890g.6363 T 84/62
The President of the Standard Oil Company of New
Jersey (W. C.
Teagle) to the Secretary of State
New
York, December 13,
1922.
[Received December
14.]
My Dear Mr. Secretary: We are in receipt today
of a cablegram dated December 12th, from Mr. Montagu Piesse, our London
representative, of which we beg to enclose herewith a copy.
This cablegram is self-explanatory, but we might mention that Gulbenkian
is an Armenian, resident of Paris, who, we understand, was entitled to a
5% participation in the Turkish Petroleum Company under an agreement
made between the Anglo-Persian Oil Company, Ltd. and the Anglo-Saxon
Petroleum Company, and we also understand that he has some association
with the Royal Dutch interests.
We have not yet presented this proposal to the American Group, preferring
rather to first get the State Department’s views. I am planning to be in
Washington tomorrow and shall take the opportunity to see you and, if
possible, obtain your views upon the points in the proposal which
particularly concern the State Department.
In order to clarify our understanding of this proposal, we are
telegraphing Mr. Piesse as follows:
“Referring your telegram December 12th, we assume that proviso
which reads ‘that State Department undertake not to question
title of Turkish Petroleum Company’ does not include the
condition already imposed on American Group by State Department
that Turkish Petroleum Company shall obtain ratification of its
titles from Iraq or other Government concerned. Please confer
with Anglo-Persian Oil Company Ltd. and telegraph me fully.”
Very truly yours,
[Page 348]
[Enclosure—Telegram]
The London Representative of the Standard Oil
Company of New Jersey (Montagu Piesse) to the President of the Company (W. C. Teagle)
London, December 12,
1922.
Harrison reports following agreement has been reached today between
the Anglo Persian Oil Co. Ltd., and Anglo Saxon subject to agreement
by other parties interested that participation of Turks (Turkish?)
Petroleum Company in the future shall be altered as follows Anglo
Saxon 24% French 24% American 24% Anglo Persian Oil Co. Ltd. 24%
Gulbenkian 4% last non-voting; that the Anglo Persian Oil Co. Ltd.
in consideration of the reduction of its present holdings to 24% be
given agreement by the Turks (Turkish?) Petroleum Company whereby
Anglo Persian Oil Co. Ltd. to receive free of cost 10% of the crude
oil produced from the concessions and deliverable to the Anglo
Persian Oil Co. Ltd. free of charge into the main pipe-line at the
field. Anglo Persian Oil Co. Ltd. to have the right have this oil
transported through the pipeline at cost price taking into account
reasonable amortization also interest 6% per annum on the pipe lines
net capital account from year to year. Your agreement to above can
only be accepted subject to proviso that State Department will
acknowledge above satisfying American claims to participation in oil
resources of Iraq and that State Department undertake not to
question title of Turks (Turkish?) Petroleum Company also that they
advise promptly their representative at Lausanne of agreement
reached. Harrison says above agreed with Anglo Saxon with utmost
difficulty and trust to receive your prompt acceptance. He does not
anticipate difficulty in getting acceptance of French and
Gulbenkian. He asks that you get State Department through Lausanne
to support strongly this arrangement to the exclusion of any other
interests American or otherwise.
