'File 39/2 (1 B/8) Effect of abrogation of APOC concession by Persian Government on oil market in Bahrain' [‎34v] (68/80)

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Article 16.
(I) Both parties recognise and accept as the principle governing the
performance of this Agreement the supreme necessity, in their mutual interest,
of maintaining the highest degree of efficiency and of economy in the administra
tion and the operations of the Company in Persia.
(II) It is, however, understood that the Company shall recruit its artisans
as well as its technical and commercial staff from among Persian nationals to the
extent that it shall find in Persia persons who possess the requisite competence
and experience. It is further understood that the unskilled staff shall be
composed exclusively of Persian nationals.
(III) The parties declare themselves in agreement to study and prepare a
general plan of yearly and progressive reduction of the non-Persian employees
with a view to replacing them in the shortest possible time and progressively by
Persian nationals.
(IV) The Company shall make a yearly grant of ten thousand pounds
sterling in order to give in Great Britain, to Persian nationals, the professional
education necessary for the oil industry.
The said grant shall be expended by a committee which shall be constituted as
provided in article 15.
Article 17.
The Company shall be responsible for organising and shall pay the cost of the
provision, control and upkeep of, sanitary and public health services, according
to the requirements of the most modern hygiene practised in Persia, on all the
lands of the Company and in all buildings and dwellings, destined by the Company
for the use of its employees, including the workmen employed within the territory
of the Concession.
Article 18 .
Whenever the Company shall make an issue of shares to the public, the
subscription lists shall be opened at Tehran at the same time as elsewhere.
Article 19.
The Company shall sell for internal consumption in Persia, including the
needs of the Government, motor spirit, kerosene and fuel oil, produced from
Persian petroleum, on the following basis : —
(a) On the 1st June in each year the Company shall ascertain the average
Roumanian f.o.b. prices for motor spirit, kerosene and fuel oil and the
average Gulf of Mexico f.o.b. prices for each of these products during
the preceding period of twelve months ending on the 30th April. The
lowest of these average prices shall be selected. Such prices shall be
the basic prices ” for a period of one year beginning on the 1 st June.
The basic prices ” shall be regarded as being the prices at the
refinery.
(b) The Company shall sell: ( 1 ) to the Government for its own needs, and
not for resale, motor spirit, kerosene and fuel oil at the basic prices
provided m sub-clause (a) above with a deduction of twenty-five per
cent. (25 per cent.); (2) to other consumers at the basic prices with a
deduction of ten per cent. (10 per cent.).
(c) The Company shall be entitled to add to the basic prices mentioned in
sub-clause (a), all actual costs of transport and of distribution and of
z . as wel1 as an y im P°sts and taxes on the said products.
(d) The Government shall forbid the export of the petroleum products sold
by the Company under the provisions of this article.
(I) (a) During the last ten years of the Concession or during the two veai
CotanvsLTnnt “f, ? f the Co “ on Provided * arffll
the Company shall not sell or otherwise alienate, except to subordinate comoanie
Sll no S r e nr b i e properties in Persia. During tie same period the Span
become rftCsabTe P ° rt ^ ° f ltS m ° Vable whateTOr ^h a