Page 41 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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(h)
Letter, dated July 21, 1951, from the Bahrein Petroleum Company to the Ruler
of Bahrain conveying the assurance that the payments at (g) above will
be continued as a temporary measure until some comprehensive plan has
been drawn up
With reference to our letter CON-722 of June 28, 1951, in which we agreed
to make a voluntary payment to Your Highness of five hundred thousand rupees
per month, we desire to assure Your Highness that this voluntary payment of
five hundred thousand rupees per month will be continued until such time as a
comprehensive overall plan is determined upon and we further assure Your
Highness that under any such plan the Bahrein Government will receive not less
than the amount it would receive under the basis of payments which became
effective June I, 1951.

No. 3
Political Agreement between His Majesty’s Government and the Bahrein
Petroleum Company relating to the Mining Lease of December 29, 1934,
and the subsequent Deeds of Modification at No. 2 (a) and (b) above, dated
June 29, 1940

This agreement dated the 29th day of June One thousand nine hundred and
forty is made between His Majesty’s Government in the United Kingdom (herein­
after called “ His Majesty’s Government ”) of the one part and the Bahrain
Petroleum Company Limited (hereinafter called 44 the Company ” which expression
shall where the context so admits be deemed to include its successors and/or
assignees and shall also be deemed to include any subsidiary Company) of the other
part.
The Company having knowledge of the protection afforded by His Majesty's
Government to and enjoyed by, the Shaikh of Bahrain (hereinafter called 44 the
Shaikh ”) and having by the several Agreements dated the 29th December, 1934,
the 3rd June, 1936, and the 19th June, 1940, obtained with the knowledge of His
Majesty’s Government the several concessions mentioned in such Agreements in
regard to petroleum and matters relating to petroleum over the whole of the present
and future territories of the Shaikh and having every desire to submit to the
influence of His Majesty’s Government within the confines of such territories, has
agreed with His Majesty’s Government, as follows: —
1. The Company shall be and remain a British Company registered in the
British Empire and shall maintain an office in Great Britain which shall at all times
be in the charge of a British subject who shall be a recognised channel of communi­
cation between the Company and His Majesty’s Government.
2. Notwithstanding anything contained in the Agreements between the
Company and the Shaikh those Agreements shall not be transferred to any other
Company without the prior consent in writing of His Majesty’s Government. It
is understood by the Company that any transactions which have as their object or
possible result the passing of control over the Company’s operations to foreign or
other American interests shall not be effected without prior ascertainment of the
views of His Majesty’s Government.
3. At least one of the Directors of the Company shall at all times be a British
subject who shall be persona grata to His Majesty’s Government. His selection for
appointment as Director shall be made in consultation with His Majesty’s Govern­
ment and his salary as Director shall be provided by the Company. A reasonable
time shall be allowed for the replacement of the British Director in the event of his
post falling vacant.
4. The Company in all except unimportant or routine matters shall deal with
the Bahrain Government through a Chief Local Representative in Bahrain who
shall be a British subject and who shall be the recognised channel of communication
between the Company and the Bahrain Government. All communications which
that Official may desire on behalf of the Company to address to the Bahrain