PUBLIC RECORD OFFICE
Reference :-
TITLE C.O.885
21 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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in concessions granted by Government that they should not be held by other than British subjects or limited companies British in character and control.
2. The India Office letter, dated the 23rd February, 1911, addressed to the Colonial Office, substantially states the practice adopted in regard to oil mining concessions in Burma. We would add, however, that in the standard forms of pro- specting licence and mining lease for oil, extracts from which are enclosed, provisi-m is made not only against transfers and assignments of concessions, but also against the concessionaires entering into improper combinations.
3. We also forward copies of the letters noted in the margin, which show Letter to the Government of Burma, 16th the action taken by the Government of January, 1907.
India to ensure as far as possible that the Burma Oil Company shall not fall under foreign control. We would request that these letters may be treated as confidential by the Colonial Oflice if they are com- municated to it.
Letter to the Government of Burma, 18th May, 1967,
We have, &c.,
O'M. CREAGH.
J. L. JENKINS.
R. W. CARLyle.
S. II. BUTLER. SAIYID ALI IMAM. W. H. CLARK
To the Right Honourable Viscount Morley of Blackburn, O.M.,
His Majesty's Secretary of State for India.
SECRETARY TO THE GOVERNMENT OF INDIA, Department of Commerce and Industry, to the SECRETARY TO THE GOVERNMENT OF BURMA, Revenue Department.
Calcutta, the 16th January, 1907.
The Government of India have had under consideration the question as to the measures, if any, which could be taken to ensure that the Burma Oil Company shall not come under foreign control. An examination of the question suggested that this control might be obtained in one or more of the following ways:—
(4) The Company might transfer or sublet the concessions;
(b) They might dispose of the crude oil for refinement outside British
territory;
(c) They might sell shares to foreigners; and
(4) They might join a foreign combine.
2. As regards (a) and (b) the Government of India are of opinion that these contingencies are sufficiently provided for by the existing orders and rules. As regards (c) it would be very difficult to take any action, and the Government of India do not consider it necessary at present to attempt to do so. As regards (d) no difficulty is apprehended in regard to blocks of land held under the Burma revised forms for oil mining licences and leases which contain a provision to the effect that without the consent of the Local Government the licensee shall not come to any arrangement, compact, or understanding with any trust, syndicate, corporation, or person, under which his operations or undertakings are, or inay he, carried on directly or indirectly by, or for the benefit of, or subject to the control of, such trust, syndicate, corporation, or person. The Burma Oil Company, however, hold many blocks of land under old leases in which this condition finds no place, and it is desirable to consider whether the clauses regarding improper combination, &c., could be made operative in respect of the former leases. The Government of India are of opinion that the "Additional clauses" of the prospecting licence, as well as Clause 9 of Part IX. of the lease, revised if necessary, should, if possible, be extended so as to include in former leases and licences the conditions regarding unauthorised transfer and improper under- standings which are not now so included. I am to request that, if His Ionour the Lieutenant-Governor sees no objection, the necessary steps may be taken to carry out this arrangement.
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SECRETARY TO THE GOVERNMENT OF INDIA, Department of Commerce and Industry, to the SECRETARY TO THE GOVERNMENT OF BURMA, Revenue Department.
Simla, the 18th May, 1907.
In continuation of Mr. Harvey's letter, dated the 9th January, 1907, I am directed to convey the orders of the Government of India in regard to the following two points raised in your letter, dated the 31st October, which were reserved for further consideration :—
(i) the discontinuance of the policy of reserving certain areas against the
Burma Oil Company;
(ii) the increase to 200 square miles of the maximum area which may be held
by the Burma Oil Company.
2. I am to say that the Government of India consider it desirable that the existing policy with regard to the reserved areas should be maintained until the Managing Agents of the Burma Oil Company are able to make satisfactory proposals for ensuring the perpetual British constitution of the Company. It does not, there- fore, appear to them necessary to move further in the matter until the question is raised by the Managing Agents.
3. With regard to the second point, the Government of India observe that the Burma Oil Company do not appear to have applied since 1902 for any increase to the limit of the area which they are allowed to hold, and they are of opinion that without specific reason it would be inadvisable to recommend any modification of the limit sanctioned by the Secretary of State.
Extract Clause 7 (Corenants by licensee) from the Standard form of Prospecting Licence for Oil,
7. He will not grant or assign any interest under this licence to any trust, syndicate, corporation, or person or come to any arrangement, compact, or under- standing with any trust, syndicate, corporation, or person whereby he is, or may be, directly, or indirectly, financed by, or under which his operations or undertakings are, or may be, carried on directly or indirectly by or for the benefit of or subject to the control of any such trust, syndicate, corporation, or person save and except during the pleasure and with the previous consent in writing of the local Government.
Extract Clause 14, Part VII, from the Standard form of Mining Lease for Oil.
14. The lessee shall not assign or sublet the premises hereby demised or any part thereof, or the rights and privileges hereby granted on any of them, or transfer any right or interest hereunder without the consent in writing of the lessor under the hand of a Secretary to the local Government first had and obtained, nor shall the lessee without such consent so indicated as aforesaid come to any arrangement, com- pact or understanding with any trust, syndicate, corporation, or person whereby the lessee is or may be directly or indirectly financed by or under which the lessees' opera- tions or undertakings are or may be carried on directly or indirectly by or for the benefit of or subject to the control of any such trust, syndicate, corporation, or person.
14404
No. 9.
COLONIAL OFFICE to CROWN AGENTS.
GENTLEMEN,
Downing Street, 11th July, 1911. WITH reference to the letter from this Department of the 14th February last." I am directed by Mr. Secretary Harcourt to inform you that he referred to the Concessions Committee of this Department the question of a proposed standard form of clause for inclusion in certain contracts and concessions granted by Colonial Governments with the object of ensuring that such concessions or contracts shall not
• No. 3.