Coll 28/85 ‘Persia. Relations with H.M.G. Anglo-Persian Oil Company.’ [‎17r] (35/380)

OUTWARD TELEGRAM
[This Document is the Property of His Britannic Majesty’s Government, and should be
kept under Lock and Key.]
3.662A/54.
L CYPHER]
DEPARTMENTAL n o. 2
PROM FOREIGN OFFICE TO TEHRAN.
I Q A
No. 125.
9th February, 1943. •
D. 11.30 p.ra. 9th February,1943
JJJJ
IMPORTANT. •; "
Persian oil representative here has approached Anglo
Iranian Oil Company with request for renewal for the auratio:
of the war of tfie "blackmail 1 ' agreement of 1940, under wnicn
payments to the Persian Government m respect of t *
were made up to £4 million for each of the years 1940 ana 1941
^^ask&ta^foWrS^lA^lSKropojIlf. '
SlStlS, b 8tar°?hTSrof n i9ll? relMs b 8 tl e » th«
parties.
o phairman of /uielo Iranian Oil Company states that he
had previously excluded 6 the idea of further "make-up" payments.
Rut Kanv now seem disposed to continue these payments in
SodifiefforS? Chairman P produeed following arguments m favour
of this course;-
(a) It would enable the Company to demand and secure the
withdrawal of various unfounded charges brought against th m
under the regime of the late Shah.
(b) It would enable the Company to secure Persian good
will for the post-war period, during which they
concession will be increasingly import ant.thatitwillno
innapr he sumorted by the presence of British torces in roreu
and g that it may well be open to attempted encroachments by
the Americans and others.
(c) It misht be possible to secure some prolongation of
the concession as a respectable cloak for the continuation of
the extra navments, while it should certainly be possible to
Sovide fo^the cessation of these extra payments at the end of
?he war, according to whatever definition may be given to that
phrase.
3. 'The following counter-arguments were put to the
Chairman
( 1 ) that there was no particular value in gating the
Persians to withdraw accusations which, according to g^Co p y,
should never have been brought . tlje P|^?^ n | hat ther e was no
SSjfthlTSp.ot o, it without
compensation;
(9 y \ that it was always undesirable to submit to
"blackmail > ohd b that'a continuation extortions*^
SruaS 1 .? ISbS e r«S l S S tMSs of an, kind in the
Middle Eastern area; (3)....