Papers of the Interdepartmental Conference on Middle Eastern Affairs [‎62v] (124/290)

The capital of the Company shall be divided as follows:—
British interest ... ... ... ... ... ^0 per cent.
French interest ... ... ... ... ... 20 „
Native Government interest ... ... ... 10 „
If the Native Government do not desire to participate to the extent of 10 per
cent, the balance shall be divided equally between the British and French holdings.
It is understood that one of the terms to be embodied in the lease to be granted
to the Company to work the oilfields will provide that local native interests may
participate, if they so desire, up to 10 per cent, in the share capital of any subsidiary
company which may be formed to work any of the oilfields, or, in the event of sub
sidiary companies not being formed, up to 10 per cent, of the share capital of the
original company will be specially provided for this -purpose in addition to the
amount allocated to native government interests. This additional participation
shall be provided by each group in proportion to their holding.
In consideration for said participation the French Government shall agree to
facilitate by every means in its power, as soon as application is made, the construc
tion of two separate pipe-lines for the transport of oil from Mesopotamia and Persia
to a port or ports on the Eastern Mediterranean. The port or ports shall be chosen
in agreement between the two Governments.
Should the pipe-lines cross territory in which France has received a mandate,
France undertakes to use her good offices to secure every facility tor the rights of
crossing without any royalty or wayleaves on the oil transported. Nevertheless,
compensation shall be payable to the land-owners for the surface occupied.
In the same way France will give facilities at the terminal port or ports for the
acquisition bv the Mesopotamian Company and the Anglo-Persian Oil C ompany of
the land necessary for the erection of depots, refineries, loading wharves, &c. Oil
thus exported shall be exempt from export and transit dues. The material necessary
for the construction of the pipe-lines, refineries, and other equipment shall also be
free from import duties.
This agreement in so far as it relates to pipe-lines, storage refineries, depots,
loading wharves, &c., is entered into solely to facilitate the supply of petroleum and
is in no way to be taken as implying that any territorial rights are in existence.
Should the Mesopotamian Company desire to lay a pipe-line to the Persian
Gulf the British Government wall use its good offices to secure similar facilities for
that purpose.
North Africa and other Colonies and Protectorates.
The French Government will give facilities to any Franco-British group or
groups of good standing, which furnish the necessary guarantees and comply with
French laws, for the acquisition of oil concessions in the French Colonies, Protec
torates and zones of influence, including Algeria, Tunis and Morocco. It should be
noted that the French Parliament has resolved that groups so formed must contain
at least 67 per cent. French interests.
The French Government will not fail to grant to Messrs. Pearson and Son a
concession in Algeria as soon as thev have proved the existence of oil in commercial
quantities and have complied with all the requirements of the French laws.
British Crown Colonies.
In so far as existing regulations allow the British Government will give to
French subjects who may wish to prospect and exploit petroliferous lands in the
Crown Colonies, similar advantages to those which France is granting to British
subjects in the French Colonies.
This note supersedes and is in the place of the Memorandum of Agreement
dated 6 th March, 1919.
This Agreement has to-day been initialled by the Right Honourable Walter .
Lono\ M.P.Tand Senator Henry Berenger, subject to confirmation by the British
and 0 French Foreign Ministers respectively.
Paris, A'pril 8 , 1919.