891.6363 Standard Oil/45
The Chargé in Persia (Engert) to the
Secretary of State
Teheran, November 23,
1921.
[Received February 14, 1922.]
No. 763
Sir: Referring to the Legation’s telegram No.
71 of November 22nd, 10 [9] p.m., I have the
honor to transmit herewith translation of the proceedings in the Persian
Medjlis at its session yesterday afternoon,24 when the Prime Minister rushed
through the bill granting to the Standard Oil Company a concession for
fifty years for the exploitation of mineral oil in the provinces of
Azerbaijan, Guilan, Asterabad, Mazanderan, and Khorassan in North
Persia.
A translation of the Bill itself, based upon the Persian text furnished
to the Legation by the Secretariat of the Parliament is also enclosed
herewith. It appears that Article 3 as at first submitted by the Prime
Minister mentioned the Persian Government’s share as a “minimum of ten
per cent” of the gross receipts of the company. But when it was found
that there was some doubt in the minds of some of the members of
Parliament as to the sufficiency of this percentage, the wording was
changed [to] “over ten per cent”, the intention being to raise the
minimum share accruing to the Government to a figure higher than ten per
cent, and which is to be determined later.
I have [etc.]
[Page 649]
[Enclosure—Translation]
Bill Passed by the Persian Mejliss, November 22,
1921, Granting Concession to the Standard Oil
Company
- 1.
- —The Persian National Assembly approves of granting to the
Standard Oil Company, an American concern, a concession for the
exploitation of petroleum in the provinces of Azerbaijan,
Guilan, Astrabad, Mazanderan, and Khorassan under the following
terms:
- 2.
- —The duration of this concession to be fifty years.
- 3.
- —The Persian Government shall be entitled to over ten per cent
of all petroleum and petroleum products obtained from the wells,
before any expenses are deducted.
- 4.
- —Other terms of the concession, such as the cession of the
Government’s portion—in case the Government deems that proper—,
the manner of ascertaining by the Government of the earnings of
the company, and the conditions under which this concession may
be annulled, and other terms, shall be prepared by the
Government and after agreement with the above Company shall be
submitted to the Medjlis for approval.
- 5.
- —The Standard Oil Company shall have no right whatsoever to
transfer this concession to any government or company or person.
Also any participation of other capital must have the consent of
the Persian National Assembly.
