'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎12v] (24/80)

8
The Directors made these arrangements in face of
advice received from eminent lawyers in this country
that some of the claims of the Persian Government could
not be substantiated in law, but the Directors considered
it desirable to act in a liberal spirit in an endeavour to
foster amicable relations with the Persian Government.
From 1920 till about 1928 the arrangements provided
in the 1920 Agreement substantially served the purposes
for which they were designed, and the royalties payable
by the Company to the Persian Government in accordance
with the D’Arcy Concession, as interpreted by the 1920
Agreement, were checked each year on behalf of the
Persian Government by eminent chartered accountants
in this country. Some differences of interpretation
again arose, but most of them were from time to time
adjusted between the accountants of the two parties, and
the royalties were accepted by the Persian Government
without prejudice to those differences which had not
proved susceptible of adjustment by the accountants.
In the year 1928, further discussions took place at
the instance of a representative of the Persian Govern
ment with the object of effecting a revision of the D’Arcy
Concession. These discussions eventually culminated at
the beginning of the year 1929 in a visit to Tehran by
Sir John Cadman, the Chairman of the Company,
accompanied by other Directors and officials of the Com- 0
pany and by the Company’s legal and accountancy
advisers. The negotiations in Tehran extended over a
period of some two months.
Although agreement was reached on most of the points
which were under discussion between the Persian Govern
ment and the Company, there were certain points on