'F 80 File 82/34 I APOC Concession' [‎233r] (410/436)

-v
Sixth article. —The Persian Government has not consented to the
adjudication of the League in regard to the substance of the dispute. They
have no intention of doing that. All they are doing is to complain to the
League of the interference of His Majesty's Government in an internal
question. Our courts are open to all who may wish to apply to them. A
number of other firmans have been cancelled, e.g., the firmans connected with
the grant of " tuyul " (feudal dues); firmans connected with the transfer of
crown lands; the firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). concerning Abadan; the firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). concerning the
banks of the Karun River, held by the Sheikh of Mohammerah. To sum up,
the D'Arcy Concession is legally invalid, for the following reasons ; {a) It
was not ratified by the Majlis; (5) the grantor of the concession was ignorant
of what he was granting; {c) the reason for the obligation has disappeared;
and {d) deceit and fraud have been practised, and its conditions have not
been complied with.
Seventh article. —The Iraq Petroleum Company pays 25 per cent,
as a royalty, and guarantees £400,000 per annum. The terms of the D'Arcy
Concession make it clear that what was really in the mind of the grantor
was the surface oil at Shushtar, Qasr-i-Shirin and Daliki; no mention is
made of Masjid-i-Suleiman and Haft Khel.
Eighth article. —The question of the " consideration " for the agree
ment is discussed. The 16 per cent, has not really been paid. The
concession states (articles 9 and 10) that 16 per cent, had to be paid on all
subsidiaries, and (article 12) that Persians are to be employed in all
companies and institutions. The intention, therefore, was that all
subsidiary companies should be formed in Persia and not abroad. The
concessionnaire argues otherwise. This in itself shows that at the very
beginning there was no agreement, and therefore no contract.
Ninth article. —The company have deprived the Persian Government of
the possibility of controlling the accounts. They have also bought flour,
-ice and bread from India instead of buying such stores locally; and in
various other wavs acted contrary to Persia's interests.
5. The series of articles then stops. Teymourtache was relieved of his
duties on the 22nd December. It is not obvious why, with a prospect of the issue
becoming the subject of a judicial decision, he should have been at pains to produce
in such detail a statement which would make little appeal to the judicial mind.
I have, &c.
R. H. HOARE.