"ملف ٥/ ١ XI شركة نفط الكويت" [و‎‎٤‎٨] (٤٥٢/١٠٠)

Telegram xx
Prom
To
HtftU'a Secretary of State for Indla 9 London
Government of India f New Delhi* Fo*2869*
Repeated Political Resident 9 Busnire
Dated 4th (received 6th ) December ^934*
^o*2860*
Bushire telegram dated 22nd November No*1010
ana connected correspondence* KUWAIT OIL*
British Company referred to in telegram of
19th November No.2743 "Traders Limited" have now officially
requested approval of His KLajesty’s Government to a concession
and have produced tr nslation of letter dated Septemoer 2nd 9
text of which is contained in my immediately following tele- •
gram. Copy of Company’s letter and of draft concession
follows by air mail of 30th November. Negotiations are
stated to nave been proceeding since last n^ril* Financial
terms are prime, facie definitely more favourable to Bhaiich
than those ofiered by Kuwait Oil Company* Applicants state
that their capital is British but concession gives power to
assign without reference to Ris Majesty’s Government to
Company with minimum of 60^ British capital and to forming
of subsidiaries subject to same proviso, and does not express
ly provide for British control. Company may also denounce
after three years at three months* notice. Company state
that they areWware that their terms are better than those of
Kuwait Oil Company. rinaneial position and backing of
Company and their general standing is under investigation*
Subject to your observations Resident should at
once proceed to Kuwait and interview the Shaikh and ascertain
whether he confirms information given by Traders Limited, and
in that event secure explamtion from him of the circumstances
in which he took this action in fc*ce of the warning conveyed
to /