File 2249/1915 Pt 4 ‘Oil: Mesopotamia & Persia. (General File) 1920–24’ [‎164r] (327/484)

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MESOPOTAMIA.
Oil.
46 and 47. Major ENTWISTLE asked
the Prime Minister (1) whether any
arrangement has been made with France
by which 25 per cent, either of the ex
ploitation of the oil wells of Mosul or of
the produce has been allocated to that
country ; and, if so, how that arrangement
is consistent with the policy of the Govern
ment in vesting the whole of the oil
; resources of Mesopotamia in the Arab
State that is to be set up ;
(2) whether his statement that no
arrangement of any sort or kind has been
made with any company with regard to
the oil of Mesopotamia, but that the whole
of the property will be vested in the Arab
State, is to be taken to imply that the oil
will be exploited either nationally by that
State or by the British Government on its
behalf ?
48 and 51. Mr. NEWBOULD asked the
Prime Minister (1) if he will state what
are the various arrangements made before
the War between Turkey and other coun
tries which will have the effect of pre
venting the whole of the oil resources of
Msopotamia belonging to the Arab State
that is to be set up ;
(2) whether any concession was granted
before the War to the Anglo-Persian Oil
Company for the exploitation of oil in
Mesopotamia; and, if so, whether such
arrangement will remain valid after the
setting up of the proposed Arab State?
49 and 50. Mr. KENYON asked the
Prime Minister (1) if he will state how
it is proposed to secure that the whole
of the oil resources of Mesopotamia will
belong to the Arab State that is to be
set up ;
(.2) whether, in view -of the fact that,
owing to the trustification of the oil
industry, the Arab State cannot secure a
fair price for the oil which is to be its
property by selling the right to exploit
it to the highest bidder, it is proposed to
hand over to that State the profits arising
out of the exploitation after the payment
of a commission to the exploiting com
pany or trust ?
tv V
60. Major BARNES asked the Prime
Minister if he will be able to lay upon
the Table the document under which the
oil fields of Mesopotamia are vested in
the Arab kingdom; if he will say who are
the signatories of that document; and
whether its terms have been communi
cated to the League of Nations ?
61. Colonel WEDGWOOD asked the
Prime Minister whether he can inform the
House what agreements exist as to oil in
Mesopotamia or the Mosul vilayet be
tween the old. Turkish Government and
private or national concessionaires; and
whether he will have the agreements laid
upon the Table of the House ?
The PRIME MINISTER: The owner
ship of the oil deposits in Mesopotamia
will be secured to the Arab State as
part of the administrative arrangements
under the Treaty and mandate. There
is no separate document dealing with
this point. No final decision has been
reached as to the method of working the
fields, but it is clear that due considera
tion will have to be given to rights
legally secured before the War. The
Anglo-Persian Oil Company is 'a parti
cipant in a group claiming such rights.
I am in communication with the French
Government in regard to the publication
of the terms of the Anglo-French Agree
ment in regard to Mesopotamia. In any
case the interests of the State have been
carefully safeguarded. It will obtain a
return on the whole of the oil won, in the
form either of royalties not yet fixed, or
of profit on oil sold, according to the
method of development adopted. As it
is not possible at this stage to say what
claims based on grants by the Turkish
Government may be put forward in the
various mandated territories, it does not
appear desirable at present to take the
course suggested by the hon. Member for
Newcastle-under-Lyme.
Lieut. - Commander KENWORTHY:
Aio the Arabs in a better position with
regard to mineral resources than the
people of this country ?