File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎275r] (115/338)

Extract from letter dated the 30th September 1910.
Concession. With reference to your correspondence with Lieutenant
W^ilson on the question of the Shaikh’s rights, I would point out that the
Firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). of January 19)3 only granted “ the said lands” and “ to exercise in
the said lands the possessory rights of ownership of every kind This in most
grants of this nature in other countries does not cover t- mineral rights”
which are usually held as being the property of the original owner, unless
specifically mentioned in the grant. Therefore the Shaikh’s claim is weak
in two respects.
( 1 ) His Firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). is of a later date than our Concession, and therefore was
subject to the latter, and
( 2 ) there is nothing to show that the Persian Government in granting
that t irman, ever intended to part with the mineral rights, which,
moreover, at the date of the Firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). , were not theirs.
However, it is obviously to our interest to maintain the good will of the
Shaikh and if we can, without in any way admitting any rights on his part to
minerals, get him to agree to some such arrangement as that suggested in my
last letter, it will be cons dered by my Board. I should, however, like to get
(through Lieutenant Wilson) an expression of Colonel Cox’s views on the
subject, as any suggestion from him would, I know, carry great weight with my
co-Hirectors.
Extract from a letter dated 23rd September 1910.
Drilliny at A hicaz. — With reference to the correspondence exchanged
between yourselves and Lieutenant Wilson, Mr. Lloyd states that the under
taking given to the Shaikh was neither more nor less than as stated in Colonel
Cox’s note, viz., that “ the Company would be inclined to come to some friendly
arrangement with him” and that it was not in his mind at all that this
“friendly arrangement ” should be on the basis of that which was made with
the Bakhtiaris under quite different circumstances. He, however, points out
that Lieutenant Wilson was not present at the portion of the interview when
this point was discussed, hut only came in at the end, when all the points had
been settled.
He says that what he had in mind was that the Shaikh might be given
in some form or other the equivalent of the “ 3 per cent, on profits” which is
what the Bakhtiaris will obtain by means of the shares they are to receive.
The difficulty is that these profits cannot very well be defined in a way that
would probably be satisfactory to the Shaikh, without the formation of a sepa
rate company- a step which my Directors would not for a moment consider at
the present time —but if you think the Shaikh would be satisfied with an under
taking from us to pay him 3 per cent, on the profits of any oil obtained within
his territory (such territory to be clearly indicated and not to be open to
question), such profits being based upon the same price for Crude Oil as is paid
to the Bakhtiari Oil Company, and the Anglo-Persian Oil Company’s state
ment of these profits being accepted by the Shaikh as conclusive and final, with
out any questior^ I will put the proposal before my Board, although I have
no reason for supposing that they would approve of such an arrangement and
that they might not rather abandon altogether the idea of working at Ahwaz.
No. 8005, dated Buskire, the 6 th November 1910 (Confidential).
From—Lieutenant-Colonel P. Z. Cox, 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—His Majesty's Consul, Mohammerah.
I have the honour to refer to your letter, No. 1212 , dated 28th October, and
previous correspondence, in connection with the plans of the Anglo-Persian
Oil Company for the inception of boring operations in the territorial limits
of the fehaikh of Mohammerah, and the terms which should or should not be
made with him in case of oil being tapped in paying quantity.