File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎283r] (131/338)

-linclosure y m No. 1.
Notes on the Details of the Arte/b-PersianOil Company's Agreement with the
oheikh of Mohammerah, dated July 16, 1910.
,, , 1S r- Thl s article differs somewhat from the company’s draft. It was
thought best to specify what treasure-trove did cover, and not to put ideas into the
sheikh s head by stating what it did not cover. He himself raised the question of the
possible finding of oil in his limits. The rights of the company in this eventuality
were explained to him but he was given to understand verbally by the company’s
agents that in the event of separate springs of oil being tapped within his limits, the
company would be inclined to come to some friendly arrangement with him
Enclosure 10 in No. 1 .
Messy's. Lloyd, Scott, and Co. to Lieutenant Wilson.
TI 7 T 7 1 , . Mohammerah, August 26, 1910.
WE have the honour to advise you, in reference to your letter of to-day’s date,
that, when we cabled to London regarding the issue to his Excellency the Sheikh of
Mohammerah of 3 per cent of the ordinary shares of any company which might be
formed to produce oil at Ahwaz, we had before us the notes made by the Political
Resident m the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. at the time an agreement with the sheikh was being
drawn up, an extract from which is attached to your letter under acknowledgment.
further, m replying to us, as per extract and remarks submitted to you yesterday
our managing director had a copy of these notes before him also.
Our understanding of the note on article 13 of the agreement is that it was
carefu } explained at the time by 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. to his Excellency the sheikh
that, although he had no mineral rights whatever under his firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). from the Persian
^hich hold against the company s concession, still the company might be
willing to make him some gratuitous pa 3 unent in the event of oil being tapped in
Arabistan.
This has, hov ever, nothing to do with the prospecting and drilling work we
propose to undertake at Ahwaz. His Excellency the Sheikh would probably bring
the matter up, in the event of oil being found as a result of our operations at Ahwaz,
and in such case we would be pleased to ask our directors for their instructions in the
matter.
^ e R very improbable that the directors will again submit to the extortionate
robbery they had of necessity to suffer at the hands of the Bakhtiaris.
(For Lloyd, Scott, and Co., Limited),
JOHN BLACK, Manager.
Enclosure 11 in No. 1 .
Lieutenant W ilson to Anglo-Perslan Oil Company.
Oentlemen,^ Mohammerah, August 27, 1910.
I HA\ E to acknowledge receipt of your letters of the 25th and 26th August
regarding your proposal to bore for oil at Ahwaz.
2 . I gather that your company claims that it has the right under article 1 of its
concession to prospect for oil anywhere within the provinces covered by the concession
without asking leave or paying rent to anyone, the provisions of article 3 being held to
apply only to article 2 , and that, in consequence, your company is not prepared to make
au y payment to the Sheikh of Mohammerah for the right to prospect oil in his lands.
3. It further appears that your company, whilst prepared to compensate for the
surface value of the land taken up, is not prepared to pay the sheikh anything further,
? .ugh it might be willing to make him some gratuitous payment in the event of oil
3ei ng tapped in his lands, with the proviso, presumably, that it is tapped in paying
quantities.
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