Page 70 - The Persian Gulf Historical Summaries (1907-1953) Vol III

p
67

in the exercise of its rights and in the fulfilment of its obligations under
the Concession, interfere to the minimum extent possible with, and take
adequate precautions for the protection of, navigation, fishing and
pearling; and it shall comply with all reasonable requirements of Her
Majesty’s Government and of the competent authorities of Kuwait
affecting fishing, pearling and the navigation ol ships and aircraft.
13. Should the Company propose to increase its refinery capacity in Kuwait,
it will inform Her Majesty’s Government and, if required to do so, will
consult with Her Majesty’s Government about the details of its
proposals.
14. In the event of a state of national emergency or war (of the existence ol
either of which Her Majesty’s Government shall be the sole judge) Her
Majesty's Government shall have the right of pre-emption, in accord­
ance with the terms of the Schedule hereto, of all crude oil and products
thereof produced under the Concession.
15. The Company acknowledges the special treaty relations now existing
between Her Majesty’s Government and the Shaikh and the rights and
obligations devolving therefrom with regard to the Shaikhdom ol
Kuwait.
16. —(1) In the event of any breach by the Company of the terms of the present
Agreement, Her Majesty’s Government may give the Company
written notice to comply with its terms within a specified reasonable
time.
(2) If the Company fails to comply, within the specified time, with the
terms of a written notice served on it in accordance with paragraph
(1) of this Article, Her Majesty’s Government may apply to the
Lord Chief Justice of England to appoint an arbitrator who shall
decide whether the Company has acted or is acting in breach of the
present Agreement. Her Majesty’s Government shall inform the
Company of any such application to the Lord Chief Justice.
(3) The provisions of the Arbitration Act, 1950, shall govern the pro­
ceedings in any arbitration under this Article.
(4) If the arbitrator finds that the Company has failed to comply with any
of the terms of this Agreement, he may order the Company to take
such measures as he may decide (including, if appropriate, payment
of compensation) to put an end to or remedy the breach and the
damage caused by it.
(5) Subject to any right of appeal given under the Arbitration Act, 1950.
the parties hereto hereby undertake to submit to the decision of
the arbitrator appointed under this Article and to carry out any
order made by him.
(6) The order of the arbitrator may, if necessary, be enforced in Kuwait
in the same manner as an order of a Court established under the
Kuwait Order in Council.
(7) If the arbitrator finds that the Company has failed to comply with the
terms of Articles 2 or 3 of the present Agreement, Her Majesty’s
Government may request the Shaikh to terminate the Company's
undivided one-half interest in the Concession, and any such
request shall be regarded as a ground on which the Shaikh may
terminate such interest, provided that, in the event of the Company
exercising any right of appeal which it may have under the
Arbitration Act, 1950, against the arbitrator’s order, no such
request shall be made before the decision has been given on such
appeal.
(8) Reference in this Article to the Arbitration Act, 1950, shall be deemed
to include any amendments thereof which may from time to time
be enacted and any enactment replacing it.
17. The Company shall take such steps as are within its power to ensure that
any subsidiary or operating Company that may be created in
connexion with the operation of the Concession accepts and observes
the terms of the present Agreement.
18. In so far as the Company is concerned the provisions of the said Acreement
of 5th March, 1934, made between His Majesty’s Government and the
Kuwait Oil Company Limited, shall no longer apply. C
46467
K 2