Page 66 - The Persian Gulf Historical Summaries (1907-1953) Vol III

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(a)
Letter, dated April 13, 1934, from the Ruler of Kuwait to the Political Agent,
Kuwait, accepting the Terms of the Political Agreement of March 5,1934
With reference to your confidential letter No. C-134, dated the 27th Dhil
Hujjah, 1352, equivalent to the 12th April, 1934, forwarding a copy of the Political
Agreement that has been concluded between His Majesty’s Government and the
representatives of the Kuwait Oil Company at London.
1 beg to inform you that I have perused the contents of the said Agreement
and approve them all.

(b)

Letter, dated May 23, 1934, from the Political Agent, Kuwait, to the Ruler of
Kuwait, proposing certain arrangements under the Political Agreement of
March 5, 1934
I have the honour to remind Your Excellency that I have discussed with Your
Excellency certain points arising out of the Commercial Agreement granting an
oil concession in respect of Kuwait territory, which is in process of negotiation
between Your Excellency and the Kuwait Oil Company.
2. Your Excellency also referred to the fact that an Agreement, of which I
have already sent you a copy, under my letter No. C.Ill, dated 12th April, 1934,
and to the terms of which you see no objection, has been concluded between the
Kuwait Oil Company and His Majesty’s Government.
3. We have further discussed what would happen in the following events
should Your Excellency decide to grant a concession to the Kuwait Oil
Company: —
(a) If the Kuwait Oil Company shall fail to observe any of the terms of the
Agreement between the Company and His Majesty’s Government,
signed in London on 5th March, 1934, referred to above, and if the
matter is referred to arbitration under Article 18 of the Commercial
Agreement with Your Excellency, also referred to above, should fail
to remedy such failure within the reasonable time which shall be fixed
by the arbitrators for so doing.
(b) Should any of the terms of the Commercial Agreement between Your
Excellency and the Kuwait Oil Company be inconsistent or in conflict
with the terms of the Agreement between the Company and His
Majesty’s Government, signed in London on 5th March, 1934.
I have now to inform Your Excellency that, in the event described in (a) above,
then in that case, as in the cases mentioned in Article 11 of the Commercial Agree­
ment referred to above, between the Kuwait Oil Company and Your Excellency,
but in no other, the Company agrees that Your Excellency will be entitled to
terminate the Commercial Agreement, and that all properties of the Company
within the State of Kuwait, shall become the property of the Shaikh.
In the event described in (b) above, the Commercial Agreement between Your
Excellency and the Kuwait Oil 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, signed in London on
5th March, 1934.
4. Your Excellency has also invited me to say what the position will be, in
the event of the Agreement between Your Excellency and the Company being
terminated in the circumstances described in (a) above, in regard to land granted
to the Company by the Shaikh, and any lands or buildings which the Company
may have bought, and any houses or buildings constructed by, and other immovable
property of the Company, within the State of Kuwait.
In reply I have to inform Your Excellency that in such circumstances the
Company agree that such lands, buildings, houses and other immovable property
will be handed over to the Shaikh, free of cost, and that producing wells and
borings will be handed over in reasonably good order and repair.