File 1421/1908 Pt 4 'Persia: oil; Anglo-Persian Oil Co and Bakhtiaris' [‎158r] (173/292)

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^Ihis Document is the Property of His Britannic Majesty’s Government.!
PICKS LA.
CONFIDENTIAL
> '/'l,
21 OCT iycg
[October 7 .]
Section 2.
[37106]
No. 1 .
Sir G. Barclay to Sir Edward Grey .—{Received October 7 )
(INlo. 173.) v
^ !l ’ , v Gulahek, September 18, 1909.
IN continuation of my despatch No. 148 of the 29th July, I have the honour to
transmit herewith copy of a further despatch which I have received from Lieutenant
Hanking respecting the shares to which the Bakhtiari khans are entitled in the
companies rormed to exploit oil m their country.
This despatch is a reply to a telegram of mine, in which I directed Lieutenant
hanking to point out to the manager of the Anglo-Persian Oil Company that the letter
v <i a Avk + v° tile kk ans l 11 , Ap . nl last ( see inclosure No. 1 in my despatch
entitled ^ ^ hem Under & falSG lmpression as to the shares to which they were
In view of Lieutenant Ranking s observations, I have thought it well to instruct
him to postpone writing to the manager, as I had previously directed, pending a clear
statement from the company as to the allotment of shares to the khans. But while
instructing Lieutenant Ranking m this sense, I have informed him that I am unable
to agree with his interpretation of article 2 of the agreement between Mr. D’Arcv and
the khans m 190o, and have explained that that agreement had reference solely to oil
m the Bakhtiari country and that article 2 clearly refers to shares in companies
formed for the working of oil m that country, of which I understand there are now two
in existence, \iz., the hist Exploitation Company and the Bakhtiari Oil Company.
I have, &c.
G. BARCLAY.
Inclosure 1 in No. 1 .
Consul Ranking to Sir G. Barclay.
(No. 76.)
k lr ’ Camp, Ispahan, August 4, 1909.
L\ accordance with your Excellency’s telegram No. 26 on the subject of the oil
shares due to the Bakhtiari khans, I have the honour to submit the following observa
tions :—
1. It would appear from the clause in the agreement between Mr. W. K. D’Arcy
and the khans, an extract of which is attached herewith, that such remuneration,
outside an increase of guard money, as is due to the khans is to be calculated not on
t e capital of any one company or companies, but on the number of ordinary shares
issued and fully paid up.
2 . I would beg to point out that it most distinctly states in this clause that “ 3 per
cent, of all the ordinary shares issued,” &c., shall be given; and, further, that no
allocation of shares has been made to the various companies whereby the oil company
could justify the allotment to the khans of a smaller number of shares as being the
’ of so many shares appertaining to such and such companies working
in Bakhtiari country, instead of 3 per cent, on the total of shares issued (600,000) and
Lilly paid up, as is apparently their due.
3. That there is no stated connection between the words u after formation of one
or more companies to work oil in the Bakhtiari country ” and the words “ 3 per cent,
of all the ordinary shares issued.”
It appears that the intention, at the time when the agreement was made, was to
give the khans 3 per cent, of the total number of ordinary shares issued, otherwise
some determinatory expression, such as “ appertaining to the companies working in
akhtiari country,” would have been inserted after the word “ issued,” thereby clearly
.“g number of shares due to the khans to 3 per cent, of those appertaining to
Lie company or companies working in the Bakhtiari country.
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