Page 175 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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(a)
Letter, dated June 16, 1953, from D’Arcy Exploration Company to the Under­
secretary of State for Foreign Affairs, requesting the latter's agreement on
Three Specific Points arising under the Political Agreement (No. 4) above

Wc acknowledge receipt of your letter No. EA/ 1532/5 of 10th March, 1953,
in reference to a Political Agreement to be concluded between Her Majesty’s
Government and ourselves arising out of the signature by H.E. the Ruler of Abu
Dhabi and ourselves, on 10th March, 1953, of an Oil Concession Agreement
relating to the oil rights in the subsoil of marine areas appertaining to Abu Dhabi,
outside the limits of territorial waters.
This Company’s seal has been affixed to both copies of the Political Agreement
forwarded with your letter under reply; and one of these duly executed documents
is returned herewith.
We attach herewith a copy of the Oil Concession Agreement, and take this
opportunity of drawing attention to the fact that as a result of alterations made, in
deference to the wishes of the Ruler, to the terms of the draft Concession Agree­
ment upon which were based the discussions with your office to which you refer,
and also as a result of the proposed method of operating the Concession, it appears
desirable to achieve an understanding as to the operation of certain Articles of the
Political Agreement. This is as follows: —

(i) Should any of the companies referred to in Article 1 of the Political
Agreement be a company registered in any of the countries of the
Commonwealth, Her Majesty’s Government will not withhold their
consent.
(ii) Her Majesty’s Government will not withhold their consent required under
Article 2 to the transfer of the obligations or benefits of the Concession
Agreement to a company registered in any of the countries of the
Commonwealth, provided that the Company accepts the Political
Agreement.
(iii) In the exercise of their right of pre-emption under Article 13 of the Political
Agreement, Her Majesty’s Government will allow the Company to fulfil
their obligations under Articles 15 and 16 of the Concession Agreement.
We shall be glad if you will confirm that this understanding is agreed as being
supplemental to the Political Agreement attached hereto.
In clarification of the expression used in the preamble to the Political Agree­
ment “ the seabed appertaining to Abu Dhabi and its subsoil,” we would draw
your attention to the fact that under Articles 1 (/), 1 (/i) and 3 of the Concession
Agreement the Company’s interest is confined to that part of the area which lies
beyond the territorial waters of Abu Dhabi.

(b)
Letter, dated July 16, 1953, from the Foreign Office, replying to (a) above and
containing the required Agreement
1 am directed by the Marquess of Salisbury to acknowledge your letter of the
16th of June with which you returned one copy of the Political Agreement con-
eluded between Her Majesty’s Government and your Company in connexion with
the Concession Agreement which you have reached with the Ruler of Abu Dhabi.
Lord Salisbury confirms the following understanding which shall govern the
interpretation of certain Articles of the Political Agreement and which shall be
regarded as supplemental to it: —
(i) Should any of the companies referred to in Article 1 of the Political
Agreement be a company registered in any of the countries of the
Commonwealth, Her Majesty’s Government will not withhold their
consent.
(ii) Her Majesty’s Government will not withhold their consent required under
Article 2 to the transfer of the obligations or benefits of the Concession
46467 z