891.6363 Standard Oil/19

The Consul General at London ( Skinner ) to the Acting Secretary of State

No. 10735

Sir: I have the honor to state that on the above date I cabled the Department reporting that the North Persia Oils Limited had taken over Russian oil interests in Northern Persia. The Department will recall that the Anglo-Persian Oil Company Limited already possesses exclusive rights in Persia except as to the five Northern provinces. Apparently these five Northern provinces, to a considerable extent, have been brought within the orbit of Anglo-Persian operations, that is to say, British Government operations, by the purchase just mentioned.

The North Persia Oils Limited was incorporated on May 8, 1920, with an authorised capital of £3,000,000. At a meeting of the Directors, held on November 30th, the following statement was made:—

“The total number of Ordinary Shares allotted is 3,000,000, of these 1,500,000 Shares were allotted for cash, and the amount paid up on 1,499,993 was 2s. per Share and on 7 Shares 20s. per Share, and 1,500,000 have been allotted as fully paid in part payment of the consideration payable under the Agreement for Sale dated 25th March, 1920.

[Page 642]

“The total amount of cash received by this Company in respect of the above-mentioned Shares allotted is £150,006 6s.

“The following is an Abstract of the Receipts and Payments referred to above:—

Receipts £ s. d.
2s. per Share paid on Allotment of 1,499,993 Ordinary Shares of £1 each 149,999 6 0
20s. per Share paid on Subscribers’ Shares. 7 0 0
150,006 6 0
Payments £ s. d.
Part Purchase Price of Concession 100,000 0 0
Preliminary Expenses 30,259 5 6
Duty on Contract of Sale 9,500 10 0
General Expenditure 1,069 13 5
Balance, represented by—
(1) Cash on Deposit with Anglo-Persian Oil Co. Ltd £9,000 0 0
(2) Cash in Bank 176 17 1
9,176 17 1
£150,006 6 0

“The preliminary expenses incidental to the formation of the Company are estimated to amount to £30,300.”

The Directors of the Company are Sir Charles Greenway, who is also Chairman of the Anglo-Persian Oil Co., Ltd., John B. Lloyd, and Duncan Garrow, who are also Directors of the Anglo-Persian Oil Co., Robert I. Watson, of the Burmah Oil Co. Ltd., and C. I. Djakelly and A. M. Khoshtaria, apparently Russians or Persians.

The vendors of the rights in Persia seem to have been given one-half of the shares in the new company and the other half have been taken over principally by the Anglo-Persian Oil Company, in which true control is vested.

In view of the troubled political conditions in Persia the Northern part of which particularly is said to be overrun by the Bolsheviks, it will be very interesting to observe the course of events as to this company, and particularly to learn whether Persia is as much disturbed as seems to be the case.

In the meantime the press reports that no action has been possible, thus far, in Persia, in the direction of ratifying the Anglo-Persian Agreement.

In this connection I call the Department’s attention to my 9582 of May 14th last,13 wherein I announced the formation of the North Persia Oils Limited, giving such details as were available.

I have [etc.]

Robert P. Skinner
  1. Not printed.