Page 170 - Records of Bahrain (6)_Neat
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                        158                        Records oj Bahrain

                        Confidential
                        Df)/PCN.5/G939                            7th January, 1950.

                        Dear

                             I enclose herewith a copy of a letter I have this afternoon
                        rocoivod fro:n Belgrove.
                             The postponement of the embargo is most unsatisfactory in os
                        much as 1UH. confirms that ho still intends that this Company will be
                         embarrassed in order to force a solution of the Zubara affair which,
                         as you know, was a major point of dispute between Bahrain and Qatar
                         years before A.I.O.C. obtained the oil concession in Qatar. I dp not
                         see what I can say to H.H. should ho coll on me to discuss the matter
                         as Delgrave suggests in hie letter. Tho Zubara affair has nothing to
                         do with the Company and on evory occasion that this subject has bocn
                        raised by H.H. no opinions or suggestions have been given and the only
                         reply that has been made was to the offeot that this was a question
                         solely for H.M.Q. and that tho Company had no right to interest itself
                         in a privato dispute between the Hulors of Bahrain and Qatar.
                             If no solution can be made to tho present un]iappy state of affairs,
                         I propose to refer Hie mutter to your arbitration under clause 9 of the
                         lease agreement entered into by this Company with the Government of
                         Bahrain, but boforo doing so I would prefer to discuss this matter with
                         you in case thore may be other aspects which are unknown to me.
                              I understand from Jackson that you informed hint that all cor­
                         respondence on this subject should now be exchanged with the Political
                         and that no direct approach should bo made with the Bahrain Government.

                                                           Yours sincerely,





                         G. J.Pelly, Esq., O.B.E.,
                         The Agency,
                         Bahrain.

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