Page 112 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Whereas upon the Company concluding with the Sheikh of Kuwait (herein­
after called “ the Sheikh ”) an oil agreement (hereinafter referred to as “ the
concession ’’) certain responsibilities will devolve on His Majesty’s Government,
the Company has agreed with His Majesty’s Government, as follows, notwith­
standing anything contained in the concession: —
1. In this agreement the term Kuwait shall mean the State of Kuwait includ­
ing the islands of Kubr, Qaru, and Umm-al-Maradim, together with their respective
territorial waters. The term Neutral Zone shall mean and refer to the Kuwait-
Saudi Arabia Neutral Zone to the extent of the Sheikh’s right, title and interest
therein.
2. The Company, any transferee Company or Companies and any subsidiary
Company or Companies that may be created in connexion with the Company’s
operations under the concessions shall be and remain an American Company
incorporated in the United States of America or a British Company registered
in any of the countries of the British Commonwealth of Nations.
3. The obligations and benefits of the concession shall not be transferred
to any Company not incorporated in the United States of America or registered
in any of the countries of the British Commonwealth of Nations.
4. The employees of the Company in Kuwait or in the Neutral Zone shall at
all times so far as is consistent with the efficient carrying on of the undertaking
be United States citizens or British subjects or subjects of the Sheikh. With the
consent of His Majesty’s Government, which consent shall not be unreasonably
withheld, persons of other nationalities may be employed if in the opinion of the
Company they are required for the efficient carrying on of the undertaking.
The importation of foreign native labour shall be subject to the approval of
the Political Resident, Persian Gulf, which approval shall not be unreasonably
withheld.
5. One of the superior local employees of the Company shall be designated
chief local representative of the Company in Kuwait. The approval of His
Majesty’s Government shall be required for the person so designated but such
approval shall not be unreasonably withheld. He will be ordinarily resident in
Kuwait and will be responsible for the Company's local relations with the Kuwait
authorities. These local relations shall always be conducted through the Political
Agent, Kuwait, except as regards normal oil business, which may be transacted
through the official representative of the Sheikh referred to in the concession.
6. Subject to the terms of the concession the Company undertakes at all
times to pay due deference to the wishes of the Sheikh and to the advice of the
Political Agent, Kuwait, and the Political Resident, Persian Gulf. The Company
also undertakes to recognize the judicial powers vested in the Political Agent,
Kuwait, the Political Resident, Persian Gulf, and His Majesty’s Secretary of State
for Foreign Affairs by the Kuwait Order in Council.
7. The right given to the Company by the concession to utilise means of
transportation by air shall be subject to any general regulations regarding civil
aviation made by the Sheikh on the advice of His Majesty’s Government.
8. The Company shall not construct any landing-ground without the prior
consent of His Majesty’s Government and the Sheikh and except in accordance
with the terms and conditions of such consent which shall not be unreasonable,
and any landing-ground so constructed shall be used only in accordance with such
terms and conditions as may be laid down by His Majesty’s Government and the
Sheikh which shall not be unreasonable.
9. In the application of the right given to the Sheikh by the concession to
make full use free of charge of the Company’s wireless and telegraph installations
and railways for governmental purposes in times of national emergency, the Sheikh
acting on the advice of His Majesty’s Government shall be the sole judge whether
a national emergency ” has arisen.
10. Notwithstanding anything contained in the concession the Company
acknowledges that under the Agreement made by Sheikh Mubarak in 1899 the
consent of His Majesty’s Government is necessary before it can use or occupy any
land m Kuwait or in the Neutral Zone. His Majesty’s Government while reserving
their right to insist upon the observance of the Agreement of 1899 will not ordinarily
do so in respect of the Company’s operations on the understanding that the
Company shall not have the right to use or occupy, and shall not include in the
areas selected for the purposes of its operations, any sites which may have been
selected by or on behalf of the Sheikh or His Majesty’s Government for defence