Company has now referred to London.
i In so doing I am instructed to make the following observations
Costs, Expenses and Losses.
It was His Highness' understanding with the Company that
deductions made in arriving at profits for Tax purposes should
be limited to the costs of extracting the oil from the ground
and conveying it to the tanks where it is gauged, such costs
■ amounting at the present time to approximately Rs6:8 a ton.
His Highness has pointed out to the Company that the present
provisions, (and in particular Article 3 (d) thereof), are
of a generality which far exceeds such understanding, After
discussing the matter with the Company, His Highness asked
that a letter be written to Him by the Company assuring Him
that deductions maj(e in arriving at income should at all times
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