File 3877/1912 Pt 3 ‘Turkey in Asia: oil concessions’ [‎299r] (365/372)

[This Document is the Property of His Britannic Majesty’s Government, j
TURKEY.
CONFIDENTIAL.
[March 18.]
Section 1 ,
[11963]
No. 1.
Memorandum by Mr. Ashley.—(Received at Foreign Office, March 18.)
Mesopotamian Oil.
IN accordance with Sir Hubert Llewellyn Smith’s instruction, I have this morning
had an interview with Dr. Bergmann, representing the Deutsche Bank. He was
accompanied by Herr von Kuhlmann.
Dr. Bergmann was acquainted with the outline of Sir Henry Babington-bmitn s
latest proposal. He said that, whilst the Deutsche Bank would naturally prefer a deal
with the British group, whereby each would have a 50 per cent, interest, they felt that
it would be difficult for them to take such a course. In the first place, they are under
certain definite obligations in connection with the lurkish Petroleum Company, and
independent action by them might, and very probably would, give rise to litigation,
which they were anxious to avoid. In the second place, there are business relations
between the Deutsche Bank and the Anglo-Saxon Company m other fields, and the
Deutsche Bank for that reason desire that the settlement reached should be as amicable
as P 0 |® i 1 ^ eutsche Bank therefore do not object to a settlement on the basis now
suggested by Sir Henry Babington-Smith, and Dr. Bergmann is of opinion that it offers
a solution which should be satisfactory to the d’Arcy group. I said that I was not n
a position to say what the decision of the d’Arcy group would be. but speaking only
for myself, it seemed that there was a fair prospect of a settlement. R was suggested
that ?f the d’Arcy group were favourably inclined to Sir Henry Babington-Smith s
proposal, a metdng'of I the parties might be held, say, tc.mor^^at whicha record
wouU give^th™ EHtSi^and 6 German "Governments an adequate basis for action at
Oonsta^ino^e,^and^the;for^l^d^etads^imile^t^e^su^seque^ ^
eariy next week. Deutsche Bank and the apparently genuine nature
of
should be made to induce the d . ‘ C .Y 0 P ^ reasonably expect—
them all that they really want, or at least as muen as y
50 per cent, of the control. • f 11 t i. B D .,rties proposed above
I suggest that if they do acquiesce "‘'“^/officefand that ft should be
should be held at the Boaid of 1 c meet i n o- would be to record a decision and
clearly understood that the purpose ot the meeting wouiu
not to discuss any principles. p. a.
March IT, 1914-
[2067 s—1]