مجموعة ١٠٢/٣٠ "امتياز نفط البحرين: مفاوضات بين (أ) شركة نفط العراق و (ب) شركة كاليفورنيا للزيت القياسي بخصوص امتياز نفط البحرين." [و‎‎٤‎٨] (٢٣٢/١٠٠)

^ I
Minute Paper.
POLITICAL
P-2. 4754/36.
Department.
46
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Please see my note to the Legal Adviser dated 30th
June and his reply - together with the letter from the
Petroleum Department dated the 3rd July - regarding the
situation arising from the marketing arrangement made
between Standard oil of California and the Texas Company.
It is clear that Article XIII of the Bahrein
Petroleum Company's lease cannot be held to preclude a
transaction of this kind. it only prevents the Bahrein
Petroleum Company parting with its rights to another
Company. How the shares in the Bahrein Petroleum Company
are held is not a matter falling within the purview of this
Article.
We have therefore no hold over the Company, and mmi
it is doubtful whether any form of words could be
devised which would be at all effective^ iL.
The matter will he discussed with the Petroleum
Department, Foreign Office and Admiralty on Thursday this
week, and it is proposed to base the discussion on the Legal
Adviser's note and Mr.Starling's letter, accepting any
conclusion which Mr.Starling considers satisfactory. It
seems likely that it may be agreed to ask the Company
(a) to let us know in advance of any further proposals for
transfer of capital and control,
(b) to give an assurance (either by letter or to be
incorporated in any revision of the lease) that the Company
will take any means in its power to ensure that (without His
Majesty's Government’s consent) control of the Company should
not be secured by a concern in which American and/or British
interests did not hold at least 5092 of the share capital.
Even if they did not accept (b), the Company would
no doubt grant (a)
And it is as much in their interests '
as/