Evening star., 1949-08-21
Britain Having
Oil Difficulty
Middle East n ations
Want Bigger Share
of the Profits
By Fred J. Zusy

TEHRAN, Iran.-British Oil in
terests are running into difficulties
in the Middle East.
The trouble is chiefly in Iran
and Iraq-lands where British in
fluence traditionally has been
strong in the past.
The difficulties are due-some
observers say-to the diminished
role of Britain in world affairs
since the war. British influence
has waned and as result, these
sohservers explain, she is at dis
advantage in driving bargain. A
rising Nationalist feeling in these
countries also is demanding to be
heard. a~ &A
This development showed up in
the Iranian Parliament late last
month.
Anglo-Iranian Oil Co., Ltd.
in which the British government
owns $50 per cent of the stock.
has been operating in Iran since
1901. This company pioneered
development of the Middle East
oil felds-the greatest known re-
serves in the world today.
The original operating agree
ment was brought up to date in
1888 and extended to 1898.
Want More Money
Then in 1947 Parliament passed
law providing that Iran should
press for its full rights" in mat
ters like oil concessions.
Finally, after long talks. Iranian
officials and Anglo-Iranian Oil Co.
people worked out tentative new
agreement this summer giving Iran
far bigger share of Anglo-Iran-
ian profits than 1t received in the
past.
The agreement was to be retro
active to 1948. The new arrange
ments, it is estimated, would have
doubled Trans oil income for that
year-from the approximate $685.
100000 sterling it received to
SIG, 100000.
Trans Parliament, after a
lengthy debate, failed to vote on
the agreement. A filibuster led
by a small minority as the two
year legal life of the Parliament
drew to a close blocked a vote.
This minority asserted that the
new agreement wasn't good
enough-that Iran should get even
more money out of its oil. They
talked of a $3.50 arrangement.
and referred to payments by
American oil interests operating
in Venezuela as q precedent for
such a demand. ...
Another British firm. the Iraq
Petroleum Co., is running into
troubles in Iraq.
The Iraq government, like Trans.
is asking more money for the oil
the Iraq Petroleum Co. is taking
from under Iraqi soil.
Iraqi officials, in pressing their
demand for bigger royalties. have.
it is understood, pointed to higher
royalties paid by the Arabian
American Oil Co. (ARAMCO), a
wholly American-owned firm, in
Saudi Arabia. Negotiations in
Baghdad and London thus far
have been inconclusive.
Important to Britain
Iraq, too, has turned a deaf ear
to British requests that it permit
resumption Of oil pumping from
the wells at Kirkuk to the British
owned refinery at Haifa, now held
by the Jewish state of Israel. A
620-mile pipeline connects the two
points. Dollar-short Britain now
is importing petroleum from the
United States at the rate of $129,-
000, 900 annually. Only cotton
imports exceed this as drain on
Britain's dollars. So resumption
of operations at Haifa is important
to Britain. But Iraq has remained
adamant.
Anglo -Iranian also is involved
in the Iraq picture. It's subsidi-
ary, Middle East Pipeline Co.. has
been unable thus far to get tran
sit rights through Iraq for a big
new pipeline to carry oil from
the Iranian fields to the Mediter-
ranean coast.
distributed By the Associated Press.1