'File 14/15 Middle East Oil' [‎7r] (13/38)

found expression in the "Pravda" on 26 Sept 1922 us *oilows: "iik. iiaseicai Govornujer:-;
could never tolerate the establisha>ent on the Russo-Persi<-j] frontier of a foreign capa- <
talast undertaking, which could, at any time, transiorni its concession into a s.ilacary
base which would be a menace to Russia'*.
27. The Anglo-American proposal fell ohrouji. The follooiu. ye».r (1 >22) another
ijnerican Oil. Corporation, the Sinclair Consoliuateu Oil Corporation, asked for a con
cession for the northern area, and attempted to come to a workin. a.prcemc;iro v.it'h the
Russians for the transport of oil across Russian territory, but the Russians proved
intractable and the concession was never taken up,
28, Having thus foiled f*nglo-^..erican attempts 00 obtain concessions in Northern
Persia the Russians now made a bid to establish themselves in the area. In 1929, a
Russo-Pcrsian oil company, the Kovir Khourian Co,, Registered in Persia as a Persian Co,,
but mainly financed by the Russian Government, wae established to exploit an old oil
concession in the Semmn area,(originally granted in 1878 to Persian subjects and re
registered in 192k by their descendants who sold 75f> of their rights to the Russian,
KhAchtiara) • The company carried out a number of soundings Measurements of the depth of a body of water. in various places in N.E,
Persia buc failed to strike oil. The Persian Government subsequently caai.,ed that the
cqp^ession was null and void as it had never been ratified. In Rfu, che Persian
Government granted exploration rights in this area to the Amiranian Oil Company, an
idnerican-Pursian company, but the concession was abandoned in 1996. In 194k, the Royal
Du**Vi Shell and the Standard Vacuum Groups entered into negotiation ,rch chc Persian
Go\^rnment for concessions in the South-east of Persia. Once a,pan the Russians arrived
on che scene. In September 1944> k, Kavtaradze, Soviet i.ssistant Comi.iiasar for Poreign
fairs, arrived in Tehran with a" committee of oil experts, ostensibly to raise the
matter of the Khourian oil concession. However, after the first meeting with the Persian
Prime Minister (Saed), the Khourian question was never a__ain moocioncd. Instead,
Kavtar.adze demanded a new. concession giving the Soviet Governnonc ex-loratorj rijits over
an area «f 210,000 square miles in Northern Persia, from Azerbaijan co ^uchan, for a
period of 9 years, after which they (the Russians; would specify the aiv^s Ct^. v/iouod to
exploit. The Persians, not unnaturally, resasced tnis demand. Kavtaradze brought Very
strong pressure to bear. Doubtless he felt that he hau w ood car^s in his hanus. The
international prestige rf Russia stood very hi c .h, ana Russian troops were in oecapa-.-aon
in Northern Iran. Saed however held firm. Russian-engineered demonstrations in Tehran
and elsewhere, using the Tudeh Party, only served co strengthen che resistance of c.;e
majority of the Persians. British support and publicit/ helped co stren^then the Persian
resistance, and they now decided that no oil concessions would be gran ecu call after che
withdrawal of foreign trrops which was due to came place . itnan 6 months of due enu of
the war. Kavtaradze made no effort to disguise ins an..c-r.. In an.effort to a pease the
Russians, Saed resigned, and was replaced by bapat, Russian pressure contaneud until,
bn 2 December 1944, the luajlis, in a sudden show o.. resolution, rushev_ throu, h a Bill of
double urgency which forbade any Pers ian Prine a.in is tor, kenister, or Under ‘Secretary
from entering into any negotiation or signin' any agreement with re {> ar«.. to oil concessions
on pain of imprisonment, Kavtaradze’e fury knew no bounds* 4. week later he left for
^scovv, not before stating that he expected the Majlis to rectify its mistake.
29* The veto applied equally if course to British ana Americans and negotiations
fo joncessiors in the South-east by both groups were suspended.
30 . Events during the pas c few months show, that despite their failure bo obtain
official permission the Russians have by no means' renounced their aims in Northern Persia
Russian support to the Democratic Party's programme of autonomy for Azerbaijan is doubt
less designed to , .ive them a predominating influence in that area, ana reports have
already been received that the Russians are carrying out exploratory boring for oil in
the Tabriz area* Russian troops are still in occupation of the Qubv?r- proy-uCtos of
Northern Iran (Gilan, Mazanderan and Gurgan) and reports indicate c.wdc in these areas
too boring for oil is being carried out at a number of places, particularly in the Gur^an
area*
Iraq.
31. long ago as 1901, W.K. Dkfrey attempted to t >*t a Turaisti concession for
exploration in the territory which subsequently became Norchern Iraq. British oil
interests in this area however were for some years opposed by the Deutsche Bank, ana
oil
stalemate and considerable friction resulted. Finally, in March 19 14, a fusion oj. inter
ests was agreed Ujp*n, under the aegis of the British atu Ger -as Porei^i 0 . x ices, ana the
capital of the "Turkish Petroleum Company" widen Ljca.w •JvjvjJtk OtV/‘V/< 1