'F 80 File 82/34 I APOC Concession' [‎146v] (255/436)

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2. Under the above circumstances, as I intimated in my former note, the
Persian Government consider themselves justified in cancelling the D'Arcy
Concession, and they do not see any reason for the withdrawal of the cancellation.
I am also to point out that the Persian Government have always respected
their international obligations and have always endeavoured to formulate their
actions on the basis of righteousness and justice. But in the meantime the Persian
Government cannot in any way allow their unquestionable rights to be disregarded,
or permit the interests of the country to be exposed to waste. As the Persian
Government hope there exist in the present age listening ears in the world for
reasonable and just pleas, they have therefore never refused, and in fact have
always been ready, to set forth their difficulties and to expose to competent inter
national courts violations of the rights of the country. In the present instance, as
your Excellency, in the name of your Government and basing yourself on article 36
of the Statute of the Permanent Court of International Justice, alludes to a
reference to that court, I deem it my duty to draw your Excellency's attention
to the fact that, if the stipulations of the article referred to had placed the
examination of such questions within the competence of that court, the Persian
Government, of course, would not have hesitated at all to accept a reference to
that court, but it appears that the Permanent Court of Justice is not competent
for the examination of the differences which have arisen between the Persian
Government and the company, because article 36 of the said statute designates
the competence of that court in such a way, in all cases where reference to the
Permanent Court is made on the basis of the " optional clause," that the circum
stances of the present case do not correspond with them.
3. Your Excellency repeats in paragraph 3 of your note that you consider
the Persian Government as responsible for the losses which the company may
suffer.
The Persian Governmeut cannot understand how, while, on the one hand,
they have no participation whatever in the activities of the company and, on the
other, they have not interfered, and do not interfere, with the affairs of the
company, nor cause it any inconvenience, any responsibility can devolve on
them; and it is on the above grounds that I have the honour to reiterate that
the company itself is responsible for any losses which it may suffer.
4. Coming to the hints which always appear in your Excellency's notes to
the necessity for coming to friendly terms with the company, I venture to invite
your attention to the point that the Persian Government have never refused,
and, in fact, do not now refuse, to conclude a new agreement safeguarding
equitably the interests of both parties, and they have proved their good faith
in this connexion already in practice; and the reason why the Persian Govern
ment did not take measures, after the cancellation of the D'Arcy Concession, in
order to interfere with the company's institutions and still hold for the time
being to the same decision in the hope of attaining the desired result, is that
my Government have hoped that the company, instead of entering into the sphere
of disputes over principles and of judicial controversies, would not lose the
opportunity to send its duly authorised representative to Tehran in order
that he might enter forthwith into negotiations with the Persian Government
with the view of concluding an agreement which would safeguard the legitimate
interests of Persia. But in practice it appears unfortunately that His Majesty's
Government are perhaps not in favour of such an agreement between the Persian
Government and the company, because the threats and the intimidation that His
Majesty's Government are bringing to bear on my Government, and the unaccept
able demands that are put forward, prevent in practice both the Persian Govern
ment and the company from taking a single step towards reaching a mutual
agreement; and, although the British Legation has so far not interfered in the
discussions between the Persian Government and the company, it has now become
an obstacle between the two parties and has adopted an attitude which does
away at once with any hope of success in the conclusion of a new agreement with
the company; and the authorities (of the Persian Government) cannot but regret
that, although His Majesty's Government are certainly aware of the deceptions
practised on the Persian Government and of their losses, far from advising and
encouraging the company to take advantage of the good faith of the Persian
Government and to hasten to ameliorate their situation, are, on the contrary,
encouraging the company to resist by the pressure that they bring to bear on the
Persian Government.