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                         5.  Your Excellency has intimated after discussion with me that you under­
                     stand the nature of the arrangement, as set out above, and that you are prepared
                     to agree to them. I now request that Your Excellency will be good enough to
                     confirm this in writing.
                         6.  On receipt of your reply, His Majesty’s Government will obtain from the
                     Company formal confirmation of their acceptance of the conditions in question,
                     and will communicate such confirmation to Your Excellency.




                                                        (c)
                     Letter, dated May 26, 1934, from the Ruler of Kuwait to the Political Agent,
                                Kuwait, accepting the arrangements proposed in (b) above
                         With the hand of pleasure we have received your confidential letter No. 189,
                     dated the 9th inst. (23rd May, 1934) and have understood its contents.
                         We thank His Majesty’s Government for the trouble they have taken to bring
                     about with the Company, such arrangements as will protect and safeguard our
                     rights.
                         Further we beg to say that we agree with and confirm to His Majesty’s Govern­
                     ment, the various arrangements which they have proposed, but we consider that
                     it is in our interests that the above-mentioned arrangements should be kept
                     separate and not be attached to the Agreement to be concluded between us and
                     the Company, which Agreement, in the event of negotiations between us being
                     brought to a satisfactory conclusion, will normally be published.
                         Nor indeed will the publication of the aforesaid arrangements be of any
                     advantage to anyone. We therefore desire that you will kindly obtain an official
                     assurance from the Company (through His Majesty’s Government) to the effect
                     that they will in no case publish the arrangements that have now been arrived at.




                                                       (d)

                     Letter, dated July 24, 1934, from the India Office to the Kuwait Oil Company,
                           enclosing copies of the letters at (b) and (c) above, and requesting
                           reaffirmation of the acceptance by the Company of the proposals made in
                           (b) above
                         I am directed by the Secretary of State for India to refer to your letter of
                     18th May, 1934, intimating the readiness of the Kuwait Oil Company, Limited to
                     accept as binding on the Company the contents of a letter, which it was proposed
                     that the Political Agent at Kuwait should address to the Sheikh of Kuweit in
                     regard to certain points arising out of the Commercial Agreement for the grant
                     of an oil concession in respect of Kuwait territory which is in process of negotia­
                     tion between your Company and the Sheikh.
                         2.  I am now to enclose for the information of the Company a copy of the
                     Political Agent’s letter No. C. 189 of 23rd May, 1934, to the Sheikh of Kuwait
                     together with a translation of His Excellency’s reply of 26th May, 1934, and to
                     request that the Company will be good enough formally to reaffirm their
                     acceptance of the arrangements embodied in Colonel Dickson’s letter No. C. 189
                     of 23rd May to the Sheikh. I am also to request that, as desired by His Excellency,
                     the Company will furnish an assurance that they will in no case publish the arrange­
                     ments in question. In this connection I am to refer to Mr. Lefroy’s demi-official
                     letter of 6th June, 1934, to Mr. Laithwaile.
                         3.  The letter from the Political Agent of 23rd May to the Sheikh contains
                     a reference to “Article 18 of the Commercial Agreement.” If in the Concession
                    Agreement as ultimately concluded the arbitration article should have^ a different
                     number, it will nevertheless be clear that it is that article which is referred to in
                    the present correspondence between the Political Agent and the Sheikh.




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