Page 40 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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(e)
Letter, dated April 12, 1950, from the Bahrein Petroleum Company to the Ruler
of Bahrain agreeing to the Proposals contained in (d) above for the
Revision of Oil Royalties
Reference is made to the proposal of Your Highness for revision of the terms
of oil royalty provided in the Lease Agreement between the Ruler of Bahrein
and the Bahrein Petroleum Company Limited, dated 29th December, 1934, as
amended, which proposal was transmitted by Your Highness to the Company
in paragraphs 1 and 4 of letter number 626-20 of 1369 to the Company from Your
Highness’ Adviser, Mr. C. Dalrymple Belgrave, C.B.E., dated 26th December, 1949.
Your Highness has stated that the proposal contained in your Adviser’s letter
includes the minimum terms Your Highness will voluntarily accept. The Company
has for many years enjoyed Your Highness’ friendship, and it desires and will
ask for nothing that would impair the excellent relationship and mutual under­
standing which have always existed between Your Highness and the Company.
With this in mind, the Company hereby accepts You Highness’ proposals
as set forth in paragraphs 1 and 4 of letter No. 626-20 of 1369 from Your Highness’
Adviser to the Company dated 26th December, 1949.
That the Company may be apprised of Your Highness’ receipt of this letter,
completing agreement, the Company will appreciate Your Highness acknowledging
its receipt.

(0
Letter, dated April 18, 1950, from the Ruler of Bahrain to the Bahrein Petroleum
Company, acknowledging receipt of (e) above

We thank you for you letter No. CON-456 dated 12th April, 1950, in which
you inform us that the Company accepts the proposal for the revision of the terms
of the oil royalty which was transmitted to you in the letter of our Adviser,
Mr. C. Dalrymple Belgrave, C.B.E., No. 626/2*0 dated 26th December, 1949.
We wish to express our very great pleasure and satisfaction at the Company's
action in acceding to our request and we look forward to a continuation of the
friendly relations which have existed between us and the Company for so
many years.

(g)
Letter, dated June 28, 1951, from the Bahrein Petroleum Company to the Ruler
of Bahrain, informing the latter of the Company’s decision to make as
from June 1, 1950, additional monthly payments to him of 5,00,000
rupees
The Company understands from Mr. Skinner that Your Highness recently
mentioned to him the comparatively large revenue other Governments in the
Middle East are now receiving from the development of their oil resources,
the need of Your Highness for more revenue, the fact that Your Highness receives
no income from the importation of oil.
The Company wishes Your Highness to know that Mr. Skinner’s report of
his conversation with Your Highness has been taken under advisement by the
Company in New York and the Company is in sympathy with the view-point of
Your Highness.
As you know, under the terms of its concession the Company is not to pay
any tax or import duty on oil imported into Bahrain, but because of your need
for more revenue and in the light of other recent developments, the Company
will voluntarily and immediately begin to pay to Your Highness, beginning
June 1st, 1951, subject to future developments, the monthly sum of five hundred
thousand Rupees (Rs. 5,00,000). u. , f
The Company wishes to take this opportunity to assure Your Highness of
its desire and intention always to deal fairly with Your Highness’ interests, which
will continue to receive the Company’s attention.