File 200/1928 Pt 8 'Anglo-Persian Negotiations' [‎138r] (280/1096)

THIS DOCUMENT 13 THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
Printed for the Cabinet. May 1933.
^ ‘ '' ^
SECRET. Copy No. <.!)
C.P. 135 (33).
CABINET.
ANGLO-PERSIAN RELATIONS.
AS I have to leave for Geneva, and shall therefore not be able to be present
in Cabinet on the 24th May, I circulate to my colleagues a short memorandum
regarding Anglo-Persian relations.
J. S.
Foreign Office, May 19, 1933.
Memorandum.
Sir John Cadman has, since his return from Persia, given me an account
of his negotiations in Tehran, where, owing to his very exceptional personality,
he was able, when the Persian Ministers were obstructive, to enlist the good
offices of the Shah himself, and to reach a satisfactory settlement regarding the
dispute between the Persian Government and the Anglo-Persian Oil Company.
2 . The new agreement, Sir John Cadman tells me, is most satisfactory, and
he has no doubt at all that it will be so regarded by his shareholders. The new
concession will run till 1993, thus involving an extension of 30 years beyond
the term of the cancelled concession; there can be no further dispute about
accounts; he has got a satisfactory arbitration clause, which he considers will
prevent any other attempt at unilateral cancellation; the provisions about area
give him all he wants; and he has successfully resisted the demand for the
appointment to the board of any Persian director. The only reason why the
satisfactory nature of the agreement is not already publicly announced is that it
still has to be ratified by the Persian Mejliss; this should take place next week.
3. Mr. Hoare, His Majesty’s Minister in Tehran, has suggested that there
might be considerable advantage were the King to send a telegram to the Shah,
expressing satisfaction at the recent solution of the oil company’s dispute, and
the hope that questions now outstanding between His Majesty’s Government
end the Persian Government may be solved in a no less satisfactory manner in
the autumn. Such a message is of course unusual, and I myself had qualms
about taking any such action, as the recent dispute was primarily one between
the Persian Government and a private English company, even though at Geneva
h was a dispute between our two Governments. But I have had the opportunity
ot discussing the matter with Sir John Cadman since his return. He is a man
°t exceptional parts, and expressed to me his considered opinion that the
Jtmosphere created in Tehran by the settlement of his dispute is definitely
tavourable at present, and that such a message would flatter the Shah intensely;
tpd, further, the attitude both of the Shah and the Foreign Minister made him
eel convinced that the Persians would like to see a settlement of outstanding
uifficulties with us.
. 4- This opinion, coming from Sir John Cadman, does inevitably carry
weight with me. The danger of the present position is that the Persian
Government in September last requested us to evacuate Henjam, where we at
piesent have no right to keep our ships without Persian consent. If the Persian
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