'F 80 File 82/34 I APOC Concession' [‎235r] (414/436)

3
cause and our assurance in the sense of international justice and the uprightness
of the members of the Council that we are proceeding to Geneva; and we are
hopeful of a satisfactory conclusion of this affair.
Question No. 2.—Who will represent your country before the League in
this matter? If a special mission is being sent from Tehran, who will be its
head and its members ?
Answer No. 2. —Yes, a special mission is being sent to Geneva for this
purpose. The principal members of this mission are : His Excellency Davar,
the Minister of Justice, and his Excellency Ala, our recent Minister in Paris,
formerly Minister in Washington, and for several years a delegate of Persia
to the League of Nations. The said mission will leave for Geneva very shortly.
Question No. 3.—Pending settlement of the conflict, is there any possibility
that the status quo, as to operation of the fields, &c., will be disturbed 1
Answer No. 3.—The answer to this question has been given along with the
first question, namely, that the Persian Government, hoping to reach a new
agreement with the company, has definitely expressed her attitude of non
interference with the activities of the company.
Question No. 4.—On what right, either in the concession itself or in inter
national law, does Persia base itself in cancelling the concession ? What is the
purpose of the annulment—did Persia actually expect to take control of the
properties or was it a method of obtaining more favourable conditions? Does
the existing concession in any way hamper Persia's great plans for modernisation ?
Is its revision essential to His Majesty's policy of national unification and
economic advance?
A nswer No. 4.—It is an undeniable fact that petroleum is the most important
source of natural wealth that Persia possesses. In the modern world, even m
countries like the United States of America, whose economic power and prestige
is not comparable at all with that of Persia, petroleum is regarded as a valuable
economic asset. While Persia, unfortunately, owing to her geographical position
and to historical calamities, has been deprived of other sources of natural wealth-
lack of great rivers and the natural aridity of her climate are great obstacles
towards the development of her agriculture—there are also great natural
hindrances towards the development of an industrial Persia; m short, whatever
measures are taken for the advancement of either agriculture or industry, or m
the shape of road and railway construction for the betterment of commerce, &c
all are met with unsurmountable obstacles. As a result, the development ot
Persia requires a long period and a good deal of patience, and an enormous
amount of capital. r, ,
These being the circumstances, do you think the Persian Government can
afford to give up such an important source of wealth as her oil-fields, and overlook
the best interests of the country '! Now, I leave it to your good judgment; suppose
the oil resources of America had been leased to somebody on the basis of an idiotic
transaction, such as the D'Arcy Concession, how would the American nation feel
about it; would they stand such an outrageous situation'
I can assure you that the Persian Government and people have never had in
mind the thought of laying hands on the properties of the company They do not
disregard the pioneer work of the company m the exploitation of these natural
resources- but it is the express desire of the Persian Government that both
parties to the transaction should receive their due share of the profits. This has
been the principal motive for the action of the Persian Government in cancelling
the D'Arcv Concession. Persia wants to obtain her proper and legitimate share
of her natural resources. She seeks to acquire a share of the profits which would
be concomitant with her rights of ownership, and the troubles and the sacrifices,
she has to undergo for the sake of the security and the safety of the company..
With what has been said before about the obstacles in the way of Persia s economic
develooment it is needless to mention how essential a new and equitable basis
of agreement is to the economic interests of Persia The case is self-evident,
and speaks for itself; and I think that no man with a gram of justice in his
Tnfllrp-iiT) could deny this necessity. , ^ . .
We have now to consider very briefly the arguments which Persia advances
for the iustiflcation of her action in the annulment of the D Arcy Concession.
Tut hp first nlace the company has shown on many occasions its unwillingness to
abide 4 the terms of the original concession. Can it be maintained that this
[691 m—1] B 2