File 3877/1912 Pt 4 ‘Turkey in Asia: oil concessions’ [‎39v] (20/176)

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operation of the relevant provisions of the Mining Law in those vilayets. All
the information in the possession of this Department supports that view, and in these
circumstances Sir E. Grey desires you to understand that it is impossible for him to
make representations to the Sublime Porte on the grounds that some particular action^
by the Ottoman Government is unjust and contrary to law, when, so far as the |
materials in his possession enable him to form an opinion, that action v as just and in
accordance with law. . , . . „ . ,
If Mr. Silley considers that the Turkish law was infringed by the refusal of the
licences, his proper remedy is to take proceedings in the Turkish couits and raise the
whole question of the validity of the concession to the Civil List, and also the question
of the effect which the concession has upon the operation of the Mining Law in the
vilayets of Mosul and Bagdad.
One of the applications for prospecting licences in those two vilayets was made in
the joint names of Mr. Silley and some lurkish associates. It stands, therefore, upon
a slightly different footing from the other five, but the refusal of the licence, so far as can
be made out, was based on the same grounds by the Ministry of Mines. Here, again,
Mr. Silley’s remedy must be to take action in the Turkish courts and demonstrate that
the Ministry of Mines were not justified in refusing the licence upon the grounds upon
which it was refused.
Stress is laid in your letter of the 1st July upon the decision, or the opinion, of
the Council of State, of which a copy is enclosed. Enquiries have been instituted
by Sir E. Grey as to the effect of the opinion rendered by this body, and he has a
detailed memorandum by the legal dragoman of His Majesty’s Embassy on the
subject. The functions of this body are purely advisory, and impose no obligation
upon the Ottoman Government. It appears, moreover, that these questions came
before the Council of State in the following way. The authorities at Bagdad applied
to the Ministry of Mines for instructions as to what procedure was to be followed when
the applications for these prospecting licences "were received, and as the matter was
not free from doubt the Ministry of Mines were bound to refer the matter to the
Sublime Porte for instructions. The decision of the Sublime Porte does not become
operative until it has received the Imperial sanction. The Council of State were
consulted in the course, and as part, of the reference to the Sublime Porte, and though
their opinion w r as to the effect that the Mining Law applied to these tw r o vilayets, and
therefore certain of the prospecting licences might issue, it has never received the
Imperial sanction. The opinion given by this body does not therefore appear to he
final or conclusive, nor does it appear to exclude the necessity of an appeal by
Mr. Silley to the Turkish courts if he considers that the refusal of the licences was
contrary to Turkish law. It is certainly impossible for Sir E. Grey to pronounce a
final opinion on the effect of the statement of views made by the Council of State, as it
is a matter of the constitutional law in Turkey, and therefore a matter as to which
he can only accept the statements made by the Ottoman Government, until Mr. Silley
is in a position to demonstrate that the Turkish view is erroneous.
The result is, therefore, that Sir E. Grey can only accept the assurances of the
Ottoman Government that the concession for the Civil List, since transferred to the
Ministry of Finance, is in force, that it prevents the issue of prospecting licences, and
that the contrary opinion expressed by the Council of State has not received the
Imperial sanction, and imposes no obligation on the Ottoman Government.
It is impossible for Sir E. Grey to adopt any other attitude, because there are
other claimants to rights in the oilfields in Mosul and Bagdad whose claims depend
upon the validity of the concession of the Civil List, and these parties are equally
entitled to the support of the Secretary of State. If it could be shown by appropriate
proceedings that the concession was invalid, and that the parties claiming thereunder
had no rights, and that the Ottoman Government were wrong in maintaining the
opposite, the obstacle to the issue of certain licences under the Mining Law would
disappear. Apart from other difficulties (which might prove legally insuperable, but
do not now call for special mention) in regard to certain of Mr. Silley’s claims, he
would, if he could show that his claims were British at the time of the refusal of
Renees, possibly be entitled, in respect of some of them, to the support of His
Majesty s Government in endeavours to obtain their issue. But the decision of the
Council of State is not sufficient to show that the concession held by the Civil List or
t e " mis try of Finance was invalid, or that it is no longer in operation, and until the
a jove particulars can be satisfactorily settled, Sir E. Grey has no adequate ground for
contesting the view of the Ottoman Government.