The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-11

By United Press
TEHERAN, Persia, Feb. 1.-THE
attempt to learn, in concrete rather
than generalized terms, what the
Persian government demands from
the British oil concessionaireS
proves a battling undertaking.
Either the shah's government has
not made up its mind what it will
accept, or it is saving its fire for a
more appropriate time and place
officials of the Anglo-Persian Oil
Company have voiced the complaint,
according to Teheran diplomatic
circles, that they have been unable
to tie down the Persian authorities
to a specific list of demands.
1t even is reported that such a list
had been asked for and was about
to be presented by the minister of
finance, His Excellency Taquizade,
when the annulment interviewed.
The company, however, seems to
have been equally reluctant to dis
close exactly how far it is willing to
go to meet the demands.
Both sides appear to be leaving
themselves plenty of margin for real
bargaining.
Company Also Reluctant
To an outsider it seems strange
that the company has not made
public the texts, or at any rate the
substance, of two tentative agree
ments containing important conces-
sions to the Persians which the
shah's government is alleged to
have failed to accept.
The Persian government has
been accusing the company of
failure to meet changing condi-
tons.
If, as intimated, the two agree
ments did in a serious sense meet
the Persians' claims, their publ
cation completely would nullify the
accusation.
The shah's numerous complaints
summarize, in their simplest form,
to cry for more royalties and for
closer scrutiny of the business which
is to produce those royalties.
A Teheran journalist stated that
"a per cent of the net profts-a
so per cent increase, that is, over
the 16 per cent stipulated in the
original concession-would satisfy
his government.
Flat Payment Proposed
Other methods of calculating
Persia's due also have been Sug-
gested. One is fiat payment Of
so much per ton of oil produced,
as in the recent Irak agreement.
Another would provide fixed
annual payment regardless of pro-
duction. The sum mentioned, it is
reported, ran around 100000
pounds sterling.
Even more important than the
percentage to be paid, of course, is
the method of calculating the net
profits.
The Anglo-Persian in the years
since it's organization has become
powerful worldwide organization
with numerous subsidiaries.
1t is true that the Persian gov
eminent contributed none of the
capital on which this expansion
rests. 1t did contribute, as it in
sists, it's soil, its oil, it's most i'm
portanr form of capital in fact.
Persia's Part Is Puzzle
To what extent did Persia's con-
tribution, namely its oil resources
enter into making the worldwide
organization possible?
How much of the met profits" Of
the oil concession went to build ur
the profitable subsidiaries controlled
by Anglo-Persian?
To Wat extent, if any, shoulc
Persia participate in the winnings
of these subsidiaries?
Persia also contends that the
concession has netted Great Brit.
ain something more than profits
namely, a petroleum base for it,
middle and near eastern empire.
That is an intangible item in thu
/. company's accounting; but thu
oriental mind is sometimes NOR
proficient in calculating the intan
gibles than the solid statistics.