Page 277 - Records of Bahrain (7) (ii)_Neat

Petroleum affairs 667

(§§)
Dos patch No. 41 / British Residency,
Bahrain.
(1531/2/0/55)
April 7, 1955.
CONFIDENTIAL

E

Sir,
With reference to your despatch No.
63 (BA 1534/4) of April 1, I have the honour
to report that Mr. Skinner, Vice President
of the Bahrain Petroleum Company, v/ho has just
heen on a visit to Nov/ York to consult with

the Board of the Company, informed me on
April 6 that the Company's thoughts with regard
to the refinery chargo payable to the Bahrain
Government were moving along almost exactly
the same lines as those recommended by you.
The Arabian-American Oil Company wore negotiating

a "packago deal" with the Saudi Arabian Government
of which one element was expected to bo that
the Company would charge its purchasers 8 cunts
a barrel as a processing fee for refinery operations
in Saudi Arabia. Tho Saudi Government v/ould

get half of this amount in taxation.

The Right Honourable
/While
Sir Anthony Eden K.G., M.C., M.P.,
etc., etc., etc.,
Foreign Office.

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