Page 266 - Records of Bahrain (7) (ii)_Neat

656 Records of Bahrain
. •.
CONFIDENTIAL •V
FROM BAHRAIN TO FOREIGN OFFICE
'
IS
Cypher/OTP DEPARTMENTAL DISTUIBUTION r
E
Mr. Burrowe ). 0.35 p.m, December 31, 1953
Ho. 1062
H. 0.05 p.m, December 31, 1953
Dooombor 31, 1953
IMMEDIATE
CONFIDENTIAL •: •••
Addressed to Foreign Office telegram No. 1062 of
December 31
Ropeatod for information to Jedda, i * w
And Saving to B. 11.15.0., Washington, * •!'
• •
My despa toll 107, Bahrain Petroleum Company, ;-F^
- /
On Doceinbcr 26 the Ruler had a further long conversation . . V".
with company officials, In which he began by saying that if
they did not drill a test well in additional area (i.e. in,the
sea bod) within one, or at the most two, months he would take
this area away from them including the ax-cn in dispute with
Saudi Arabia, He ulso said they must double production in the
main island. The Compuny hud meanwhile received the approval
of their head office for structural drilling programme at
Fasht Adham, They told the Ruler one or two months was quite
impossible but that they were prepared to carry out structural
drilling and, if necessary, drill u test well in this urea. Ho
eventually said that they must do this within nine months.
Subject to approval of their head office they are proposing
to reply that, while they cannot guarantee to do the work in
this time, they will do their best and will give the Ruler
periodical progress reports. They expect that this will
probably satisfy him [? gp. omitted] time being. But, in the
course of the conversation, he indicated he was quite ready to
go to arbitration if necessary,
2. As regards the rate of present production the Company
took the opportunity to tell the Ruler that, so far from being
increased, the rate must decrease after about K or 5 years.
He said that he did not trust their arguments and wanted to have
an independent check on their data, which should be carried
out by independent [gfrs,--omtTlea j by [gpdriandec. ] Mr. Thornburg
and Sir^K, Fraser. ,-The Company said that they would gladly .accept
fthis. The Company' are concerned'at the deterioration of the
Ruler s attitude towards them.
3. I have since received a somewhat terse letter from
the Ruler mainly complaining at the delay in the settlement
of Zubarah question, but also referring.to delimitation of 'the.*;•
sea bod and to hi$ interview at the Foreign Office during the
summer.
7 4. It has been learnt here on good authority that
4 ^King- Saud has arrived at llofuf und is moving very shortly to
\ ->)phahran, where he will 6tay for some time (60 Aramco houses
having been.:,..