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272 THE LEGAL STATUS OF THE      ARABIAN GULF STATES
                   negotiations.1 During this period, the Kuwaiti authorities lodged com­
                   plaints against the Saudis who were accused of an extensive control
                   of administration in the Zone, to the detriment of the Kuwaiti right
                   of equal share in such administration. According to some reports, the
                   number of workers in the Zone in 1962 was estimated at 4000. The
                   Saudis formed 55 per cent of this working force; other Arabs  were
                   25 per cent and the rest were foreigners, while there was not a single
                   Kuwaiti national working in the Zone. Kuwaiti authorities also com­
                   plained that labour disputes were being settled in accordance with
                   Saudi labour laws, irrespective of the nationalities of the workers or
                   the country from which they originally entered the Zone. Moreover,
                   they accused the Saudi authorities of sending directions to the oil
                   companies in the Zone requiring that each company should employ
                   not less than 75 per cent of Saudi workers. Consequently, the Kuwaitis
                   took certain measures aimed at strengthening their administrative
                   authority in the Zone, such as establishing new governmental offices
                   in the Zone similar to those already established by the Saudis.2 Such
                   unilateral actions on both sides had naturally complicated the system
                   of administration in the Zone. As Kuwait was also anxious to settle
                   the question of the islands of Qaru and Umm al-Maradim, she there­
                   fore offered sometime in 1961 to share equally with Saudi Arabia any
                   future oil proceeds accruing from the two islands, provided that Saudi
                   Arabia conceded their ownership to Kuwait. The Saudi Government,
                   however, preferred to defer this matter until the two parties reached
                   a final settlement on the demarcation of both the land and sea
                   boundaries of the Neutral Zone.3
                     As regards the land area of the Zone, it appears that at a conference
                   held in Kuwait, the two parties agreed, in principle, on the manner of
                   drawing the boundary line. It was also reported at the time that the
                   Saudis submitted to their Kuwaiti counterparts a plan for establishing
                   a system of joint administration in the Zone. This plan contemplated
                   the establishment of an administrative council in the Zone, composed
                   of two Saudis and two Kuwaitis who would be responsible directly to
                   the Governments of Saudi Arabia and Kuwait, respectively. The
                   administrative Council reserved governmental powers in all fields
                   (i.e., security, justice, immigration, etc.). Further, the two Govern­
                   ments were to appoint an equal number of judges and officials in the
                  Zone. In short, the plan purported to establish a real condominium
                  system in the Zone. However, the Kuwaiti Government rejected the
                  above Saudi plan as being complicated and impractical. It took the
                  view that the Neutral Zone should be divided into two separate areas
                    1 MEES, No. 17, 28 February and No. 19, 13 March 1964; MEES, 27 March
                  1964.
                    2 The author’s private notes. And see MEES, 28 February, 13 and 27 March
                  1964.        3 MEES, No. 6, 13 September 1963.
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