File 1421/1908 Pt 3 'Persia: oil; negotiations between the Shaikh of Mohammerah and the Anglo-Persian Oil Co.' [‎372r] (309/338)

Consul-General Cox to Sir Edward Grey. —(Received Ju
^ YOTTR ^ j • Bushire, June 9, 1909, 3*55 p.m.
t ii te 1 le ^ iam repeating telegram from Foreign Office.
. 1 delayed answer on chance of seeing Reynolds as he passed through but
intimation of his coming reached me too late g ’
As regards loan: In pursuance of original instructions, I informed Sheikh that
Government were prepared to lend him 5,000 or 0 , 000 , but he replied that would not
suffice, and begged that amount might be increased to 10 , 000 .
i i f i n ^ t i tllmk . tliat \ the same off er repeated will be more acceptable for being
uacketed with question of payment of rent by Company. In fact, having told Sheikh
that I \\ ould forward request for 10,000, I can hardly repeat offer of 6,000. Further
piesent mail has brought me a letter from him begging that question of loan may be
settled urgently. I recommend, therefore, that grant of 10,000 be reconsidered. ‘
s regards Sheikhs first stipulation: Definite pronouncement by company at
ns stage that buildings will lapse to central Government will certainly upset Sheikh
and also tribal headmen if they hear of it. In view of their firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). , could not Sheikh
and tribesmen be regarded as “ proprietors ” for purposes of article 3 of concession?
ai mg that, I suggest that I should inform Sheikh after verification, as far as possible
* ^ i • concession is prior to date of his firman A Persian word meaning a royal order or decree issued by a sovereign, used notably in the Ottoman Empire (sometimes written ‘phirmaund’). (which we have not yet seen)
and advise him not to raise issue now, but to accept undertaking of company to leave
Duildmgs where they stood, and settle matter with Persian Government when the time
comes. Similar argument will presumably apply to fourth stipulation.
Sheikh, however, is sure to ask what is attitude of Government towards this issue,
and I therefore beg to be apprised of their views as well as those of Company.
As regards list of requirements in Reynolds’ draft agreement:—
Paragraph 2 . Abadan Island proves to be practically 2 miles broad at point
selected, not 1 mile as understood by Company.
Paragraph 4. Sheikh cannot be expected to include grant of building sites on
bank of Karun either at Ahwaz or Mohammerah within price agreed upon for pipe line
and plot on Abadan, and it does not appear from Reynolds’ telegram of the 22nd April
to his principals that he contemplated this.
As regards other details of requirements, it appeared to me that it was of no use my
discussing them until broad preliminaries had been arranged, but apart from items
above mentioned there appears to be nothing which Sheikh is likely to take exception
to ; My idea was that local agent of Company would work out and settle these details
with Sheikh after fundamental conditions under correspondence had been settled.
(Addressed Tehran ; repeated to Foreign Office.)