'File 14/115 VII Annex (B 9) Abu Musa oxide: collected background material on the case' [‎63v] (137/1904)

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As the above shipment proved to be of good quality, and conu^an*. \ ; ween
at about 55s. per ton c.i.f. Hamburg, a contract was made m June ' A " i •_
Sumaya and Wonckhaus (copy of which I enclose^) whereby the former ^ ^
and tlie latter to purchase, a minimum quantity of 2,000 tons, ana a maximum ' , J,
5,000 tons of oxide per annum, over a period ot four years, the basis o 6 l ," Tr ,„ T1 f i
that the quality of the mineral was to be equal to that of the 700 ^ ®
Against this contract two shipments were made, viz., about boO to 1, _
the " Teutonia" in July 1907, and about 1,800 tons by the steamship Louise m
April 1908. As the former vessel foundered on her homeward voyage, 1 snail omy ^<1-
with the parcel brought by the steamer " Louise. .
So far as I have been able to gather, after a lapse of two years, there is stm
a stock of some 700 tons now lying at Hamburg, which Messrs Trauen, feturken, ana .o.,
the agents for Messrs. Wonckhaus, find considerable difficulty m selling, even m very
small quantities, owing to the quality being in every way inferior to the trial shipmen.
above referred to, being much darker in colour, and having on.y a dou ^ pei ce i, v. .. .
its staining power. They are now offering this stock at about 48s. f.o.b. Hamburg
without finding buyers. ^ ^ ,
In my opinion, which has been confirmed by one ox the largest puyers, -ne
difference in value between the trial shipment and standard Ormuz quality is aoout
12s. 6ci. per ton. Consequently the best quality _ Abu Musa wmud ^e wor n
(theoretically) about 30s. per ton f.o.b., as compared with Ormuz oxide at 42s. per
Presuming that the oxide could be shipped equal in quality to the trial parcel it
would, in my opinion, to a considerable extent supplant Ormuz oxicle, in view of the
fact that its cost f.o.b. is about 27s. per ton less than the price of the latter; and it
should be borne in mind that the annual consumption of this class ot oxiae m Europe
and America does not exceed 6,500 to 7,000 tons. ^ . 3
In conclusion, as regards Abu Musa, the position 3 as I understand it, is brieiky as
follows: —
Had the mineral shipped by Sumaya been equal in every respect to the trial
shipment, the contract would have been of considerable value to Messrs. vV onckhaus,
as the mineral could have been delivered, c.i.f., Hamburg at about 31s. and sold at
about 55s. per ton, or a net profit of, say, 24s. per ton ; but, with the primitive
methods of mining adopted by Sumaya, it is very doubtful whether he coula have
supplied the desired quality.
With regard to Ormuz, as far as I have been able to ascertain, there is still a
stock at Avonmouth of about 1,500 to 2,000 tons; and if to this is added ^ the shipment
of about 5,000 tons now being made by the steam-ship " Cliftonian," it brings up the
total supplies to about 6,500 to 7,000 tons, which quantity is sufficient, apart from any
possible"competition from Abu Musa, to satisfy the trade in Germany, England, and
America for over twelve months.
Doubtless a great deal of the foregoing, being ancient history, will not be of much
interest to you, but T think no harm can be done by laying the whole position as
clearly as I can before you.
Yours sincerely,
FRANK C. STRICK.
Enclosure 3 in No. 1.
Sketch of the Ahu Musa Case from its commenc 1910, with
comment on Germa Rejoinder.
Phase I.— The Events and Grounds which und Shargah
in withdrawing
IN the summer of 1906 the intention of the Hamburg-Amerika line to enter into
competition for the carrying trade to the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. at an early date became known.
In June 1906, about the same time, a report emanating from a British newspaper
correspondent in Constantinople was published, to the effect that Germany was
* Not printed.