Coll 30/102 'Bahrain Oil Concession: Negotiations between (a) the Iraq Petroleum Coy. and (b) the Standard Oil of California regarding the Bahrain oil concession.' [‎105r] (214/232)

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Bahrein and verify the position. Three representatives of
the principal negotiating groups had accordingly been
despatched for this purpose by aeroplane. A few days in
Bahrein would suffice for the purpose of their investigations.
They would return by air ? so that the result of their
investigations could be available before the arrival of the
Chairman of the Standard Oil.
Mr. Fraser mentioned at this point that the French
interests in the I.P.C. which were not directly associated
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with the present negotiations^ Y^iere very suspicious of the
negotiations which were proceeding, and that on learning
that a visit of investigation to Bahrein was contemplated,
a representative of the French group serving in Iraq had on
his own responsibility at once proceeded to Bahrein by air
independently.
3. Mr, Fraser emphasised that matters were still at a
very early stage and that it was impossible to forecast until
the discussions had proceeded further what, if any, arrangement
could be reached between the Standard Oil and the I.P.C. He
did, however, indicate that no transaction was likely to be
entirely satisfactory to the I.P.C. which did not result m
the elimination of the Standard Oil from Hasa as well as from
Bahrein - in a word, in the exclusion of independent operation
by the Standard Oil from the Gulf Sheikhdoms and Ibn Saud’s
territory; and that the I.P.C. were anxious to secure as a
minimum a 50 per cent, interest in the operations of the
Standard Oil and its subsidiary companies in this area.
Various possibilities .vere a deal about markets, the effect
of -which yjould be to give the Bahrein Petroleum Company some
share in markets at present closed to them m return for
some understanding as to volume of production; the buying
out of the Bahrein Petroleum Company altogether; joint
operation/