Page 59 - The Persian Gulf Historical Summaries (1907-1953) Vol III_Neat

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Now therefore:
It is hereby agreed that effective from midnight November 30, 1951, the Con­
cession is hereby altered and amended in the following particulars: —
1. If force majeure shall at any time or times compel the British Company
and the American Company to suspend or cease operations, the British
Company and the American Company will jointly guarantee subject as pro­
vided below that His Highness will receive as a minimum in each year during
the period of force majeure £5,000,000 sterling (United Kingdom), and the
amount advanced by the companies to accomplish this guarantee shall be
recovered from the royalty payable to His Highness in years subsequent to
the period of force majeure provided that this guarantee shall cease to operate
and be of no effect during any time when the amount to be recovered as
aforesaid equals £10,000,000 sterling (United Kingdom).
2. The British Company and the American Company will jointly make
a grant of £30,000 sterling (United Kingdom) for 1952 and £45,000 sterling
(United Kingdom) for each subsequent year for the higher education of
Kuwaitis at universities and schools outside Kuwait. The selection, placing
and welfare of these students will be the responsibility of the Kuwait
Government.
3. Questions having arisen relative to the exact islands and the exact
portion of the sea bed and sub-soil of the Persian Gulf included within the
area covered by the Concession, it is agreed: —
(a) The only islands included in said area are the islands of Warbah,
Bubiyan, Failaika, Mashjan and Auha and all islands in the Bay of
Kuwait. The British Company and the American Company hereby
relinquish and renounce all claims that the Concession covers any
other islands, including Kubr, Qaru and Umm al Maradim.
(b) The area of the Concession covers and extends over the sea bed and
sub-soil lying beneath the waters of the Persian Gulf subject to
the authority of the Kuwait Government up to a distance of six
nautical miles from the low-water base line or base points at present
used for delimiting the territorial waters of Kuwait, including the
base line or base islands of Warbah, Bubiyan, Failaika, Mashjan
and Auha; provided that where said base line crosses Kuwait Bay
it shall, for this purpose, be drawn across the entrance of Kuwait
Bay, that is, it shall be drawn from low-water mark at Ras al Ardh
to the point at low-water mark on the opposite coast at latitude
29° 27' 10" North, longitude 48° 14' 00" East.
(c) Save as aforesaid, the area covered by the Concession does not include
the continental shelf appertaining to Kuwait.
4. The period of the Concession, as specified in Article 1 thereof, is
hereby extended for an additional period of 17 years.
5. For the purposes of accounting for royalties payable under the
Concession and of making other payments provided for in the Concession,
the “ Anniversary Date ” referred to in the Concession shall be deemed to
be the 31st rather than the 23rd of December of each year.
6. From 1st December, 1951, all payments computed in Rupees to be
made by the British Company and the American Company to His Highness
under the Concession shall be made in sterling (United Kingdom) at the official
rate of exchange in effect in London on the date the payment becomes due.
7. Neither the British Company nor the American Company shall assign
or transfer in whole or in part their respective rights, interests and obligations
under the Concession without the written consent of His Highness, which
consent will not be unreasonably withheld.
It is further agreed that the British Company and the American Company will
continue to pay to His Highness the amount per ton specified to be paid in sub­
division (A) of Article 7 of the Concession, and that in view of the appointment
of the Operating Company to manage and carry on the operations under the
Concession on behalf of the British Company and the American Company, the
rights and benefits granted by subdivision (A) of Article 7 of the Concession shall
extend not only to the British Company and the American Company but also to
the Operating Company during the period the Operating Company is acting as
such manager.