File 3852/1912 Pt 2 'Persia. Conditions in South Persia. German Documents' [‎243v] (118/280)

Irak was inaugurated. The “Economist'' of December 11 th ,
1915, writes: The unfortunate Mesopotamian campaign was
undertaken principally to protect the interests of the important
oil fields which the admiralty had acquired.
The Persian Government was indemnified by 16 %of the yearly
net profits, and the tribe of the Bakhtiars in whose territory /
were the wells of the also purely English offshoot the Bakhtiai
Oil Co, with 3 % of the shares and a payment of £ 3000 p. a.
What remains of this net-profit for the Persian Government
when as in 1915 the working of the wells is disturbed by the
cutting of pipes (the work of some uncontrollable tribes), appears
from the words of the chairman at the annual meeting of the
A. P. O. C. (Morning Post December 21 st 1915,): “The Persian
Government were liable to make good to the company and to
the producing companies the whole of the losses consequent
upon the destruction of this oil and for the extra expendi
ture the company would be put to in consequence of the
interruption."
The third circular of the English Minister Townley brings
us right into the period of the world-war. The young Shah has
been crowned and immediately after this the cabinet has
resigned. The Regent, very accessible to English advice, has so
ordered the parliamentary elections, that the new parliament
is not fully assembled at the time of the coronation. Although
as is stated in the circular No. 1 of March 23 rd , 1914 “the
democratic element is entirely eliminated in the new elections",
that patriotic element which is so hostile to the Anglo-Russian
loans at usurious rates of interest and to the bartering away
of the last of the Persian rights 1 ), no absolute security is felt
even with respect to this new parliament. There are still too
many patriots in Persia! The shortness of funds persists, that
is to say, the danger of a new loan on ruinous terms, and besides,
as Russia is plundering the richest province of Persia, Azer
1 ) See the periodical “The New Statesman” January i s l> 1916, where
it is stated: All competent observers have however admitted that the honester
side in Persian politics, which is now along with much outlawed riff-raff
pro-German, is the democratic one. For the parties and persons mentioned
as being pro-Ally no respect can be entertained.