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File 3877/1912 Pt 1 ‘Turkey in Asia: oil concessions’ [‎176r] (360/834)

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The record is made up of 1 volume (412 folios). It was created in 17 Jul 1904-4 Sep 1913. It was written in English and French. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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[This Document is the Property of His Britannic
Majesty’s Government,]
ASIATIC TURKEY AND ARABIA.
^ CONFIDENTIAL.
[April 5.]
Section 1,
[15581] No. 1.
Sir G. Lowther to Sir Edward Grey.—(Received April 5.)
(No. 257.)
Sir, Constantinople, March 31, 1913.
I HAD another opportunity of speaking to the Grand Vizier yesterday on the
subject of the claim of the Anglo-Persian Oil Syndicate, represented here now by
Mr. Stock, and I explained to his Highness that we could not share bis view as to the
advisability of an amalgamation which he had suggested in a recent conversation, as
reported in my despatch No. 239 of the 24th instant, but that His Majesty’s Government
must insist upon the carrying out of the promises made by Hussein Hilmi Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. ,
supported, as we believed them to be, by a decision of the Council of Ministers.
His Highness, in reply, said that all the researches that had been made had
failed to reveal any decision of a Council of Ministers in favour of the English company,
and that, if Hilmi Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. had made any such reference, it could only have been to a
discussion in the Council of Ministers and not to a decision of that body.
I said that it seemed to me obvious that Hilmi Pasha An Ottoman title used after the names of certain provincial governors, high-ranking officials and military commanders. would nob have continued to
negotiate with the English company if the German company still had rights in the
matter, to which his Highness replied that a contract existed between the German
company, subsequent to the transfer of the Civil List, and the Ministry of Finance, and
that, if this were not carried out, the German company would undoubtedly bring an
action against the Government, which, in his opinion, they would win.
The document to which the Grand Vizier referred is presumably the protest made
by the German company against the cancellation of their previous rights. In any case,
Mr. Whittall declares that there was no contract beyond the Zander agreement and the
above-mentioned protest.
There was likelihood, the Grand Vizier said, that if we did not agree to an
amalgamation the matter would drag on and neither side might obtain the concession.
But, his Highness added, the Turkish Government now appreciated that they
might derive very considerable revenues from the exploitation of these petroleum fields,
and for this reason he was anxious to see a settlement on the lines he had suggested,
namely, amalgamation.
I enclose herewith a copy of a letter received from Mr. Stock, reporting a conver
sation with the Minister of Mines. It will be observed that the Minister took up a
different attitude from that adopted by the Grand Vizier, and implied that the deposits
would be given to the highest bidder.
The statement of the Minister regarding the action of the Council of Ministers in
1909 is probably a correct one, namely, that no definite decision was taken in favour of
Mr. Nichols, but that his proposals were to be favourably considered if no competitor
offered better conditions.
I have, &c.
GERARD LOWTHER.
Enclosure 1 in No. 1.
Mr. Stock to Sir G. Lowther.
Your Excellency Constantinople, JMarch 31, 1913.
I HAVE the honour to submit, enclosed herewith, the report of the interview
I had of the Minister of Mines on the 29th.
Your Excellency will find it as unsatisfactory as all the interviews have hitherto
been. I have been unable to obtain a copy of the 1909 decision of the Council of
Ministers to test his statement in regard thereto, and until I can get this it will ^ be
difficult to deal with the Minister, though from his tone it is clear that he is not acting
on his own initiative, but is simply serving as the Grand Vizier s mouthpiece.
I have, &c.
~ H. W. STOCK.
[2884 e —1
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| 2 MAY 1913
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Content

The volume comprises copies of correspondence, memoranda and other papers, produced in response to the prospect of an oil company backed by German capital taking control of future oil concessions in Mesopotamia [Iraq], and the implications that such concessions might have on the Anglo-Persian Oil Company’s (APOC) own oil concession in neighbouring Persia. The prospect of foreign capital exploiting Mesopotamia’s oil resources was a particular cause for concern amongst senior officials in the Admiralty, who were dependent on APOC’s oil production for their fuel supplies, and the Foreign Office. The more peripheral interest of such a concession in Mesopotamia to the Government of India and the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. is reflected in the volume’s papers.

The volume’s principal correspondents are: the Secretary to the Admiralty (Sir William Graham Greene); Secretary at the Foreign Office (Sir Louis du Pan Mallet); Secretary of the Political Department at the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. (Sir Arthur Hirtzel); Permanent Under-Secretary of State at the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. (Sir Thomas William Holderness); the Managing Director of APOC (Charles Greenway).

Subjects covered include:

  • correspondence dated late 1912, chiefly between representatives of the Admiralty and Foreign Office, airing concerns over the implications of exploratory oil concessions agreed for Mesopotamia between a consortium including the National Bank of Turkey, Shell (referred to in the volume as either the Shell Transport Company or the Anglo-Saxon Petroleum Company) and Deutsche Bank, to APOC oil exploration in Persia;
  • discussion of the Government of India’s interest in maintaining an independent APOC, and whether the Government of India should not invest in APOC, including a proposal that it purchase oil from APOC for use on the Indian railways, or contribute to the purchase of fuel supplies on behalf of the Royal Navy;
  • through February 1913 to April 1913, diplomatic negotiations (including some correspondence in French) seeking to secure concessionary agreement for oil exploration in the Mesopotamian vilayets of Mosul and Baghdad for APOC (based on earlier arrangements made between the Ottoman Government and William Knox D’Arcy on APOC’s behalf) against the competing claims of the National Bank of Turkey consortium, and oil exploration rights outlined in the railway concession held by the Société du Chemin de Fer ottoman d’Anatolie (Anatolian Railway Company);
  • between May 1913 and July 1913, with the likelihood of APOC not being given exclusive oil concessionary rights to Mesopotamia, negotiations to secure ‘absorption’ (with a British-controlling interest) of APOC with the National Bank of Turkey or its partners, Shell and Deutsche Bank.

The core correspondence in the volume dates between September 1912 and September 1913. The earlier date indicated in the volume’s date range refers to a copy of a contract between Turkish Government’s Ministry of the Civil List and the Société du Chemin de Fer ottoman d’Anatolie, dated 17 July 1904 (ff 147-148).

The volume includes a divider which gives the subject (Turkey in Asia: oil concessions) and part number (1), the year the subject file was opened (1912), and a list of correspondence references contained in that part by year. This is placed at the back of the correspondence (f 1).

Extent and format
1 volume (412 folios)
Arrangement

The papers are arranged in approximate chronological order from the rear to the front of the volume.

The subject 3877 (Turkey in Asia: oil concessions) consists of 3 volumes, IOR/L/PS/10/300-302. The volumes are divided into 5 parts, with parts 1 and 2 comprising one volume each, and parts 3, 4 and 5 comprising a third volume.

Physical characteristics

The foliation sequence commences with 1 and terminates with 411. The front and back covers, along with the leading and ending flyleaves have not been foliated.

Written in
English and French in Latin script
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File 3877/1912 Pt 1 ‘Turkey in Asia: oil concessions’ [‎176r] (360/834), British Library: India Office Records and Private Papers, IOR/L/PS/10/300, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100028928517.0x0000a1> [accessed 6 March 2025]

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