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than half of the oil in the Persian Gulf is now being produced by American Shaikh Isa, when he granted the original concession to the Eastern
General Syndicate, stipulated that it should not be alienated to a non-
oil companies, although in the past America had taken only the most
cursory interest in the Persian Gulf. British firm. When the matter came before his successor, Shaikh Hamed,
I have never heard a convincing explanation as to why British oil Bahrain’s finances were in a precarious state owing to the slump in the
companies were unwilling to venture when they could have acquired the pearl trade; therefore, although he would have preferred to have a
concessions outright, or worked in conjunction with the Eastern General British company operating in his country, as no British company showed
Syndicate, on extremely moderate terms. There had been a surface survey any interest in Bahrain the Shaikh agreed to the transfer of the concession
of Bahrain by oil geologists who were not over-optimistic about the to an American company. He hoped that this would speed up the pro
possibility of finding oil, but Holmes, who was himself something of a duction of oil—if oil was to be found. After lengthy negotiations between
geologist, never wavered in his belief that there was oil in Bahrain, and the Colonial Office and the oil companies it was finally agreed, in August
he was proved to be right. It is possible that the Anglo-Persian Oil Com 1930, that a, new company should be formed, to be called ‘The Bahrain
pany did not believe that there was oil, or the company did not want Petroleum Company’ (BAPCO), which would be incorporated in
to find oil, or possibly it was thought that to explore for oil in new areas Canada, thus giving the Standard Oil Company of California, operating
in the Gulf would cause political difficulties with the Persian Government, in Bahrain, camouflaged British nationality. The fact that the company
especially in Bahrain, which was claimed by Persia. If Holmes had been was registered in Canada has never been of the least interest to the people
strongly backed by the British Government and if a British oil company of Bahrain, who regard BAPCO as an American company, which is
had ventured to take the risks which were taken by the Standard Oil what it is.
Company of California how different would be the oil map of the Gulf BAPCO started operations at the end of 1931 in the middle of the
today! Holmes was frequently treated as persona non grata by the British island, near Jebel Dukhan. The coming of the oil company made very
in spite of the high estimation with which he was regarded by the Arabs, little stir in Bahrain. It aroused more interest among Europeans than
especially by the Shaikh of Bahrain, who was grateful to him not only among Bahrainis. Neither the Shaikh, nor I, nor anyone else, realized
because he was responsible for finding oil but also because it was he who what a far-reaching social, political and economic upheaval would take
provided Bahrain with its artesian water supply. place if—and it was a very large ‘if’—oil was found. Bahrain was the first
There are, however, advantages in having American oil companies, oil field to be developed in the Gulf; the Iraq Petroleum Company and
with their enormous investments, in Bahrain, Kuwait and Saudi Arabia, the Anglo-Persian Oil Company had been established for many years and
working in some cases side by side with British oil companies. For nobody in Bahrain had experienced the sudden incursion of a big
material and political reasons the Americans are as anxious as we are to Western industry into a comparatively primitive Eastern state. In the be
preserve the peace of the Gulf and to maintain the independence of the ginning the company did not employ many men on their drilling opera
states. Although some of their methods and ideas are foreign to us, and tions; it was later, when the refinery was built, that BAPCO provided
friction and disagreements inevitably occur, yet as long as there is Anglo- work for such a large proportion of the population.
American accord in world politics the presence of Americans in the Gulf The arrival of the ‘oil men’ was anticipated with some apprehension
is of advantage both to the Arabs and to the British. It is often suggested by the European community. People had heard stories of the ‘goings on*
that American oil companies meddle in politics. In Bahrain I had every of American drillers working for the Anglo-Persian Oil Company at
opportunity of watching the oil company’s activities at close quarters. Abadan and expected them to behave like cowboys in a Western film.
Never, during the many years that I was in Bahrain, did the Bahrain They were a tough lot, but they must have been carefully picked for they
Petroleum Company interfere in local politics or in Gulf politics. From behaved extremely well. It was not until later, when their numbers were
the time that the company started operating in Bahrain there was corn- greatly increased and included a large proportion of British workmen
plete co-operation between the Government and the company; if any from the north of England, that occasional incidents happened.
matters arose which had a political flavour, the company management Qne difficulty was the colour question. If a bunch of oil men got into
invariably consulted me as to what course they should pursue. the bazaar and started to' get rough it was the duty of the police to deal
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