'14/115 VIII B 17 Abu Musa Red Oxide' [‎82v] (174/521)

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 company.
From the above it will be seen what difficulties we should encounter were we to
accept the British proposals. We therefore bee^ 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 During this period the concession can on no account be withdrawn.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 :—
(l.) 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.
(2.) The damage sustained through the "Louise." The value of this shipment
can be proved, by comparison with the " Stolzenfels" shipment, to have been, at the
lowest estimate, 20 M. per 1,000 kilog. Of this we still have about 469 tons lying
unused; we only very rarel}' succeed in selling small quantities of this, since the
oxide has been rendered useless for nearly all industries by the presence of salt deposit
and fine sand.
In addition we should be compensated for storage expenses, the interest
thereon, and insurance expenses. It is well known that the quality of the " Louise "
shipment suffered from the oxide having been left lying unprotected for a period of
fully six months, after the interruption of work, close to the shore to which it was
being taken for shipment. Sandstorms and spray and exposure to the weather must
greatly affect the quality of oxide, because, firstly, the colour became darker; and,
secondly, the colouring properties of the oxide had considerably diminished owing to
the action of salt, sand, and weather. The damage under this head can be proved
to amount to 78,506 M. 31 pf.
We endeavoured at the time to induce the sheikh to allow at least a few of our
people to remain on the island in order to protect the oxide from deterioration by
covering over with planks the quantity which had been carried to the shore for
shipment; our request was, however, not granted.
(3.) A lump sum to cover the cost of putting the mines again into a state of
repair. We estimate that a sum of 30,000 M. will be necessary for this. We cannot
furnish documentary evidence in regard to this amount. On our making enquiries of
our local representative in regard to the amount necessary for the repair of the mines,
the above sum was indicated to us as being absolutely necessary.
(4.) A suitable compensation for the employes of the firm (two Europeans and ten
natives) for the serious danger to which they were exposed by the firing on Abu Musa,
M.
(5.) Suitable compensation should also be paid in respect of the general damage
sustained by our firm through the interruption of mining operations. The interruption
of the industry and the resulting failure to deliver the oxide was a shock to our whole
business, since our reputation suffered heavily, not only in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. but also in
Europe; this involves a diminution of the vital power of our enterprise, and means an
actual monetary loss.
It would be better to reserve more detailed statements in regard to points 4 and 5
for verbal discussion.
Should the British Government not be disposed to agree to a prolongation of the
contract for periods of six or twelve years as the case may be, we would be prepared to
renounce our claims in this respect on payment of suitable compensation.
(Signed) ROBERT WONCKHAUS and G o.
To the Foreign Office, Berlin.