Page 174 - The Persian Gulf Historical Summaries (1907-1953) Vol III
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                                            169

                                           (a)
          Letter, dated June 16, 1953, from D’Arcy Exploration Company to the Under­
               secretary of State for Foreign Affairs, requesting the latter's agreement on
               Three Specific Points arising under the Political Agreement (No. 4) above

              Wc acknowledge receipt of your letter No. EA/ 1532/5 of 10th March, 1953,
          in reference to a Political Agreement to be concluded between Her Majesty’s
          Government and ourselves arising out of the signature by H.E. the Ruler of Abu
          Dhabi and ourselves, on 10th March, 1953, of an Oil Concession Agreement
          relating to the oil rights in the subsoil of marine areas appertaining to Abu Dhabi,
          outside the limits of territorial waters.
              This Company’s seal has been affixed to both copies of the Political Agreement
          forwarded with your letter under reply; and one of these duly executed documents
          is returned herewith.
              We attach herewith a copy of the Oil Concession Agreement, and take this
          opportunity of drawing attention to the fact that as a result of alterations made, in
          deference to the wishes of the Ruler, to the terms of the draft Concession Agree­
          ment upon which were based the discussions with your office to which you refer,
          and also as a result of the proposed method of operating the Concession, it appears
          desirable to achieve an understanding as to the operation of certain Articles of the
          Political Agreement. This is as follows: —

               (i)  Should any of the companies referred to in Article 1 of the Political
                    Agreement be a company registered in any of the countries of the
                    Commonwealth, Her Majesty’s Government will not withhold their
                    consent.
              (ii)  Her Majesty’s Government will not withhold their consent required under
                    Article 2 to the transfer of the obligations or benefits of the Concession
                    Agreement to a company registered in any of the countries of the
                    Commonwealth, provided that the Company accepts the Political
                    Agreement.
              (iii)  In the exercise of their right of pre-emption under Article 13 of the Political
                    Agreement, Her Majesty’s Government will allow the Company to fulfil
                    their obligations under Articles 15 and 16 of the Concession Agreement.
              We shall be glad if you will confirm that this understanding is agreed as being
          supplemental to the Political Agreement attached hereto.
              In clarification of the expression used in the preamble to the Political Agree­
          ment “ the seabed appertaining to Abu Dhabi and its subsoil,” we would draw
          your attention to the fact that under Articles 1 (/), 1 (/i) and 3 of the Concession
          Agreement the Company’s interest is confined to that part of the area which lies
          beyond the territorial waters of Abu Dhabi.



                                            (b)
          Letter, dated July 16, 1953, from the Foreign Office, replying to (a) above and
                              containing the required Agreement
              1 am directed by the Marquess of Salisbury to acknowledge your letter of the
          16th of June with which you returned one copy of the Political Agreement  con-
          eluded between Her Majesty’s Government and your Company in connexion with
          the Concession Agreement which you have reached with the Ruler of Abu Dhabi.
              Lord Salisbury confirms the following understanding which shall govern the
          interpretation of certain Articles of the Political Agreement and which shall be
          regarded as supplemental to it: —
               (i)  Should any of the companies referred to in Article 1 of the Political
                    Agreement be a company registered in any of the countries of the
                    Commonwealth, Her Majesty’s Government will not withhold their
                    consent.
              (ii)  Her Majesty’s Government will not withhold their consent required under
                    Article 2 to the transfer of the obligations or benefits of the Concession
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