Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-24
BIG OIL DEPOSITS
FIGURE IN FARLEY
British Interests Try to OBJ
tain Concessions in Large
Irak Field.
BY CARROLL BrNpER.

Special Dispatch to The star.
LONDON, England, July 24.-Oii In
terests throughout the world, but par
ticularly United States companies, are
watching arxiously the discussions be-
tween King Feisal of 1rak and the Brit
ish government which commenced yes
terday.
ostensibly the negotiations concern
the admission of Irak into the League
OF Nations as sovereign state and It's
new relationship to Great Britain, which
now holds the mandate for Irak FROM
the League. Actually they involve the
fate of the great Mosul oil deposits.
which are one of the prizes In the world
struggle for oil.
1t is not impossible that when frak
blossoms forth as full-fledged nation
the Standard Oil Co of New Jersey NAV
find itself deprived of its precious rights
to Mosul oil. The Americans, of course.
are looking out for their interests. and
are hopeful of conserving under an in.
dependent Irak the rights obtained DUR
ing the British mandate.
Principle Involved.
Nuri Pasha premier of Irak. admitted
TO me today that he intends to endeavcr
to establish the principle that ali intaf-
national treaties or agreements con-
tracted under the mandate must r.
submitted for ratification to the IYnk.
Farnament before they shallebe binding
upon the new nation. That would ne
clude such concessions as that, of the
lrak Petroleum Co., In which the Anglo
Persian, the Royal Dutch SheII. !
French oil company and an American
| group headed by the Standard on of
| New Jersey each holds one-quarter Of
| the shares.
So long as Irak was British man.
GATE the Americans and French man
aged to participate in the ownership Of
cnIs rlcn neld, but after Irak's sover-s
elgnty Is recognized by the British ana
the League that method of assuring
participation Is no longer efficacious.
Enterprise Favored.
OF course, the Americans may pre-s
van upon the British to exercise their
good offices with the Iraki to assure
continued American participation, but
| again they may not. That Is WHY the
discussions here this week are of more.
than ordinary Importance.
Inc Irak government needs money
badly. Taxation is difficult, and, there
fore. exploitation of oil is the most
convenient form of raising money. But
neither the Americans nor the Anglo
Dutch interests are DESTROYS of exploit
| ing the Mosul region now, as other
A
dispose of. Irak Is regarded as the
reserve for the future.
But the Irak government Is finding
| friends outside this syndicate A sroun
| OF prominent Britishers, headed bv 4
retired admiral OF the feet. wester
Wemyss, co-opetating with the Italian
| governmental company known as the
Agip, and well financed German. Swiss
and French groups, seeks concession
similar TO that now held by the Irsx
Petroleum Co.
The British admiralty il understcss
/ to be well disposed toward this nSS
| enterprise and the Irak government
receptive because it promises immediate
cash. Competition viii at least srirrg,-
late the older group. to which the
/ Americans belong. to some activity IN
Irak, in the opinion of observers here
They may find themselves frozen out
ana the British government regrettinz
that 1t cannot safeguard their Interests
as it did during the mandate.
| But despite independence, Trak re-
mains under the British wing. The
Haifa- Bagdad Railway, which. when
completed. viii afford an invaluable
route to India quicker than that VIA
Suez and alternative to the canal. Is
being commenced That VIII traverse
Irak, and great Britain must feel
tranquil about that country.
The Persian Gulf IS almost exrlu-
siyely British controlled sea nowa-
days. That is why the new treaty or
alliance between Great Britain and
Irak provides for intimate British SUI
pervision OF Irak's foreign and military
affairs and for the use Of Britishers
whenever foreign military or civii adj
visers are needed. 81
tConyrieht. 1901