Page 126 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a)
Letter, dated June 5, 1935, from the Political Resident in the Persian Gulf to the
Ruler of Qatar, on the Subject of the Political Agreement
Mis Majesty’s Government have been furnished with a copy of the agreement
signed by you on the 17th May, 1935, granting to the Anglo-Pcrsian Oil Company
an oil concession in respect of Qatar territory on the understanding that the
agreement is subject to the approval of His Majesty’s Government.
2. Under instructions from His Majesty’s Government I now enclose a copy
of an agreement which has been concluded between His Majesty's Government
and the Anglo-Persian Oil Company in London.
3. It is desirable that there should be a clear understanding as to the
position which would arise in certain eventualities in connexion with these two
agreements, and I am to inform you that in these circumstances the understanding
described below has been reached with the Company: —
(a) Should any of the terms of the agreement between you and the Company
be inconsistent or in conflict with the terms of the agreement between
the Company and His Majesty’s Government signed in London on
the 5th June, 1935, the agreement between you and the Company
will to the extent of any such inconsistency or conflict be subordinate
to and be controlled by the terms of the agreement between the
Company and His Majesty’s Government.
(b) If the Company should fail to observe any of the terms of the agreement
between the Company and His Majesty’s Government signed in
London on the 5th June, 1935, or if the alleged failure having been
disputed by the Company the matter has been referred to arbitration
under article 16 of the Company's agreement with you (which is
made applicable to the case by article 11 of the agreement between
the Company and His Majesty’s Government) and the Company
should not remedy such failure within the reasonable time which
shall be fixed by the arbitrators for so doing than in these cases, as
in the cases mentioned in article 14 of the Company’s agreement with
you, but in no other, the Company agrees that you will be entitled
to terminate the agreement between the Company and yourself, and
that all properties of the Company within the State of Qatar shall
become your property, and that they will hand over to you free of
cost land granted to the Company by you, and any lands or buildings
which the Company may have bought and any houses or buildings
constructed by the Company and all other irremovable property of
the Company within the State of Qatar, including the producing
wells and borings which shall be handed over in reasonably good order
and repair.
4. You have intimated, after discussion with me, that you understand
the nature of the arrangements as set out above, and that you are prepared to
agree to them, and I request that you will be good enough to confirm this in
writing.
On receipt of your reply His Majesty’s Government will obtain from the
Company formal confirmation of their acceptance of the arrangements in question
and will communicate such confirmation to you.

(b)
Letter, dated June 6, 1935, from the Ruler of Qatar to the Political Resident in the
Persian Gulf, replying to (a) above
With the hand of pleasure we have received your confidential letter, dated
the 5th June, 1935, equivalent to the 4th Rabi’-al-Awwal, 1354, and have
understood its contents.
We thank His Majesty’s Government for the trouble they have taken to bring
about with the Company such arrangements as will protect and safegard our
rights.
Further, we beg to say that we agree with and confirm to His Majesty’s
Government the various arrangements which they have made.
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