'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎6r] (11/80)

EXTRACTS
29th Novr. 1932
Tehran. Persian Govt, officially notified Anglo-Persian
uix ro* of annulment of Darcy concession but were willing
to consider fresh terms. Concession was granted for 60
years in 1901.
Action of Persian Government in cancelling Anglo-Persian
Oil Company’s concession on November twentyseventh was subiect
of several questions in Parliament. Undersecretary for Foreign
Affairs Anthony Eden replying said British Government was
fully aware of all circumstances including fact that
concession was definitely granted for period of sixty years
from 1901 and contains no provision for cancellation. On
December second British Minister Tehran under instructions
made strongest representations to Persian Government emphasising
very serious view held by British Government and adding that
while they still hoped matter might be amicably settled
British Government would not hesitate in case of need to
take all legitimate measures to protect their just and
indisputable interests. Persian Government were at same
time informed that British Government will not tolerate any
damage to Company’s interests or interference with their
premises or business activities in Persia.
British Govt, have now received Persian reply to recent note
protesting against cancellation of Anglo-Persian Oil Concession.
Commenting on action of Persian Govt, in annulling Darcy
concession of ^nglo-Persian Oil Company which is not subject
of diplomatic exchanges between London and Tehran Times says
In law and in equity Company’s case is unassailable. Only
power of cancellation contained in Darcy concession expired
nearly thirty years ago. Moreover concession provides for
settlement by arbitration of disputes which have not proved
amenable to negotiation and Persian Government has conse
quently broken agreement both by cancelling concession and
by failing to have recourse to arbitration. Its plea that
it was not constitutionally bound by original concession is
invalidated by fact that concession was recognised and
Royalty accepted by succession of Govts, both before and
after establishment of constitutional regime. In equity Company
can claim its activities been of enormous benefit to Persia
where it has spent millions in wages and purchases that it
has done its utmost to preserve just balance between claims
of its stockholders and those of Shah’s Govt, and finally
that Persian Gosrt. shared none of risks involved in explora
tion of their oil resources furnished no part of capital
required for their exploitation and owe their development
and consequent enrichment of Persia to Company's efforts”.
Meanwhile Company has refused recognise cancellation of
concession Persian authorities have formally adhered to it
in second note and dispute is now enfiraerinf? serious attention
of British Gover
Important statenn
Foreign Affairs ,
tations to Persi:
6th Deer. 1932
7th Deer. 1932
8th Deer., I932