'14/115 VIII B 17 Abu Musa Red Oxide' [‎74r] (157/521)

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(Translation.)
Respecting Abu Musa.
Hamburg, March 10, 1013.
WE beg leave to point out the following objections to the compromise suggested
by the British Government for the settlement of the Abu Musa case:—
1. After our former experiences with Sheikh Seker, who claims the right of
cancelling, at any time and without indicating his reasons, concessions granted by him,
we have no confidence that a fresh concession from him would enable the mines to be
worked steadily and on a technically sound basis. As regards the transfer of the""
concession to " suitable persons," the parties concerned—the British Government, the
sheikh, and ourselves—are scarcely likely to be able to reach an agreement as to
the persons to be considered as " suitable." On the other hand, the fact should be takeir
into account that, in view of the circumstances of the case, we ourselves have the first
claim to consideration in any concession which is granted, since it is we who would
have the greatest interest in the mines being worked in a rational way, and since we
are in every way competent to carry on the work.
Moreover, the position created by the granting of the concession to a third person
would be uncertain from this point of view also: that there would always be the
possibility, if not the probability, of conflicts in the future. But who is to be the
competent person to settle such differences of view arising in the future, and who is
responsible for the damage incurred by the person working the mines for failure to
carry out the coutracts of delivery ?
2. As regards the further proposal that we should be reinstated in our contract
rights for a period equal to that during which the contract was interrupted, i.e., for
about two years and eight months, it must be observed that such a proposal does not
take sufficient account of the present situation of the oxide industry. The preparations'
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extending over several years for carrying on this industry must be regarded as entirely
lost, and the work will, for the most part, have to be undertaken anew. Two to three
years will elapse before we reach approximately the point at which we were at the time
of our forcible ejection from the island of Abu Musa. The further period to be ^
allowed to us would therefore have expired before we could bring large shipments on to
the market.
It should further be borne in mind that, if we accept the present compromise, we
should not be in a position to guarantee the regular delivery of the oxide to our
customers. Every purchaser of oxide would insert in any fresh contract a condition
that we should guarantee the regular delivery of the oxide over a considerable period
■of years. It is precisely the existence of these conditions in the oxide industry which
caused us to adopt the prolongation clause in our contract with the mining companv.
From the above it will be seen what difficulties we should encounter were we t
accept the British proposals. We therefore beg leave to submit the following counter
proposal:—
Sheikh Seker to grant us, under the guarantee of the British and German
Governments, a concession for all the oxide mines on the island of Abu Musa for a
period of six years, and on the conditions laid down in the original concession of the
mining company. We ourselves to work the mines and to make use of them as we
think fit. During this period the concession can on no account be withdrawn.
Sheikh Seker shall further be obliged, after the expiration of the first six years of the
concession, to renew it for a further period of six years on the same conditions, if no
other applicant is forthcoming. Should there be any other applicant, we are to be
entitled to tender with him.
The British Government have expressed the wish to be furnished with a complete
and detailed statement of our claims for damages. The direct losses which we have
sustained through the interruption of the work on Abu Musa are as follows:—
(1.) Our advances to the mining company, and the value of the deposits on the
island which have been either destroyed or removed, 13,106 M.
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