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storage facilities, railways, roads, airways, airports, ports, harbors, harbor works,
wharves, docks, piers, jetties, breakwaters, fuelling stations, submarine lines and
terminals, any and all manner and means of transportation of such products, or of
materials and personnel employed in the operations of the Company, telegraph,
telephone, and subject to the requirements of national security, radio (within the
Neutral Zone only) and other communications facilities, and garages, hangars,
repair shops and service stations for any or all equipment, and buildings for offices,
warehouses, living quarters, schools, hospitals, dispensaries, clinics, recreational
facilities, commissaries, powerhouses, utilities and other purposes allied with the
operations of the Company hereunder, power stations and power lines and other
electrical facilities, artesian or other water wells and other facilities for obtaining,
storing and transporting water, sewers and other sanitary facilities, and the right
to use, subject to quarry regulations and rights of third parties, such of the natural
materials in, or resources of said Neutral Zone as the Company may reasonably
deem suitable for physical use in connection with the construction, maintenance or
operation of the facilities described generally in Article 1 hereof or more specifically
described in this Article 2 hereof. Since the operation of airports, airways and
telegraph and radio communications in the Neutral Zone and in the country con­
cerns the national security, it is agreed that these matters shall be the subject of
future regulatory agreement for the concessional area between the parties hereto,
which agreement shall not involve any additional payments or financial responsi­
bilities on the part of the Company insofar as the Neutral Zone is concerned. It is
recognized, however, that in the initial stages of its operations hereunder, the
Company will be required to use aircraft, landing fields, telegraph and radio within
the Neutral Zone, and it is agreed that the Company may do so, until the formula­
tion of such regulatory agreement, subject, however, to the general supervision and
control thereof by the Government, at the expense of the Company. The Company
shall limit the use of such facilities to matters connected with the operations here­
under and shall notify the Government in advance of the frequency and wave length
of any radio transmitting equipment used by it.
The provisions of Article 48 of this agreement with reference to the title to
property upon the termination hereof, as well as the provisions or Article 30 hereof
with reference to the use of such property by the Government, shall apply in all
respects to any property or equipment used by the Company in connection with the
maintenance and operation of airports, airways, telegraph, radio and power stations.
Article 3
Subject to the existing right of any surface owner, other than His Majesty the
King, to be indemnified for damages to or use of his property, and the right of His
Majesty the King, in respect of cultivated or otherwise developed lands owned by
His Majesty, to a rental and indemnity therefor equivalent to that generally
obtained in respect of other similar lands, the Company shall have the right to the
possession and occupancy, without let, charge or hindrance, except as herein other­
wise provided, but not the ownership of such areas within the said Neutral Zone
as the Company may reasonably deem necessary or desirable in connection with
the exercise by it of its rights or the performance by it of its obligations hereunder.
The Company shall inform the Government of areas it deems reasonably necessary
or desirable to reserve. Where it is reasonably necessary or desirable for the
Company in connection with its operations hereunder, to have the use of any
property in respect of which the surface owner is entitled to such indemnity, the
Government will, at the Company’s expense, take appropriate action for the
purpose of giving to the Company the use of such property. The Government
assumes no responsibility as to the outcome of any proceedings so taken by it.
In addition to possessing and occupying, without acquiring ownership of,
portions of said Neutral Zone as hereinabove set forth, the Company shall be per­
mitted to lease from any owner thereof any part of parts of said Neutral Zone
and/or Saudi Arabia as the Company shall deem reasonably necessary or desirable
in connexion with or incidental to its operations hereunder, upon such terms as
shall be mutually agreeable to the Company and such owner, with the approval
of the Government, which approval shall not be unreasonably withheld or delayed
Article 4
The Company will pay to the Government upon the signing of this agreement
the sum of nine million five hundred thousand dollars ($9,500,000) in currency of
the United States of America which sum has been deposited with Guaranty