File 3877/1912 Pt 4 ‘Turkey in Asia: oil concessions’ [‎92r] (125/176)

[This Document is the Property of His Britannic Majesty's Government.]
f p 1
'9197 !
TURKEY.
CONEIUENTIAL.
C.
[May 4.]
[19856J
1 -
Central Mining and Investment Corporation to Sir E. Crowe.—(Received May 4.)
Sir, 1, London Wall Buildings, London, May 4, 1914.
REFERRING to the conversation which Lord Murray of Elibank had the honour
of having with yourself and Sir William Tyrrell on Friday afternoon, the 1st May, we
beg to be allowed to submit for your consideration the following facts regarding the
concession for oil rights in the vilayets of Mosul, Bagdad, and Basra, which for
some time past we have been endeavouring to secure from the Imperial Ottoman
Government.
The possibilities of the useful employment of capital for the development of an oil
industry in the territories named have been under our consideration for a considerable
time past. During the latter half of 1913 a group representing London capital, and
comprising ourselves, S. Pearson and Son (Limited), and Messrs. L. Hirsch and Co.
(acting in part for third parties, all domiciled in Great Britain), entered into an
agreement with Baron de Ward, under which the concession was to be obtained by that
gentleman on behalf of a Company to be formed under Turkish law, the whole of the
share capital of such Turkish company in turn to be held by a British company to be
formed under the English Companies Act.
Apart from the exploitation of the oil, it is the intention, in the event of the
concession being secured for the group mentioned, to secure rights for the transporta
tion of oil both to the Mediterranean Ocean and Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , and provision is made in
the draft “ cahier des charges ” (copy of which is annexed hereto*) for the refining of
the product, &c. . . .
At the time of the formation of the group above detailed it was felt that, in view
of the negotiations which were known to be pending between llis Majesty s Govein-
ment and the Imperial German Government, and dealing with die settlement of a
number of questions, it would probably be necessary eventually to include othei paities,
and the arrangements made, therefore, were to the effect that, of the capital to )e
provided, each party should subscribe 25 per cent., the remaining 25 per cent, being
reserved for emergencies, as will more fully appear from the enclosed mcmoian um,
submitted to our solicitors at the time for the purpose of drawing up the necessary
agreement. At a later date it was brought to our notice that it would be necessary to
allocate a portion of the rights under the concession we are endeavouring to secure to
German capital. We thereupon approached firms in Germany, and have arrived at an
agreement with houses of undoubted standing, the arrangements between t ic 11 is i
and German parties being set out in a letter, copy of which is enclosed," and Iroin
which only the date and the names have been eliminated in accordance with tne
provisions of the letter itself. As part of the understanding, thong i not em oc ^ 11 |
the letter itself, a further agreement exists, as per copy of memorandum enclosed, And
which has been initialled by the parties, the dates and initials being again onn .
We further enclose copies of extracts from the cable correspondence with Oonstantmople,
from which you will perceive that our advices are to the effect ia ie mp
Ottoman Government appears willing to grant us a concession on e .
“ cahier des charges ” prepared by us, but insists upon the disclosure of the names o
the German group. . . .
a 1 We have, Ac.
(For the Central Mining and Investment
Corporation, Limited),
* L. REYERSBACH, Director.
Not printed.
[213G <2—4]
H1AY1914
9 MAY 1914