'File 14/115 VII Annex (B 9) Abu Musa oxide: collected background material on the case' [‎174v] (359/1904)

28
raent being kept secret from the partners. This
letter also expressly recognises the possibility of
the cancellation of the contract by the partners,
if they considered it advisable.
When Malcolm did ultimately receive a copy
of the agreement in December 1906, the contract
was already six months old, and while he was still
considering what action to take the situation
was completely changed by the cancellation of the
concession by the sheikh.
His Majesty's Government do not dispute the p- 19*-
fact that Abdul Latif, on behalf of Esa, did not
object in 1905 to the sale of oxide to Wonckhaus
at a fixed price, but, as it is not suggested that the
contracts of that date contained the provisions to
which he did afterwards object, it does not
affect the present question. As regards his letter
of the 14th June, 1906 (First British Memorandum,
Appendix 12)^ His Majesty's Government, must
repeat that no weight can be attached to any
expression of approval (if such can be aeduced
from the terms of the letter) given in ignorance of
the terms of the contract. The non-disclosure of
material terms would be held fatal by any
court in which it was sought to rely on any such
expressions of approval as constituting a ratifica
tion of the contract. And the letter expressly
warns Hassan against entering into any contract
which would give an outside party an excuse Tor
claiming rights in the island. Such warnings had
been given before, and Hassan had disclaimed any
intention of entering into such a contract. In
addition to the documents already quoted in this
connection, reference may be made to two letters
from Hassan to Abdul Latif, dated respectively
the 30th January, 1905, and the 5th July, 1906
(Appendix 23).
No doubt Hassan's object was to conceal the
terms of the contract from his partners for as long
as possible, in order that when they were ulti
mately discovered he might be able to say that the
contract had been in operation so long that it was
impossible to go back on it
When Abdul Latif had an opportunity of
examining the terms of the contract he objected
in the plainest terms, and announced his resoru w-Oii
of cancelling the contract.
The German Government contend that the p. 20.
sentence in Abdul Latit s letter ox the 2orcL