'File 14/115 VII Annex (B 9) Abu Musa oxide: collected background material on the case' [‎133r] (276/1904)

This collective testimony disposes of the arguments which the Germans have
hased on the forced mterpretation which they sought to place on the words. Th£
translation compliance with the German's wishes " was quite a second thought.
{Vide Enclosure 8 of 1st German Memorandum).
{61) The fad* cited above show that Nejef* * *
Abdul Latif declared their approval of the co contend
that aiter seeing the text of the agteexnent none of them approved of it, such ap
proval as was expressed having been induced by the deliberate suppression of
facts by Hasan.
{62) The Memorandum of Association
for the partners.—-The answer to the arguments on this point is that the document
quoted as Annex 14 of the German Rejoinder is not a completed document and
bears bo signatures. It was not accepted by Abdul Latif and was never complet
ed or signed up. It has nevel been seen by Shrikh Sagar. Malcolm or Nejef and
has never been quoted or acted upon by any of the parties, and no accounts
have ever been rendered by Hasan Ail Samaiyeh as would kve been required had
it been operative. (Annexes 40 and 42).
I append/sta^tement by Abdul Latif on the subject (Annex 12) and would
also refer to the statement of Isa bin Abdul Latif, dated 17th Muharram 1326
(20th January 1908), forming an enclosure to my letter of 1st March 1908. Esa
and Abdul Latif have never suggested that Hasan was not the managing part 1 -
ner for the sale of the oxide " with the knowledge of all
But this deed, which granted a monopoly for a number of years to Wonckhaus,
was a newand radical departure from the practice of the past; it was clearly a privi
lege, which it was not within Hasan's competence to grant without consulting his
partners, and by his tactics in endeavouring to keep the terms of the document se
cret from his partners, Hasan showed that he knew very well that he had acted
ultra vires, and that they would object as soon as they understood the effect of the
document. ,
The ground for Esa's action .was {vid his letter of 20th February; 1907 to
Shaikh Sagar) that " Hasan Samaiyeh has no deed of authority from me, giving
him any general power in regard to the action which he might take respecting the.
lease, etc. "
Nor had he. His conduct of affairs, e.g his refusal to render any accounts, his
inclination to ignore his partners and his readiness to buy up their shares, warrant
the conjecture adumbrated by Nakhoda Ali (Annexes 36 to 39) that his ' aim was
to tire out, or to buy out, the others, and get the concern, into his own hands.
(63) * * He, Malcolm, cotild not do anything although he was a
because an individ^l partner had no right * * * * ^
stated more distinctly that Hasan Samaiyeh —I attach a copv
of an affidavit made by Mr. Malcolm which explains his attitude towards the
concern and towards Hasan Samaiyeh. It is clear that he did, in practice, treat
Hasan as managing partner, up to a certain po'nt (Annex 40).
In this regard, generally, I would observe that the British Memorandum said
no more than that there were no documents in their possession to indicate that
Hasan was managing partner.
Other documents, such as Malcolm's deed of partnership (Annex 33) are now
forthcoming, which show that Hasan did act as managing partner for the ordinarv
sale of oxide " with the knowledge of ali but that does not alter the fact that his
execution of his exclusive contract with Wonckhaus and the terms of that contract
were both ultrcivires. He had no authority to warrant such a step.
{64) It appears from the books of the Com
and well. —In this case it is the more curious that Hasan should have persistentlv
neglected to furnish any accounts to his partners and should always have put them
off with vague promises that he would soon make them up. There is good reason
to believe from the reports of the Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. Agent, Lingahr, at the time that these
nicely-kept accounts were concocted by Abdullah and Brown at Ling ah (Enclo
sures to Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. letter No. 909 of 2ist March 1908 to India).