File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎360r] (285/338)

Inclosure 1 in No. 1.
Mr. Reynolds to the Concessions Syndicate, Glasgow.
Dear Sirs, Bussorah, April 24, 1909.
, 1 , HA , , * h ® Il0 ! 10l ! r to own receipt of a wire from you, via, Bagdad and dated the
• i f ' "' "‘'I 1 reac hed me on the 18ch idem, which was it is believed,
intended to read :—
• ■^• SC j r ^ a ” 1 i^ m c(liately and telegraph what are the best terms on which you can
obtain land for refinery, also as to land and guard tor pipe-line, in the territories of the
bheikh ot Mohammerah. Arrange to carry out suggestions of Cox.”
On my wiring you by Fao and dehranon the 1 8th that which should read : “ Have
recervedyoui cable of 14th to-day. Repeat fourth, fifth and ninth words of cable.” I
received on the 20th your reply, via Aleppo, which bore the same date and by it I was
enabled to read yours of the 14th, receipts of which I own above.
2. At the risk of being prolix, in your opinion, I would state that the Sheikh of
Mohammei ah has two confidential men attached to him, Mulla Humza, in respect of
matters in lurkey, and Hadji Rais, as he is called for Persian matters, and in a matter
such as the acquisition of land by us on the Shat-el-Arab, he would probably consult
both these men.
On the afternoon of the 20th, in response for a request for an interview, I had a call
from Mulla Ilumza and a chat on the subject and he assured me he would write and do
his best to forward our wishes.
I he same day I asked Mr. McDouall, His Britannic Majesty’s consul at Moham
merah, to arrange an interview with Hadji Rais and it was only yesterday, in the
morning that I saw him, and the Sheikh himself, with Hadji Rais, in the evening.
3. This man, Hadji Rais as he is called, is the power behind the Sheikh, and he
can make or mar our negotiations with the Sheikh,’being at the present time the
strongest man in Arabistan, in consequence of which he has to be propitiated, and then
the negotiations with the Sheikh will be comparatively easy to put through.
4. My meeting with Hadji Rais was friendly enough, and it was clear he was glad
that we were thinking of establishing a refinery at Abadan Island, on account of the
advantage that Mohammerah would reap thereby, for I should tell you that I have
always tried to put them off all idea of this, and said that my principals appeared to
favour Bunder Dilam, by reason of its passing near to Kai Kaous in the pipe-line
route.
To obtain his good offices he quite unblushingly asked for 1,000 shares on the
understanding that they were of a value of 1/. each, and added he wished to buy another
1,000 shares and that he could sell many shares among the people about.
It is on this understanding that he agreed to do his best with the Sheikh of
Mohammerah on our behalf, and the matter is alluded to in my wire of this date.
5. In the afternoon I visited the Sheikh of Mohammerah with Hadji Rais, and I
gathered that the choice of sites was to them of no importance, and I named the northern
,as most suitable, for the reasons previously given.
I was then asked to name a price that I thought fair to pay for the land on lease
for so long as the concession lasted, and the right to lay the pipe-line through his
country.
To be brief, I named about 1,200/. per annum, and after some discussion the Sheikh
asked me to name 2,000/. per year as the figure he wanted, and all cost of guarding to be
on the company.
Then it was inexpedient to press for settlement of the many petty details which
go to make a good and workable agreement, for it was late in the afternoon and
I trusted to your accepting a figure of say 1,500/. per annum, when details could be
discussed and agreement drawn, for which by the v ay 1 need your permission.
I do not think that you will do better than this now, though had it been done some
few months ao-o it had been better, as then the news of the formation of the company
would not have raised their cupidity, and the public news telegrams afforded them this
information by the assistance ol His Britannic Majesty s consul at Mohammerah. \ ou
though are aware of the causes of this unfortunate delay and are now aware that it was
only on the 20th April that I had your authorisation to go ahead, acting on Major Cox’s
J<h ’ On my return here I wired, or hoped to wire you my message dated the
24th April, of which I enclose translation and original for your information. You will