Page 137 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(2) Vith effect from 1st January, 1953, the Company shall pay to Your
excellency 14,500 Sterling per annum, which shall be brought into
account in ascertaining the cost of exported oil under Article 4 (<*) of
our Agreement dated 1st September, 1952, for the use of the ports of
Zekrit and Umm Said. Your Excellency hereby acknowledges that
the Company has the right of use of each such port for all imports and
exports permitted under the terms of the Amended Convention as
defined in our Agreement of 1st September, 1952.
(3) With effect from 1st September, 1952, the payment of £2,007 Sterling per
annum made to Your Excellency in respect of Amirs and their guards
shall be brought into account in ascertaining the cost of exported oil
under Article 4 (c) of our Agreement dated 1st September, 1952.
(4) Similarly with effect from 1st September, 1952, the payment of £990
Sterling per annum made to Your Excellency in respect of Customs
Services shall be brought into account in ascertaining the cost of
exported oil under Article 4 (c) of our Agreement dated
1st September. 1952.
(5) It is understood, however, that the sums mentioned in paragraphs 3 and 4
above may, if and when circumstances require, be increased or
decreased by agreement between Your Excellency and the Company.
(6) These arrangements shall remain in force for the duration of the Amended
Convention (as defined in Article I of our Agreement dated
1st September, 1952) and Your Excellency will not make any request
during that period for any increase of the annual sum mentioned in
paragraph (2) above which shall remain fixed.
We understand from our discussions that the above proposals are acceptable
to Your Excellency, and shall be glad if Your Excellency will kindly confirm
your agreement with them.

(J)
Letter, dated November 22, 1953, from the Ruler of Qatar to Petroleum
Development (Qatar), Limited, replying to (i) above
With reference to your letter No. QCP/915 of 15th November, 1953, regarding
the payments for the ports, and the employees allotted to Company regions such
as Customs employees and the Amirs.
It is true that the payments mentioned were not discussed during the negotia­
tions leading to the signing of the Amended Agreement of 1st September, 1952, but
their non-discussion at the time goes to prove my point that they are outside the
scope of what was then agreed.
Furthermore, it is not reasonable to consider payments made as salaries to
employees engaged solely in the interests of the Company’s operations as
Convention Payments. Had this been the case (as you presume) it would have
been the proper thing to enter an Article in the Amended Agreement stating that
the Ruler has to forgo the port and the other especial payments made to the then
employees or any others to be later appointed by His Excellency.
However, I feci gratified now that your Company has finally and only finally
agreed to the following: —
er the
(I) That the arrangements made and agreed to by my father as pe
Company’s letter No. QSA.22/4406 of 12th August, 1946,* will
cease with effect from 1st January, 1953, and that all payments due and
paid in accordance with the terms of the said letter up to and short
of 1st January, 1953, shall be considered as Concession Payments as
defined in our Agreement of 1st September, 1952.
(II) That with effect from 1st January, 1953, the Company shall pay the sum
of £4,500 sterling annually, which will be taken into account in esti­
mating the costs of exported oil under Article 4 (r) of our Agreement
of 1st September, 1952, for the use of the ports of Zekrit and Umm Said.
I hereby admit that the Company has the right to use each of these
ports for all the exports and imports permitted under the provisions
of the Amended Convention as defined in our Agreement of
1st September, 1952.
* No. 1 (/)