Page 292 - Records of Bahrain (7) (ii)_Neat
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682                        Records of Bahrain







                                         CONFIDENTIAL


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                    ouoh olncc hio illness,   He looked In excellent health and
                   was certainly In a happy mood.    In the absence of the
                    Political Resident, Morgan Man and I, and our wives were
                    invited, and a number of American and English couples and
                    personalities, but comparatively few Bahrainis,    During the
                    final conversation the Ruler expressed to mo hio satisfaction
                    with Mr, Arnold's promises and asked me to aay that he hoped
                    work off-shore would begin within a year.
                    7.    The company's reassurances do not, on the face of it,
                    seem to differ from those given telegraphically in June last
                    (see my letter dated’June 25), but of course BAPCO has bought
                    time by offering to relinquish a part of ito marine areas;
                    the poroonal visit of the President and hio direct verbal
                    undertakings undoubtedly seem to have made Ills Ilighneos
                    happier, at least for the moment,    Mr, Arnold will also have
                    acquired a closer acquaintance of the present position here,
                    and one presumes that he and his companions will succeed In
                    persuading the other; directors in New York to do as the Ruler
                    desires,
                                                  ;
                    0.     Mr. Smith has jjuet informed me that His Highness* has
                    decided to sign tho pecond copy accepting the area relinquished
                    by BAPCO without, after all, waiting for our reply to him
                    regarding the boundary of the sea-bed with Qatar, ao he at
                    first proposed to do|. He has also, as expected, signed the
                    extension of the royalties agreement refex'red to in paragraph
                     6 of my letter dated December 3*
                     9.    I am sending a copy of jthis letter to the Rooidency.
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