File 1421/1908 Pt 4 'Persia: oil; Anglo-Persian Oil Co and Bakhtiaris' [‎191r] (239/292)

[This Document is the Property of His Britannic Majesty’s Govermnp.nt.]
PERSIA.
[August 20.]
CONFIDENTIAL.
Section 3.
[31382] No. 1.
Sir G. Barclay to Sir Edward Grey.—(Received Auqust 20.)
(No. 148.) ‘ y V y '
Gulahek, July 29, 1909.
IN my despatch No. 89 of the 28th April I forwarded copy of a despatch from
His Majesty’s consul at Ahwaz on the subject of the shares to be allotted to the
Bakhtiari khans of several companies to be formed for the exploitation of the oil-fields
of Arabistan. In this despatch Captain Lorimer expressed his fears lest the interests
of the khans might be ignored, and at the time I vras inclined to think that there
might be some ground for his fears. Subsequently I had the opportunity of perusing
a private letter from Mr. Preece to a friend in Tehran (extract enclosed), which left me
in some doubt as to whether my first impression was correct, and after a further study
of the prospectus of the newly-formed Anglo-Persian Oil Company, and of the agreement
with the Bakhtiaris, I dispatched my private telegram to Sir C. Hardinge of the
28th May.
The question of the treatment of the khans by the company has now again been
raised in a despatch from Mr. Banking, copy of which I have the honour to enclose
herewith. In this despatch Mr. Ranking gives extracts of a letter addressed by
Mr. G. B. Reynolds, general manager of the Anglo-Persian Oil Company, to the Sardar Leader of a tribe or a polity; also refers to a military rank or title given to a commander of an army or division.
Muhtasham, the terms of which are far from clear, and are certainly open to an
interpretation differing from that given in Mr. Preece’s letter.
I have, in reply, instructed Mr. Ranking to point out to the manager of the
company the misleading impression conveyed to the khans by his letter to the Sardar Leader of a tribe or a polity; also refers to a military rank or title given to a commander of an army or division. ,
but it might also be well to suggest to the company that, in order to prevent future
misunderstanding, it should be made perfectly clear to the khans how they stand as
regards the different companies.
I have, &c.
G. BARCLAY.
Inclosure 1 in No. 1.
Consul Ranking to Sir G. Barclay.
(Confidential.)
Sir, Camp Ispahan, July 18, 1909.
I HAVE the honour to address your Excellency on the subject of the shares due
to the Bakhtiari khans from the Anglo-Persian Oil Company.
During my recent tour through the Bakhtiari country I obtained information that
the Anglo-Persian Oil Company had written to the khans with regard to the shares due
to them under agreement.
A translated extract of the Anglo-Persian Oil Company’s letter, inasmuch as it
deals with the question of shares, is given below.
Extract of a Letter in Persian, and signed by Mr. G. B. Reynolds, General Manager
Anglo-Persian Oil Company, to the Sardar Leader of a tribe or a polity; also refers to a military rank or title given to a commander of an army or division. Muhtasham, dated May 28, 1909.
“ (Compliments.)
“ In accordance with a letter No. 328, dated the 22nd April, 1909, from my directors,
telling me to give you the following information, I would inform you that a company
has been floated under the name ‘ Anglo-Persian Oil,’ and a second under the name
‘ Bakhtiari II [? Oil] Company,’ which latter will work in the Bakhtiari country.
“ In accordance with the agreement made with their Excellencies the Bakhtiari
chiefs, the latter will receive 3 per cent, of shares from these companies. That is
to say, that their Excellencies the khans will receive 3 per cent, calculated on the
capital of all companies which may work in the Bakhtiari country.
[2377 u —3]