Page 101 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Article 48
buildSs^'wharve"^1 cll^n v™"1 ^" hfC lFmin#d. all structures, materials.
Unno/firiiS f’.i °C^S’ p,crs’ Jctties» breakwaters, harbor works, pipelines
hereof mi ! (othcI lh?n thosc erected as hereinabove provided in Article \\
Uoa facintie al^an ^f3' Pn°CCSsi,'e facil,tics' railroads and other transporla-
f!®,;'”''"®' aircraft, ools, ofliccs, maps, water, sanitary, power and electrical
use in said Nemral'zone «qu,Pm.cnl. ,suPP|ies and property used or held for
Jiff JfJ?1?. N tj!u°Jl n S?udl Arab,a. m connection with or incidental to
ho S °if Company hereunder, shall be and remain the property of
the Company, whether or not the same shall be permanently affixed to the land.
Upon the termination of this agreement, cither by mutual consent of the parties
hereto, or by reason of the abandonment and relinquishment of the rights here­
under by the Company pursuant to Article 46 hereof, the Company shall retain
ownership of and may remove from said Neutral Zone and Saudi Arabia all
movables owned by it, and all immovable property of the Company within the
Neutral Zone or Saudi Arabia shall be and become the property of the Govern­
ment. If this agreement shall terminate by reason of the expiration of the term
fixed for its duration or by reason of the default of the Company, all property of
the Company within the Neutral Zone or Saudi Arabia, whether movable or
immovable, shall be and become the property of the Government. Producing
wells and borings shall be handed over in reasonably good order and repair. All
other such property shall be handed over in reasonably good order and repair,
ordinary wear and tear excepted. All such property shall be handed over and
delivered without the necessity of any notice or demand therefor by the
Government.

Article 49
Neither the Company nor any property imported into, used or held for use
in said Neutral Zone or in Saudi Arabia in connection with, or incidental to,
operations by the Company hereunder or produced, sold or exported as a part
or or as a result of such operations shall be subject to any taxes or charges whatso­
ever by or on behalf of the Government; and the Company and all activities
carried on incidental to developing and exploiting said concession and drilling for,
producing, refining, processing, transporting, selling and exporting oil and other
petroleum and gas products and by-products in connection therewith and
importing materials, equipment and supplies for use incidental thereto, or for use
or incidental to the exercise of the rights granted to the Company hereunder or the
performance by the Company of its obligations hereunder, and all of the afore­
said property of the Company shall be free from all taxes, imposts, duties, excises,
tariffs, restrictions on import or export or charges of any kind, provided, however,
that the Government may impose, with respect to the ownership or operation by
the Company, within said Neutral Zone or Saudi Arabia, of automotive, aero­
nautical or marine equipment, fees, at the same rates charged within Saudi Arabia
in respect of the ownership and operation of such equipment by others, for the
annual registration or licensing of such equipment; and provided further, that
such freedom from taxation shall not pertain to the personal property of employees
of the Company or to property sold for their personal requirements, but that
neither such employees nor their property nor property so sold or such sale
thereof shall be taxed at any different rates than are applied in the Neutral Zone
and Saudi Arabia in respect of others or their property or such sales; provided
further that, in so far as the Company may operate or have facilities outside
said Neutral Zone, it shall be subject to municipal taxes in those municipalities in
which such operations are conducted or in which such facilities are located of the
same nature and at the same rates as all other persons or corporations conducting
operations or having facilities in such municipalities; and provided further, that
anv materials or property imported free of duty may not be sold within either said
Neutral Zone or Saudi Arabia without first paying the import duty which would
be payable in respect thereof if imported for such sale; and provided, further,
that a7tax or taxes may be levied by the Government against the Company, on
account of its operations hereunder, if and only to the extent that a credit of the
f,,11 amount of such tax is allowed against the amount of any tax otherwise payable
Lv thP Company to any other Government, it being the intention of the parties
hereto that such tax may be levied if, and only to the extent that, no part of the
burden thereof is borne by the Company.