'Confidential 86/14-iii B.49 PETROLEUM CONCESSIONS LIMITED'.

The volume comprises correspondence in English and Arabic between the Political Resident in the Persian Gulf (Trenchard Craven Fowle), the Political Agent at Bahrain (Hugh Weightman), the India Office (Roland Tennyson Peel, John Percival Gibson), the Shaikh of Bahrain (Shaikh Ḥamad bin 'Īsá Āl Khalīfah), the Adviser to the Government of Bahrain (Charles Dalrymple Belgrave), Petroleum Concessions Limited (John Skliro), and the Bahrain Petroleum Company (Hamilton R Ballantyne, John S Black) regarding the Shaikh's decision to divide the unalloted area of Bahrain and grant an oil concession for part of the area to each of the two competing companies. The correspondence centres on the Shaikh of Bahrain's decision to divide the concession area, initially proposing to grant Petroleum Concessions Limited (PCL) the majority of the territorial islands, including the Hawar Group, and some surface rights to Muharraq and to grant the remainder of Bahrain Island and Sitrah Island to the Bahrain Petroleum Company (BAPCO). This proposal is later revised with PCL being offered the Hawar Group of Islands only and BAPCO being offered all the remaining territory. Also included in the volume is correspondence relating to the response of BAPCO to this proposal which although offering improved terms for the acquisition of the concession included veiled threats to the Shaikh of Bahrain relating to a reduction of production on their existing concession, which could ruin Bahrain financially, should they not be offered the whole concession area. The other main topic discussed is the claims to ownership of the Hawar Group of Islands following a letter from the Shaikh of Qatar claiming ownership of them owing to their proximity to Qatar, and disputing the Shaikh of Bahrain's claim along with the Political Agent at Bahrain's request to the Shaikh for a formal submission of claim which was duly submitted. An initial statement from the Government of Bahrain is also enclosed which details the islands occupation by Bahrain subject's since 1783; the use of the island's fort by the Bahrain police force; cases tried by the Bahrain courts relating to individuals from Hawar and including copies of judgments of some of those cases, and photographs supporting the statements relating to occupation of the island. The correspondence concludes by requesting a formal counter claim from the Government of Bahrain in order that His Majesty's Government could make a final decision on ownership. Also included within the volume are copies of draft concession agreements, with maps, showing the area that PCL wished to acquire from the Shaikh of Bahrain and discussions regarding their desire to employ Major Frank Holmes as a negotiator in Bahrain and requesting that the Political Authorities lift their ban on his travelling there. A series of file notes which are maintained as a record of the correspondence in the volume can be found at folios 218-221.

The papers are arranged in approximate chronological. order from the front to the rear of the file.

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