File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎275v] (116/338)

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2. In expressing Lis own ideas regarding: —
(i) The nature of the present rights of the Shaikh and his tribesmen
in the soil. ^
(ii) The terms which might fairly be offered him by the Oil Company as
an amicable satisfaction of them,
the Managing Director is good enough to say that he would be glad to know my
personal views.
3. A pronouncement in regard to the former problem seems to involve the
investigation and settlement of both the following points ;
(a) The precise nature of the tenure and rights, if any, over and in the
soil enjoyed by the Shaikh and his tribes, anterior to and at the
time of the grant by the Persian Government of the D’Arcy
Concession.
(b) The precise rights of the Shaikh and his tribes in the soil since the
grant of the former’s Firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). in January 1903, and how far
they hold good against the rights of the Oil Company under the
D’Arcy Concession.
Then again the following two queries seem to be suggestee by the
record;
(c) The Company having, in the Agreement with the Shaikh of 16th
July 1909, acknowledged that the right to treasure trove is
vested in the Shaikh; could they make good to him the argument
that the cognate right in regard to minerals is not also vested in
him ?
In this connection I would point out that, in framing Article 13 of the
Agreement which was finally concluded between the Company and the Shaikh
of Mohammerah, Mr. Lloyd and I in consultation were at pains, in the interests
of the Company, to alter the wording of the Article on this subject numbered
(11) in the draft sent to His Majesty’s Foreign Office with Mr. Wallace s letter
of 9 th June 1909, and to omit any pregnant allusion to minerals. The Manag
ing Director’s draft ran : —
“ (11) The Company as lessees of the land agree that all “ treasure
trove ” throughout the lands leased to the Company belongs to
the Shaikh alone. By “treasure trove” is meant go/d and silver
or precious metals in a natural state, or coins or objects of anti
quity of the same metals ”.
In the Agreement concluded this became: —
“ (13) The Company as lessees of these lands agree that all treasure trove
throughout the lands leased to the Company and other lands given
under this Agreement belongs to the Shaikh alone. By “trea
sure trove ” is meant coins, jewellery and objects of antiquity ”.
It will be noted that the words in Italics were omitted.
(d). Is it usual or necessary to regard the right to allow or disallow
boring for oil as a “ Mineral Right ” properly so called ? In
fact, is the question of the possession or non-possession by
the Shaikh of “ Mineral Rights ” generally, involved at all in
the present project under discussion ?
I do not feel qualified to give an authoritative answer on any of these
four questions, and merely indicate them to make it clear that, according to
my lights, the determination of the real position of the Shaikh and the
Company in regard to the question of the Oil Boring and “ Mineral Rights ”
would be by no means a simple matter.
4. Holding this view, I cannot help thinking that were the Company, in
connection with their contemplated boring operations, to raise acutely the
question of the incidence of “ Mineral Rights ” generally in Mohammerah
territory, His .Majesty’s Government would be a good deal embarrased to
decide what attitude to adopt towards it, and it would further seem to me
probable that, in regard to the larger question, British interests might be