Page 254 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a)

Letter, dated August 18, 1953, from Petroleum Development (Trucial Coast)
Limited, to the Ruler of Fujairah on the subject of payments accruing to
the latter under the above Agreement
I have Ihc honour to inform you that while it is understood between us that
Sterling is the currency in which payment will normally be made to you by my
Company under the Agreement dated 18th August, 1953, between Your Excellency
and my Company, it is appreciated that you require Indian Rupees for local expendi­
ture. My Company is therefore willing, so long as the present freedom of exchange
between the Indian Rupee and Sterling prevails, to pay the amount mentioned in
Article 4 of the above Agreement in Indian Rupees, provided that any payment
so made in Indian Rupees shall be in full discharge of the equivalent Sterling obliga­
tion converted at the Indian Rupee/Sterling par rate ruling at the time such
payment is made.
I request Your Excellency’s formal acceptance of the above.

(b)
Letter, dated August 18, 1953, from the Ruler of Fujairah to Petroleum Develop­
ment (Trucial Coast) Limited, agreeing to the terms of (a) above
I have understood your letter of to-day’s date to the effect that sterling is the
currency in which the Company will pay me in accordance with the agreement
concluded between us on 18th August, 1953, and that the Company will pay up to
the amount mentioned in the fourth article of the above agreement in Indian
rupees in discharge of the equivalent sterling obligation converted at the Indian
Rupee /Sterling par rate ruling at the time such payment is made.
I therefore agree to and accept this arrangement as explained in detail in
your letter.

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