The New York herald., 1922-04-14


Copyright. f9ge by THE NEW YORK HERALD.
New York Herald Bureau,
Berlin. April I5.
The agreement of the Standard Oil
Company and the Anglo Persian Oil
Company for rights in the northern
Persian oil fields is more far reaching
than the Persian Government, the
Turks and the Soviet Government are
will TO tolerate, authoritative repre-
sentatives told THE New YORK HERALD
correspondent.
The details of the agreement were
given out by Hussein Kult Khan Ma
wab. Persian Minister in Berlin, the
man who as Persian Foreign Minister
invited Morgan Shuster to become
Persian Treasurer General. The agree
ment between the English and Ameri-
can groups was reached early in
March of this year on basis of equal
participation in financing and share
holding The combination, owing to
the fact that America has more ami
cable political relations in the Near
East had agreed to register as purely
American company, it is said.
Georgian 10 Get S1.75O,OOO.
The STANDARD oil Company had agreed
to make the Persian Government a pay
ment of $4,000 900, having already lent
Persia 81 100000 aside from the con-
cesson payments. To secure a clear
title the Standard Oil Company and
the Anglo-Persian Oil Company also had
agreed to pay a Georgian named Kho-
starts S1,75O,000 for rights he claimed,
the British and American groups each
paying half The Persian Government,
however never recognized the claim of
khostaris
The Standard Oil Company inserted
clause in the agreement with the Brit
ish combination that should the north
Persian fields prove insufficiently pro-
ductive at the end OF the first year. the
Standard could withdraw. but it was
arranged that the company should re-
main American although the capital
would then become entirely British.
1t Is presumed that several considera-
tions prompted the Standard Oil Com
pany to make this compromise with the
British interests. Since khostaris pre-
sented his demands with British support,
this participation facilitated buying his
alleged claims. Then the British group
opened the possibilit yfor participation
by the Standard oil Company in he
fields formerly monopolized by the Brit
sh in Palestine Mesapotamia. The
agreement provoked a political dead
lock among the governments concerned
and II was said that the United States
would insist on an open door policy in
Persia This would not interfere with
the present Anglo-American agreement
Cannot Transfer Rights.
But the Persian Minister in Berlin
states that the Persian Parliament
granted the north Persian concessions to
Americans on a clear understanding
that the concessionaire would not trans
fer any Of his rights to another party
without the consent Of the Persian Par
lament. The concession agreement
stipulated that n violation of this clause
would render the concession null and
void.
on this ground the Persians say they
are now entitled TO refuse TO recognize
this Anglo American agreement and the
privilege OF the English group eventually
to take over exclusive exploitation
should the Americans withdraw at the
The Soviet and Persian Governments,
the Persian Minister said. are hostile
to British penetration in this field. AL
though the Soviets have renounced all
the rights which Czarist Russia pos
sessed in Persia they have made a res
ervation that they must be- consulted
before CONCESSIONS are granted 10 non
Persians IN the territories formerly re-
served for Russians. They had already
admitted the American concession.
soviet and Turks Concerned.
The Persian Minister further ex-
pressed the fear that the Anglo-Amer'-
can agreement might complicate the re-
latfons between the Soviet Government
and Persia A high Turkish official
made a similar declaration TO THE NEW
YoRK HERALD correspondent recently
saying I'VE hope TO expel the British
from the oil fields along our border
while welcoming American enterprises
tlNre."
The validity Of the Anglo American
agreement in Northern Persia Is now
1 disputed The Persian Minister here Is
! not informed whether the United States
/ Government and the Standard Oil Com
( pany have as yet commented ON the
I protest Of the Persian Government.
/ THE NEW York HERALD correspondent
\ finds IN the Near East Government a
! general desire 10 attract American in
I itiative because OF the absence Of politi-
K cal strings.