CONFIDENTIAL FROM FOREIGN OFFICE TO ABU DHABI 128 DEPARTMENTAL DISTRIBUTION Cypher/OTP No. 155 12 September 1965 D. 2105 14 September 1965 PRIORITY CONFIDENTIAL Addressed to Abu Dhabi telegran No. 155 of 11. September. Repeated for information to: Bahrain (Residency) Your letter 1171/65 of 4 September and my telegram No. 149 [of 8 September: -50/50 Agreement). I.P.C. would agree to the deletion of Article 2(17) of the draft Income Tax Decree provided the following addition was made to Article 2(18) at the end thereof: "but does not include (a) duties payable in respect of imports for the personal use of individuals and (b) duties payable in respect of imports for the purposes of a producing company to the extent that such duties are payable pursuant to the terms of an agreement with the Ruler by virtue of which such producing company carries on trade or business in the Sheikhdon or any agreement supplementary thereto". The Articles would be renumbered accordingly. 2. There would be a consequential amendment to Schedule 1 Item 12 of the draft 50/50 Agreement as follows: (a) replace final full-stop by a semi-colon. (b) add: "but shall not include customs duties payable under the terms of the Amended Convention". 3. Alternatively, the Company would be equally prepared to accept a new Article 2(17) in the terms suggested in paragraph 2 of your letter under reference, with the same amendment to Schedule 1 Item 12 as in paragraph 2 above. 4. Your paragraph 3: It should now be unnecessary to hand the Ruler a memorandum, but if you were to do so, we should wish to suggest a fuller and more specific form of words. 5. Bird of I.P.C. will be in Bahrain 15 - 17 September for consultations with Milne. DISTRIBUTED TO: Arabian Dept. I.R.D. ©2000 CONFIDENTIAL
