'Mosul Question, Lausanne 1922-1923 and after - Papers, despatches, speeches - Hotel de la Mer at Lausanne - Correspondence about oil' [‎216v] (430/501)

204
OIL ENGINEERING AND FINANCE
February 17, 1923.
authorise the addition of 4 per cent, to the already
existing 11 per cent. Turkish Customs duties. This
was a signal for the powers once more to gather round
the “ sick man.” They gave their assent in principle
to the proposal, but made its final ratification subject
to the Turkish Government settling a number of long-
outstanding questions of an economic and financial
character. Then began what may be termed the
1914 negotiations.
Turkish Petroleum Coy’s Claims.
In order to have a clear conception of the Turkish
Petroleum Company’s claims, we think it advisable to
explain what these negotiations really were. In
effect, these negotiations were to decide the Articles
of Convention between Turkey on the one side, and
the Powers on the other, whereby the Powers were
to grant Turkey permission to add 4 per cent, to her
Customs Tariff. Turkey, in return, was to grant to
the Powers, or their Nationals, a certain number of
material concessions. We do not know the precise
nature of the concessions that were to be given to
French, German, and Italian Nationals. No doubt
they dealt with harbours, railways and roads for the
most part. But the principal considerations demanded
by the British Government were in regard to the grant
ing of the oil concessions to the Turkish Petroleum
Company, the prolongation of the Smyrna Aidin Rail
way Charter, and certain concessions dealing with
boracite deposits. Wc are informed that some time
in June a point of agreement had been reached on all
questions at issue, and we are further informed that
the Grand Vizier confirmed the intention of the Minis
try of Finance to grant Mesopotamian oil concessions
to the Turkish Petroleum Company. We think it our
duty to point out that these arrangements were not
separate as between each individual Power and Tur
key, but that the concessions that Turkey agreed to
give were agreed to as a wdrole, as between all the
Powers on the one side and Turkey on the other. To
make this point still clearer, Turkey was giving so
much to Italy and so much to England in return for
the united consent of these Powers to the raising of
the Turks Customs duties. It was not the intention
of Turkey to give so much to England alone, and for
England alone to give her consent to the Turks’
demands.
These negotiations were interrupted by the out
break of the war and it is conceded that the agreement
reached between the parties concerned was never
drawn up in the form of a convention nor signed by
any of the Powers interested. We believe that Sir
Edward Grey informed the Turks at the outbreak of
the war that the negotiations with Turkey would have
to be resumed at a later date ; inferring that they were
not to be considered as final.
International Rivalry.
During the war the Young Turks gave a number
of oil concessions, including the Mesopotamian oil con
cessions, to* German interests, but these were annulled
by the Treaty of Versailles. After the Armistice the
first mention made of the Mesopotamian oilfields is
found in the negotiations between England and
France, and notably in the San Remo Agreement of
1920. This agreement dealt with British and French
partition of oil and pipeline rights in the Mandated
Territories of Mesopotamia and Syria, and although
the text does not actually refer to the Turkish Petro
leum Company, reference is made to it in subsequent
memoranda. It became clear at this moment that
the British Government claimed the Mesopotamian
oil concessions for the Turkish Petroleum Company.
This claim was strongly opposed by the United
States Government in a series of letters published
in the White Paper, to which we have already
several times referred. We understand that the
American attitude to this claim has not changed,
although subsequent diplomatic correspondence on
the subject has not been made available to the
public. Further opposition to this claim was made in
1921 by representatives of the Heirs of the late Sultan
Abdul Hamid, who claimed that they were legitimate
heirs to their father’s property and that their title
could not be legally questioned. Since 1921 the
chaotic political situation in the Near East has ren
dered any final solution as to the real ownership of
these concessions impossible.
The atmosphere for the last twelve months has
been full of intrigue and counter-intrigue by all parties
concerned, to strengthen their position in view of the
pacification and settlement, which we hope is near at
hand, of the Near East. Among other attempts to
complicate a situation, already sufficiently complicated,
is that of Mr. Chester to obtain railway and oil rights
in Mosul from the Angora Government. His scheme
is by no means new, as it was first proposed to the
Young Turks in 1911, or 1912, by Admiral Chester.
The Angora National Assembly have discussed Mr.
Chester’s proposals on several occasions, and in spite
of the manifestly advantageous financial considerations
offered, Mr. Chester’s proposals were finally rejected
about a month ago. We have not yet received a full
report of fhe reasons for this rejection, but we under
stand they had something to do with the rights
acquired by the late Sultan Abdul Hamid. The
American Government, in refusing to accept the claims
made by Lord Curzon, on behalf of the Turkish Petro
leum Company, have adopted a policy of the “ open
door ” in regard to economic rights in all Mandated
Territories. Their recent Note to Lord Curzon, in
Lausanne, again refutes the claims made on behalf of
the Turkish Petroleum Company, and brings to his
lordship’s notice the fact that other claims exist.
American Attitude.
The essence of the information we have received
from various sources is that the American Government
is not disposed to accept a political or diplomatic
settlement of the Mesopotamian oil question. While
admitting that pre-war rights should be ratified and
confirmed, they state that the Turkish Petroleum Com
pany had acquired no rights and that, failing the