File 3877/1912 Pt 4 ‘Turkey in Asia: oil concessions’ [‎89r] (119/176)

[This BCs, iu oii.t is tLe Property;of His Britannic Majesty’s Goverr^^^t.,]
TURKEY.
CONFIDENTIAL.
[May 25.]
Section 1,
No. 1.
[23201]
Sir L. Mallet to Sir Edward Grey .—(Received May 25 )
(No. 354.) u ''
Sir > . ^ , Constantinople, May 20, 1914.
re i er ^ n ce tp the correspondence on the subject of the validity of
Mr. R. H. Sdley’s claims in connection with three oil deposits in the vilayet of Mosul
three in the Bagdad province, and three situated in the Basra vilayet and Nejd saniak,
I now have the honour to transmit, herewith enclosed, a full report bearing on the exact
position ol affairs. I much regret the delay which has taken place in its preparation,
but the compdation of the statement has involved the examination of a very considerable
numbei of documents in the possession of the Mining Department, which have not
always been easy of access.
It will be observ ed from this report, and my telegrams No. 289 of the 18th and
No. 291 of the 19th instant will already have informed you, that Mr. Silley’s claims
are based on :—
1. Five applications made by the Ottoman subjects to the authorities of Mosul and
Bagdad for the issue to them of licences for prospecting for oil at Hamam Ali Kifri
Tekrit, Dilim, and Mendeli;
2. An application made in the joint names of Mr. Silley and an Ottoman subject
for a licence to prospect at Baba Gurgur; and
3. Three applications made in the joint names of Mr. Silley and an Ottoman subject
for licences to prospect at Zobeir, and El Mukayesh in the Basra province, and at
El Hofuff in the sanjak of Nejd.
The applications for permits to prospect in the districts situated in the vilayets of
Mosul and Bagdad have had no result. No licences were granted, nor is the Ministry
in a position or free legally to authorise the issue of any prospecting licences for oil in
the two provinces mentioned, whilst the firmans of 1889, 1898, and 1902, which granted
the concession of all the oilfields in the provinces of Bagdad and Mosul to the Civil
List, continue to remain in existence and have all the force of law. It is certainly
hard to believe that Mr. Silley has been unaware of this serious impediment, as the
reasons for the refusal to grant prospecting licences for Hamam Ali and Kifri were
given in 1911, and for Tekrit and Dilim also in 1911, and it is, besides, quite inconceivable
that Mr. Silley should have interested himself financially in rejected applications for
permits without first investigating the grounds lor their rejection. It is also strange
that after the reasons for withholding the issue of permits in the two vilayets had been
given Mr. Silley should have associated himself in an application made in 19 J 3 for
permit for Baba Gurgur.
This is all the more inexplicable, as Mr. Silley, in an interview which he had with
the commercial attache of this embassy, led Mr. Weakley to understand that his
agreement or partnership with his Turkish associates was only concluded last August.
The question of the date on which he entered into an agreement with his friends could,
however, be easily made clear by Mr. Silley being requested to produce documentary
evidence proving his interest in these rejected applications.
His interest in the Basra applications stands on a different and more solid footing,
and His Majesty’s Government can afford him all proper support. In accordance with
your instructions, Mr. Silley was duly informed that he would have the assistance of
this embassy in his endeavour to obtain the concessions of the three oilfields in the
Basra province and in the Nejd sanjak. He was also given to understand that an
undertaking would be required from him to the effect that the capital to be engaged
in the development and working of these oilfields would be largely British, and that he
would not part with his rights in the oilfields without the consent of His Majesty’s
Government. Mr. Weakley had informed Mr. Silley that a communication in the above
sense would be made to him, and it was recommended that Mr. Silley should, in his
own interests, acquire all the rights of his Turkish associates in these applications in
order to place himself in a position to give the undertaking required. Mr. Silley has
not, as far as I am aware, carried out this recommendation, and consequently no written
communication has been made to him relative to the undertaking.
[2136 56 — 1 ]