Page 210 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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Any such compensation shall be settled by agreement between His Majesty’s
Government and the Company or, in default of agreement, by arbitration in the
manner provided by sub-clause (3).

Signed, sealed and delivered by the said
John Charles Walton, C.B., on behalf I J. C. Walton. (L.S.)
of His Majesty’s Government in the |
presence of: —
A. C. B. Symon,
India Office.

The common seal of Petroleum Con­
cessions, Limited, was hereunto > (Seal)
affixed in the presence of: —
W. Fraser, Director.
E. J. Brown, Secretary.

(a)
Letter, dated December 23, 1937, from the Political Agent, Bahrain, to the
Ruler of Sharjah on the Subject of the Political Agreement (No. 10) above
His Majesty’s Government have been furnished with a copy of the Agreement
signed by you on the 17th September 1937 (No. 9) corresponding to the 11th day
of Rajab 1356 granting to Petroleum Concessions, Limited, an oil concession in
respect of your 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 Petroleum Concessions, Limited, in London on 12th November 1937 (No. 10).
3. I am to inform you that the understanding described below has been
reached with the Company: —
(а) 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
12th November 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.
(б) 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 12th November 1937, or if the alleged failure having been disputed
by the Company the matter has been referred to arbitration under
Article 24 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 "should be fixed
by the arbitrators for so doing then in these cases, as in the cases
mentioned in Article 19 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 your territory 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
your territory, including the producing wells and borings which shall
be handed over in reasonably good order and repair.
4. Please let me have a reply to this letter to the effect that you understand
the nature of the arrangements set out above and that you are prepared to agree