File 537/1921 Part 2 'Persia: Oil - A.P.O. Co's development of new oil-fields; Oil Boring at Dasht-i-Qil; A.P.O. Co's agreement with Kashkuli Khans' [‎282v] (236/254)

Enclosure 7.
Dated Bushire, the 8th October 1921.
jr rom Sie A. T. Wit son, Resident Director, Messrs. Strick Scott and Company,
Limited, Managing Agents, Arglo-Persian Oil Company, Limited,
rp 0 The Hon'ble the Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
I have the honour to enclose for your information an original copy of the
agreement concluded on October 6th between the undersigned on behalf of the
A°nglo-Persian Oil Company, Limited, and Sarkar Haidar Khan, C.I.E., with
regard to im pending operations at L>asht-i-Qil, together with a rough transla
tion. A revised and certified translation will be forwarded to you in due
course.
2. I take this opportunity of thanking you for making available the
services of Air. S. Clegg and Agha Khalil their presence greatly facilitated
the conclusion of the agreement.
3. For your information I beg to place on record the following observa
tions :—
Paragraph 1 .—The reference to Mohammad Khan was inserted at Haidar
Khan’s own request. Mohammad Khan himself was not present but the
document was both signed and sealed by Haidar Khan on his behalf.
4. Paragraph 3. —It will be understood that the Company under this
agreement is not liable to pay rent of any sort to Haidar Khan until oil is
•actually found in paying quantities and exported. The prices agreed on as
rent and purchase price respectively are exceedingly liberal and could not be
justified but for the fact that it is improbable that any considerable area will
he required in Hayat Daud. The price quoted are practically identical with
that paid to the Shaikh of Mohammerah as rent under the agreement of 16th
July 1909.
5. The purchase price is based on ten years’ rental. In view of the
liberal price to be paid to the Zabit for waste land under this agreement and ol
the considerable revenue that should accrue indirectly to him from the opera
tions of the Company he can neither now nor in the future have any claim to
shares in the Company unless the policy of the Company in this matter should
undergo radical alterations.
b. ine reference to the Fersian Government in paragraph 3 was a source o
some anxiety to. Haidar Khan but he finally consented to allow the clause 1
stand. His attitude was that he had never seen anything but evil from tb
ersian Government and he objected to any provision which might give then
possible ground for interference in the territories under his control.
.J; ex P ressed ? rav e doubt as to his ability t<
render efficient protection to the Company in the case of concerted attacks or
verbahv^hLY 10 , A 1 hrnad . 1 0 , r g 6 . ^araskuri tribes. I informed bin
verbally that he would not be strictly held to account in the event of /ora
relfbut “aided lS'“ looked“o'htatoTerent' 8 l ' e f 0 ° aW ' s powet “
for thepasl 20 ““ Jis ‘ riot “ ^o-oWo
8. Paragraph 8.—Pay of guards was discussed at some length. The
employ edas a^iTdVa ™twer“‘,rtb?ptaih Kh aSd P a H°e MfedV 17 ““
:&“?o ertiS “ tbe s
-t June. The
Company a on r the^rounf im P orta “ ce g the provision of arms by the
for the ^ ^ iDeffeCt -
bis son, Allah KaranTKlia^iifthp 6 w g come d by me, to employ
, naram Khan in the combined capacity of Head of Guards and