Page 43 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a)
Memorandum, dated August 2, 1940, made between His Majesty’s Government
and the Bahrein Petroleum Company whereby the Company agrees to abide
by the terms of the Political Agreement of June 29, 1940, and recognises the
Ruler’s right to terminate the Concession should the Company fail to observe
any of the terms of the Agreement
Memorandum dated the Second day of August One thousand nine hundred
and forty with reference to the Agreement dated the twenty-ninth day of June
One thousand nine hundred and forty between His Majesty's Government in the
United Kingdom (hereinafter called “His Majesty's Government") and the
Bahrein Petroleum Company Limited (hereinafter called “ the Company ’’) and to
the several Agreements therein recited made between the Company and the Sheikh
of Bahrein, the Company hereby confirms its acceptance of the following further
terms and conditions namely: —
(a) Should any of the terms of the Agreements between the Sheikh 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 twenty-ninth day of June One thousand nine hundred and forty
the Agreements between the Sheikh 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 twenty-ninth day of June One thousand nine hundred and forty,
or if the alleged failure having been disputed by the Company the matter
has been referred to arbitration under Article XXII of the Company’s
Agreement with the Sheikh dated the twenty-ninth day of December
One thousand nine hundred and thirty-four (which is made applicable
to the case by Article 10 of the Agreement between the Company and
His Majesty’s Government) and any failure so found by arbitration
should not be remedied within the time set by the arbitrator for so doing
then the Company agrees that the Sheikh will be entitled to terminate
the Agreements between the Company and himself.
In witness whereof Hamilton Richard Ballantync on behalf of the Bahrein
Company Limited has hereunto set his hand and seal and the Company has here­
unto caused its Common Seal to be affixed the day and year first above written.
Signed Sealed and Delivered
by the said Hamilton Richard
Ballantyne on behalf of the H. R. BALLANTYNE (L.S.).
Bahrein Petroleum Company
Limited in the presence of:
W. M. Ballantyne,
7, Wilbury Grange, Hove,
Sussex. Student.

(b)
Letter dated July 6, 1940, from the Political Agent, Bahrain, to the Ruler of
Bahrain informing the latter of the signature of the Political Agreement
and requesting confirmation of his acceptance of the arrangements
contained in it
His Majesty’s Government have been furnished with a copy of lbe Agreement
signed by your Highness on the 19th June, 1940 corresponding to the 14th^ Jamaa
al Auwal 1359 supplementing the original Lease granted to the Bahrain Petroleum
Company Limited on the 29th December, 1934 and also the further Deed dated he
3rd June, 1936, and granting to the Company an Oil Concession in respect.of the
whole of Your Highness’ present and future dominions on the understanding that
‘hat Agreement is subject to the approval of His Majesty’s Government.