'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎14r] (27/80)

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year 1928 relative to the revision of the D’Arcy Conces
sion having been carried on continuously to the spring
of 1930, and further prolonged discussions relative to
the assessment of royalty having been carried on before
and since.
t
On the 3rd June 1932 the Company’s accounts for
the year 1931 had been completed and, as is customary,
the provisional royalty figures thus ascertained were
cabled to Tehran. It should be noted that the figures for
royalty in the published accounts are provisional as they
cannot be absolutely determined at the relatively early
date when the Company’s accounts are published.
Furthermore, under the terms of the 1920 Agreement,
the Persian Government is entitled to examine the
accounts and within an interval of six months to
challenge any points in the statement of royalties with
which it is not in agreement. Until the current year
this procedure has been followed.
On the 8th June the Resident Director reported that
the Persian Government had protested regarding the
smallness of the provisional royalty figures for the year
1931 (£306,872 # as compared with £1,288,312 in 1930),
and had requested that its representatives should have
full facilities to examine the figures. This was at once
agreed. These facilities have always existed and have
consistently been exercised by the Persian Government
representatives.
At the same time it was also reported from Tehran
that the Persian Government considered the initialled
*Note—
“ Royalty ” includes royalty payable by the First Exploitation Company Ltd.
.£172,122, as we ll as £134,750 payable by the Anglo-Persian Oil Company Ltd.
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