Coll 17/21 ‘Iraq. Oil in – ’ [‎3r] (5/178)

Minute Paper
Department
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MOSUL OIL
FIELDS
CONTROL ACQUIRED BY
ITALIAN INTERESTS
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It was officially Enounced last night
that Sir Edward M. Mountain and Mr.
L. C. Patterson have resigned their
directorships of Mosul Oil Fields and its
associated, concern, British Oil Develop
ment Company. The resignations have
been accepted. Mr. F. W. Rickett, who
secured the recent Abyssinian concession,
was closely associated with the original
promotion of the British Oil Development
Company.
Mosul Oil Fields, Limited, a private
company with an authorized capital of
£1,850,000, was registered in 1932 to
acquire all the shares of the British Oil
Development Company, which was
granted a concession of about 45,000
square miles from the Iraqi Government.
According to the 1935 Stock Exchange
Year-book, Viscount Goschen, the chair
man, was supported on the board of
directors by,, among others, two Italians,
one Frenchman, and two Germans. The
new board of directors, omitting Sir
Edward Mountain and Mr. Patterson,
consists of 13 members, and includes five
Italians, one Frenchman, and two
Germans. The Press Association was in
formed that Italian interests have acquired
sufficient shares to have control in both
companies, which were formerly managed
by British interests. .
Sir Edward Mountain refused to make
any comment last night on his resignation.
The B.O.D. Company had long dis
cussions this year with the Iraqi Govern
ment regarding the building of a
£3,500,000 railway from their oil wells at
Quaiyarah to Tel Kuchuk.
Sir Edward Mountain was deputy chair
man of Mosul Oil *Fields and B.O.D.
Company, and is chairman and managing
director of the Eagle Star and British
Dominions Insurance Company. The
official announcement of' Sir Edward
Mountain’s and Mr. Patterson’s resigna
tions states that “ no other resignations
have taken place recently.”
Mr. William R. Brown, another
director of Mosul Oil Fields and the
B.O.D. Company, denied the suggestion
last night that he also had resigned. “ I
have not yet resigned,” he said, “ but I
am considering what steps I shall take.
Some time ago a meeting was arranged
to be held in London. It was cancelled,
then held a day or two later in Paris. I
am one of the original directors.”
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ITALIAN INTEREST IN
MOSUL OILFIELDS
STATEMENT BY MR. F. W.
RICKETT
Mr. F. W. Rickett, who recently ob
tained an oil concession from the Emperor
of Abyssinia, last night made a statement
about his position in relation to Mosul
Oilfields and its associated concern, British
Oil Development.
The resignations of Sir Edward Moun
tain and Mr. L. C. Patterson from the
boards of these companies were an
nounced on Monday.
Mr. Rickett was closely concerned with
the formation of British Oil Development
Company, the shares of which were
acquired by Mosul Oilfields in order to
exploit a concession obtained by the
B.O.D. Company in Iraq.
I have had no connexion with the manage
ment of either of these companies for the last
two years (Mr. Rickett stated). I withdrew
when it became obvious to me that the control,
which I considered it was absolutely essential
should remain British, would pass into Con
tinental hands. My only interest now is that
of a large shareholder. It is, of course, a vital
condition of the concession that the company
owning it must be British, have a British chair
man, and have its offices in Great Britain. This
doubtless explains Lord Goschen's retention of
the chairmanship of these foreign-controlled com
panies. Mr. William R. Brown is, it is under
stood, also retaining his scat on both boards at
the request of the original British shareholders,
of w'hom he was one, as otherwise these would
be entirely without representation.
The new boards include five Italians,
one Frenchman, and two Germans.
Commenting yesterday on the reasons that led
to his resignation from the boards of Mosul
Oilfields and the B.O.D. Company, Sir Edward
Mountain stressed the continued cordiality of
his relations with the companies concerned. His
resignation, he said, was entirely due to his
appreciation of the fact that the recent
strengthening of Italian interests in the com
panies, as a result of their payment of the dead
rent on the concession, should be proportionately
represented on the board of directors.
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2956
6000 7 34