'File 14/115 VII Annex (B 9) Abu Musa oxide: collected background material on the case' [‎61r] (132/1904)

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[This Document is the Property of His Britannic Majesty s GsvemmgiitJ
ASIATIC TURKEY AND ARABIA. [February 4.]
0 O Nil Dii N TI AX. S ection 1.
[294] No. 1.
Minutes respecting Ahu Mum,
MAJOR COX. paid me a visit yesterday, and, as the result of our conversation,
and of a further examination of the recent German memorandum, and of the earlier
papers in tne case, I cannot help feeling that Sir E. Grey would be well advised
to make an attempt to settle the dispute by a compromise. The more one goes into
the case, the iess s it seems to me, is it worth fighting about ; the longer the dispute
goes on. the larger the bill for damages that His Maiesty's Government will in the end
have to pay.
2. i he valid part of Wonckhaus's claim is that for compensation for the loss he
has sustained by reason of Hassan Samaiyeh's breach of his contract to sell to him the
output of the oxide mines on the island at a fixed price per ton, Hassan Samaiyeh
broke his contract because the sheikh cancelled the concession which Hassan and his
partners held. The Germans know quite well that the sheikh cancelled that concession
with the approval, if not at the instigation^ of the representatives of His Britannic
Majesty, and therefore the German Government take up Wonckhauss claim, and put it
forward as one which His Majesty's Government are bound to pay.
3. The object in view r in getting the concession cancelled by the sheikh was
political : it was to prevent Germany, through Wonckhaus ; from getting a monopoly
and foothold in the Island of Abu Musa, which might have been pushed and developed
into a political occupation. That object has been achieved, but another consequence
has also resulted, viz., that Wonckhaus has been prevented from trading in the oxide,
and to such trading there need be no objection on political grounds.
4. If the British representatives in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. had known all that they know
now about the contract with Wonckhaus, it would not have been necessary for the
sheikh to cancel the concession : it would have been sufficient for him to supervise the
carrying out of the mining operations on the islands by the partnership, so as to make
quite sure that Germany did not gradually achieve the actual occupation of the mine,
and subsequently of the island.
5. It seems to me, therefore, that we might quite safely make an offer to the
German Government to give Wonckhaus the same position that he held under his
contract commercially, if means can be devised that will safeguard our political
interests.
6. 1 think that an offer on the following lines would fulfil the above require
ments
(1») The sheikh to grant a new concession to Hassan and his two foraier colleagues
- of the oxide mining rights on Abu Musa, so as to enable them to carry out the
Wonckhaus contract. The concession would be to the partnership as constituted
at the time of the contract, thereby excluding the individual (Brown) who purchased
a share on behalf of Wonckhaus after the cancellation of the concession by. the sheikh.
7. (2.) A reference to some British judicial tribunal as to the amount of damages
suffered by Wonckhaus through the interruption of his contract, and payment of such
sum by His Majesty's Government. It is most desirable to avoid the fixing of this sum
through the diplomatic channel.
8. To safeguard the sheikh (and also His Majesty's Government), the new
concession under (I) would have to provide that no share in the enterprise was to
be transferred to another person without the sheikh's consent, and should also give him
access to the books and control over the mode of working the mines. The partners in
the previous concession (including Brown, who bought after the cancellation) are all
British subjects, so that we can fairly claim that the terms of the new concession are
no concern whatever of Germany's, and that all that she is concerned with is the
carrying out of the Wonckhaus contract..
9. As to the tribunal before which the amount of the damages w^ould be fought
out under (2), I think the best course would be to send up one of the judges from
either Zanzibar or Constantinople ; this might entail the passing of an order in
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