File 2249/1915 Pt 1 ‘Oil: Mesopotamia & Persia: General File’ [‎107v] (219/478)

The capital of the Company shall be divided as follows :—
British interest .. .. .. • • • • 70 per cent.
Irench interest .. .. • • • • • • 20 »
Native Government interest .. .. . • 10 ,,
If the Native Government do not desire to participate to the extent of 10 per cent,
the balance shall be divided equally between the British and French holdings.
It is understood that one of the terms to be embodied in the lease to be granted tF"
the company to work the oilfields will provide that local native interests may participa-
if they so desire, up to 10 per cent, in the share capital of any subsidiary company whi<si
may be formed to work any of the oilfields, or, in the event of subsidiary companies •"ot
being formed, up to 10 per cent, of the share capital of the original company will be
specially provided for this purpose in addition to the amount allocated to native government
interests. This additional participation shall be provided by each group in proportion
to their holding.
In consideration for said participation the French Government shall agree to facilitate
by every means in its power, as soon as application is made, the construction of two
separate pipe-lines for the transport of oil from Mesopotamia and Persia to a port or ports
on the Eastern Mediterranean. The port or ports shall be chosen in agreement betwee
the two Governments.
Should the pipe-lines cross territory in which France has received a mandate, Frani
undertakes to use her good offices to secure every facility for the rights of crossing withoj
any royalty or wayleaves on the oil transported. Nevertheless, compensation shall 1
payable to the land-owners for the surface occupied.
In the same way France will give facilities at the terminal port or ports for t
acquisition by the Mesopotamian Company and the Anglo-Persian Oil Company of t
land necessary for the erection of depots, refineries, loading ‘ wharves, &c. Oil th
exported shall be exempt from export and transit dues. The material necessary for t
construction of the pipe-lines, refineries, and other equipment shall also be free frc
import duties.
This agreement in so far as it relates to pipe-lines, storage refineries, depots, loadi
wharves, &c., is entered into solely to facilitate the supply of petroleum and is in no w;
to be taken as implying that any territorial rights are in existence.
Should the Mesopotamian Company desire to lay a pipe-line to the Persian G
the British Government will use its good offices to secure similar facilities for that purpc
NORTH AFRICA AND OTHER COLONIES AND PROTECTORATES.
The French Government will give facilities to any Franco-British group or gror
of good standing, which furnish the necessary guarantees and comply with French la~
for the acquisition of oil concessions in the French Colonies, Protectorates and zonesi
influence, including Algeria, Tunis and Morocco. It should be noted that the Fre'
Parliament has resolved that groups so formed must contain at least 67 per cent. Frer
interests.
The French Government will not fail to grant to Messrs. Pearson and Son a concess
in Algeria as soon as they have proved the existence of oil in commercial quantities
have complied with all the requirements of the French laws.
BRITISH CROWN COLONIES.
In so far as existing regulations allow the British Government will give to Fre
subjects who may wish to prospect and exploit petroliferous lands in the Crown Colon
similar advantages to those which France is granting to British subjects in the Frer
Colonies.
This note supersedes and is in the place of the Memorandum of Agreement dated
6th March, 1919.
This Agreement has to-day been initialled by the Right Honourable Walter Long,
M.P., and Senator Henry Berenger, subject to confirmation by the British and French
Foreign Ministers respectively.
Paris,
April 8th, 1919.