IOR/R/15/1/639

The volume continues on from IOR/R/15/1/638 in discussing a proposed Oil Concession for Kuwait which is negotiated by Major Frank Holmes on behalf of the Eastern and General Syndicate Limited.

The correspondence focuses on a proposed clause in the draft concession agreement, known as the 'Nationality Clause', which would prevent non-British companies from obtaining a concession in Kuwait, and which the Shaikh of Kuwait and His Majesty's Government wish to enforce, but which the Syndicate object to as they are American-owned.

Central to the correspondence is a letter from Shaikh Aḥmad al-Jābir Āl Ṣabāḥ, Shaikh of Kuwait, to Major Frank Holmes in which the Shaikh implies that he would be willing to forego the Nationality Clause if the British Government are willing for it to be omitted and thus transfers the onus of responsibility for the clause to His Majesty's Government (folio 35). This leads to substantial correspondence on the matter between the Secretary of State for the Colonies, the India Office and the Government of India, as well input from the Admiralty, Air Ministry and Petroleum Department over the need for such a clause and the military and strategic implications of non-British interests in Kuwait.

Also included with this correspondence are letters between the Foreign Office and the US Embassy regarding the United States of America's concerns that Americans are being excluded from negotiating concessions in Kuwait, and their expectations that any concession in Kuwait should be on the same terms as those granted in Bahrain.

Further correspondence and documents of interest include:

• A new draft agreement, drawn up following the decision to drop the Nationality Clause (folios 180-204);
• Copies of correspondence regarding the question of jurisdiction in Kuwait over non-Muslim foreign powers and referencing an agreement by the Shaikh of Kuwait in 1925 which granted the power of jurisdiction to His Majesty;s Government;
• The Senior Naval Officer's confidential proceedings of 31 May 1931: 'The status of the Islands of Farsi, Harkis, Al Kuran and Arifi';
• Correspondence relating to the Anglo-Persian Oil Company who are undertaking a geological survey of Kuwait and considering whether to apply for a concession;
• A letter by Colonel Dickson, Political Agent in Kuwait, detailing a conversation with Major Frank Holmes in which he outlines where he believes the oil to be in the Persian Gulf, and including, on folio 58, a sketch map of the three principal oil lines that Holmes believes to exist (folios 55-57);
• Proposed amendments to the clauses of Holmes second draft agreement (found in IOR/R/15/1/638), written before the agreement to drop the Nationality Clause was reached, written by Dr Fermor, Director of the Geological Survey of India (folios 114-126);
• A letter from the Air Ministry, 19 March 1932, requesting assurances that all possible steps will be taken to maintain the British position in the Gulf and highlighting the need to safeguard oil supplies as they are the main propellant of the RAF (folios 133-134);
• Memorandum by the Admiralty expressing their concerns over future complications which could arise in the Gulf and their strategic objections to potential oil supplies not being in British control, and outlining current arrangements for obtaining and protecting those supplies (folios169-173).