File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎359v] (284/338)

circumstances he personally recommended us to settle for 1,500Z. per annum (at that
time knowing nothing of a proposed loan to the Sheikh, of course) he considered that
we should have got better terms if he had tackled the matter some months previously,
as we had intended him to do.
10. We know absolutely nothing of any arrangement or suggested arrangement fc^
paying Swintharis or any other people 1,000/. per annum or any other sum for pipes
passing through their territory, and we think that this must be a mistake on Major
Oox’s part.
11. So far as I can tell, the six numbered clauses describe our requirements fairly
accurately, accurately enough for present purposes in regard to Nos. 3, 4, 5, 6, and as
regards 1 and 2 if these are detailed in the words used in the draft agreement attached
to Mr. Reynolds’ letter to Major Cox, dated the 30th April enclosed, they will be
acceptable to us. The lease will be from the Sheikh to the Anglo-Persian Oil Company
not to the concessions syndicate.
12. As regards the length of the lease, it must be coextensive with our concession
from the Persian Government and any extension thereof. This last appears to be the
most serious point of divergence between the Sheikh and my company.
13. Of the two alternative methods of paying rent offered by the Sheikh I am
prepared to accept the decennial method of paying 6,500/. in advance. And I think
that if this be given, the loan might stand at the original figure of 6,000/. as otherwise
the Sheikh will be getting paid down now, for rent and loan combined, 16,500/. plus
whatever amount the British Government may be advancing to him.
14. With regard to the Sheikh’s four conditions, we cannot agree to No. 4 as I
have already stated in paragraph 12 hereof.
15. No. 3 I agree to, provided always that petroleum be not included as treasure
trove, for on petroleum, if found, we are already paying to the Government of
Persia.
16. No. 2.—The second stipulation, that we shall not interfere in tribal affairs, we
agree to, and subject to my being sure that I understand the first part I would agree
to it also. I can see no objection to our abstaining from engaging any of the Sheikh’s
tribesmen without his cognizance, but it might obviously lead to great inconvenience if
at any time during a man’s engagement the Sheikh had power to call upon us to dismiss
him unless he (or we) did something or other for the Sheikh.
17. No. 1.—Clause 15 of our concession from the Imperial Government of Persia
reads as follows :—
“ On the expiration of the terms of the present concession all materials, buildings,
and apparatuses then used by the company for the exploitation of its industry shall
become the property of the said Government and the company shall have no right to any
indemnity in this connection.”
We cannot consequently give the Sheikh a good title to machinery, plant, and
buildings, as against the Government of Persia. All we can undertake to do, is not
to remove any machinery, plant or buildings at the end of our lease, thus leaving the
Sheikh and the Persian Government to settle the question of ownership between
them.
18. As regards the last sentence in Major Cox’s telegram No. 486 Mr. Reynolds,
who is in possession of a copy of Mr. Andrew Campbell’s letter of the 27th November,
1908, together with a copy of the sketch attached thereto, should be in a position to
select provisional sites subject to provision No. 5 detailed by Major Cox, and I think
that we may presume from the detail given in his draft agreement that he has done so.
19. Mr. Reynolds is coming home on leave shortly, and partly for this reason and
partlv in consequence of your otfice letters Nos. 15593 and 15910 of the 27th April and
1st May, Mr. J. B. Lloyd, one of the partners of Shaw, Wallace, and Co. of Calcutta,
Bombay, &c., has gone to Persia (I believe him to be now in Mohammerah) to take charge
of all the company’s affairs, and with plenary power from the company to negotiate this
land and all* other questions.
20. If after reading this, you can spare me a few moments at any time convenient
to you on Tuesday or Wednesday next, I will gladly call upon you and thereby save
you both time and trouble in regard to the matter of a reply to Major Cox.
I have, &c.
E. W. WALLACE, Vice-Chairman.