File 1421/1908 Pt 4 'Persia: oil; Anglo-Persian Oil Co and Bakhtiaris' [‎112r] (81/292)

[This Document is the Property of His Britannic Majesty s Government.]
at between the Anglo-Persian Oil Company and the Bakhtiari khans respecting the
subject of land acquisition. I now enclose copy of a despatch from Mr. Banking
forwardino- a copy of the agreement in question together with his observations on it and
the negotiations which led to its conclusion. _ „
Mr. Banking in the twentieth paragraph of his despatch points out the need ot
erecting at once the boundary pillars mentioned in the agreement, for until this is done
it will be difficult to bring home to the Bakhtiari khans any cases of trespass on the
part of their rayots. I concur in Mr. Banking’s recommendation, and hope that the
company may be urged to undertake the work immediately.
The conclusion of this agreement reflects in my opinion great credit on
Mr. Banking, who seems to have conducted these difficult negotiations with much
skill, and I venture to hope that his action may be considered to merit an expression ot
your approval.
IN continuation of my telegram No. 9, dated the 3rd May, 1911, from the
oil-fields, I have the honour to forward herewith, for your Excellency’s information, a
copy in Persian, together with a rough translation of same, of the agreement arrived at
between the Anglo-Persian Oil Company and the Bakhtiari khans regarding the land
acquisition question. ^ .
Before dealing with the agreement itself it may not be devoid of interest to briefly
review the main features of the negotiations, which culminated in its signature.
On the 6th February, 1911, before leaving Ahwaz, Mr. Greenway. managing
director of the Anglo-Persian Oil Company, handed me a memorandum regarding the
land question, in which he says that the company is willing to pay up to 23J- tomans 10,000 Persian dinars, or a gold coin of that value.
per jarib for the lands of Maidan-i-Nafthek, Maidan-i-Naphtun, Tembi pumping station,
pipe-line, and road, and on this basis a maximum sum was worked oup up to which
limit Dr. Young, the company’s representative, wus empowered to act. Unfortunately,
however, when computing this maximum sum, the company had no idea as to the
correct area of the lands they wished to take up, and having very much underestimated
it, a maximum was arrived at which was absolutely inadequate to meet the case. Just
before the negotiations Dr. Young, after consultation with Mr. Lamb, the managing
agent of Messrs. Strick, Scott, and Co., Mohammerah, and myself telegraphed to
London asking for a higher limit, which was fixed at 18 000/. . .
On my arrival at the oil-field on the 13th April, prior to the arrival of the Bakhtiari
khans, the situation which I found was one of disgraceful unprepared ness, owing, I have
not the slightest doubt, to proper orders not having been issued by those who^e dut> it
was to issue orders as to what was required in the way of maps, &c.
The map of the road, of which frequent mention has been made, was not ready, and
is not even ready to the present day, except in the form of a traverse in pencil, tiacings
of the maps of the lands to be acquired were not available, and the only areas which were
[2105 c — 12 ]
PEBSIA.
[July 3.]
CONFIDENTIAL.
Section 12.
[25672]
(No. 88 .)
Sir,
Sir G. Barclay to Sir Edward Grey.—(Received July 3.)
88 )
Tehi'an, June 9, 1911.
IN my telegram No. 153 of the 4th ultimo I had the honour to report that His
I have, &c.
G. BABCLAY.
(No. 22.)
Sir,
Consul Ranking to Sir G. Bay'day.
Enclosure 1 in No. 1.
Ahwaz, May 7, 1911.