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File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎274r] (113/338)

The record is made up of 1 item (168 folios). It was created in Apr 1909-Jul 1919. It was written in English. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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/l
[Confidential]
|S2x>
191
(1) Mohamtnerah letter No.
October 1910, with enclosures.
1910.
No. 3007, dated Bushire, the 6 th (received 22nd) November 1910.
From —Lieutenant-Colonel P. Z. Cox, C.S.L, C.I.E., Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ,
To—The Secretary to tne Government of India, in the Foreign Department.
With reference to my letter No. 2647, dated 2nd October 1910, I have the
honour to forward, for the information of the Government of India, copies of the
1212 , dated 28 th communications marginally cited which
have since passed between His Majesty’s
(2) Bushire letter No. 3005, dated 6th November Consul, MohammCrah, and myself Oil the
subject of the desire of the Anglo-Persian
Oil Company to bore for oil in Mohammerah territory, and the expediency
of coming to a friendly understanding with the Shaikh in regard thereto.
Copy forwarded to Tehran.
No. 1212 , dated Mohammerah, the 28th October 1910 (Confidential).
From—Lieutenant A. T. Wilson, I.A., Acting Consul, His Britannic Majesty’s
Consolate for Arabistan,
To—The Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , Bushire.
With reference to the correspondence ending with my letter No. 906, dated
27th August 1910, I have the honour to forward copies of further correspon
dence which has reached me on the subject of the proposal of the Anglo-Persian
Oil Company, Limited, to drill at or near Ahwaz.
2. It will be seen that the Managing Director is prepared to put before his
Board a proposal that the company should
to cZi S X teVmo. undertake to pay to the Shaikh 3 per cent.
on the profits of any oil obtained within
his territory, and asks for an expression of your views on this proposal.
3 . It appears that this propo>al was in Mr. Lloyd’s mind when the agree
ment between the Company and the Shaikh was in the making at Ahwaz, and
as it is substantially the same as the present arrangement between the Comjmny
and the Bakhtiari Khans, it is difficult to understand Mr. Lloyd’s statement
that “ it was not in his mind at all that this friendly arrangement should be on
the basis which was made by the Company with the Bakhtiari”. I submit,
therefore, that my interpretation of the undertaking, as given in my letter,
No. 903 of 26th August to the Company, is substantially accurate.
4. If this arrangement be agreed to by the Board, I foresee no difficulty in
negotiating a mutually satisfactory agreement between the Shaikh and the
Company, the rent for the lands being nil until oil is struck, and not over £1
per acre if this contingency should fortunately occur.
Dated the 30th August 1910.
From— Messes. Lloyd Scott & Co., Ld., Managing Agents, AnglorPersian Oil
Company, Ltd.,
To—His Majesty’s Consul for Arabistan.
We have the honour to acknowledge and thank you for your letter
No. 904, of the 27th instant, contents of which we have carefully noted.
We will submit your letter to our Directors for their consideration, but we
have the following remarks to make in connection therewith : —
So far as this Company is concerned, His Excellency the Shaikh of
Mohammerah has no locus standi in the matter. The Persian Government
sold, in 1901, certain rights and privileges to this Company. As you are aware,
a very heavy price was paid for these. If, on the Company proceeding to
exercise these rights, obstruction is placed in its way by a second party who
claims that the Persian Government sold to him also the same rights and at a
heavy price, the Company’s recourse against such obstruction lies not with
that second party hut with the Persian Government.
This seems to us to be a case where the Company must, if and when it
becomes necessary, rely on Tehran to accomplish its aims, looking to the fact
that it merely seeks to exercise a right bought from and paid for to the Persian
Government.

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Part 3 consists of correspondence relating to an agreement between the Anglo-Persian Oil Company and Shaikh Khazal-Bin-Jaber [Khaz‘al bin Jābir bin Mirdāw al-Ka‘bī] of Mohammerah [Khorramshahr]. The correspondence is mostly between the Government of India (Foreign Department), Foreign Office, and India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. . Included as enclosures are letters, telegrams, and memoranda from the following:

Several matters are covered by the papers, including:

  • the negotiations over a loan to Shaikh Khazal by the Anglo-Persian Oil Company for the use of land on Abadan Island for an oil refinery;
  • the question of what is to be done with company buildings on the island when the concession period ends;
  • the nature of Shaikh Khazal's rights to the land in question;
  • the Persian Government's exceptions to some of the terms of the agreement;
  • the question of guards for the refinery and who will pay for them.
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1 item (168 folios)
Written in
English in Latin script
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File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎274r] (113/338), British Library: India Office Records and Private Papers, IOR/L/PS/10/144/1, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100030500368.0x00009d> [accessed 29 March 2024]

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