'File 5/1 XIV Kuwait Oil Company' [‎129r] (264/570)

D.O.No.C- (i(>.
7111 you please refer to ray L>.0 # Ho # C-175 of the
POLITICAL AGHHCY,
The 5th August 1957
KU,/AIT
y * U b
15th July
2
Here are soae relevant facts
(a) The Kuwait Oil Company buys its rupees Indian silver coin also widely used in the Persian Gulf. in Kuwait
with cheques on Iraq, that is in Dinars.
should be changed at si^ht by the broker Often a local commercial agent in the Gulf who regularly performed duties of intelligence gathering and political representation. for Rs.15/5/-.
Since the difficulty mentioned in the letters from Stewart
and the General superintendent, the broker Often a local commercial agent in the Gulf who regularly performed duties of intelligence gathering and political representation. will by arrange
ment give the rate of Rs. 15/5/6 only and receive at Ise.st
a week’s notice of the Company’s requirements.
(b) The difficulty was not so much the shortage of
rupees Indian silver coin also widely used in the Persian Gulf. as the excess of Dinars. Dinar cheques seemed to
have flooded into Kuwait owing, first to a favourable rate
of exchange, of which many people wished to take advantage,
and then owing to the purchase of 50,000 lambskins by
the Hudson Bay Company’s agent who paid for them by Dinar
cheque. At this moment came the seasonal shortage of
rupees Indian silver coin also widely used in the Persian Gulf. . The Company’s broker Often a local commercial agent in the Gulf who regularly performed duties of intelligence gathering and political representation. found himself quite unable
to find a good market for more dinar cheques and the Dinar
fell to Rs.15/2/-.
(c) On the other hand the average purchase price in
Kuwait of rupee cheques on Karachi or Bombay is Rs.105/-
for a cheque of Rs.100, such is the demand for cheques
on India - Kuwait being economically more closely tied
Their arrangement last year was that their cheques
7. H. Young
Young, Isquire,
His Majesty’s Vice-Consul
BID HIRC.