Coll 30/87(2) Part II 'Qatar: Oil Concession - P.C.L.'s Operations.' [‎248r] (502/603)

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INDIA OFFICE The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. ,
EXPRESS LETTER (AIR MAIL)
(N.B./This is an original message, sent by air mail to save
telegraphic expense, but intended to be treated on receipt with the
same expedition as if it had been telegrap>hed).
From Secretary of State for India.
To Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
Repeated to Government of India, External Affairs
Department.
Dated Q August, 1946.
EXTERNAL DEPARTMENT,
Ext .4952/46
Your Express letter No.c/220 of 4th June. Oil development in
Bahrein Additional Area and waters between Bahrein and Qatar.
2. Copy of correspon dence with Finistry of Fuel and Power is enclosed
/ To M.F.P, dt. 2nd July. ) herewith together with letter from Petroleum
/ Frcm-M«F«P. dt. 17th July. ) Concessions Ltd, dated l6th July (and enclosure)
and interim reply,
3. With regard to paragraph 2 of your Express letter under reference,
H.M.G. agree that the moratorium may now be terminated and that the
Bahrein Petroleum Company may be allowed to undertake operations in the
X area (jarim and Portuguese Fort area) on the assumption that Points
B, C and D are all undisputably in Bahrein territory. They also agree that
the Company should not, for the present at least, be allowed to under
take operations in the Y and. J areas. (Jaradeh and Jabal group and
Scwad Janubiya respectively). As regards the Z area (Hawar Islands)
there can be no doubt that points H, I and G on the map lie within the
Additional Area, but the exact extent of the Hawar Islands (i.e. the
off-lying Islets and their territorial waters) never seems to have been
accurately defined. If the Bahrain Petroleum Company are allowed to
commence operations at points H, I and G on their map before the
position has been cleared up, difficulties may arise owing to the
Company wishing to extend, the scope of their operations from the main
Island itself into the sea. It would therefore seem preferable that
operations by the Company on the Hawar Islands should be deferred until
the position has been further defined. If you see no objection, please
inform them accordingly.
4. With reference to paragraph 6 of your Express letter, you will see
from the enclosed correspondence that P.C.L. have themselves recently
raised the question of the division of the waters between Bahrein and
Qatar. It would seem desirable, if practicable, to lay down at a fairly
early date some dividing line on the map to be regarded by both
Companies and by the Rulers of Bahrain and Qatar as binding, not only
in the area between the Hawar Islands and Qatar but also extending north
from the Hawar Islands area to say, latitude 26° 30^ North. H.M.G.
must reserve to themselves the ultimate right to decide the exact
location of such a line, but the agreement of the interested parties
is. desirable, and it would be easier to obtain this now when the oil
development of these waters has not yet begun than at a later stage.
/Such