ENGLAND & PERSIA

Hokitika Guardian, 21 December 1932, Page 5

ENGLAND & PERSIA

OIL DISPUTE '• ’ '"i ' ' * ;■ CASE TO PLACE BEFORE LEAGUE. .'■ - '■ /'" ’;. <■ (British Official Wireless ) '• ' ' RUGBY, December 19, The dispute, between the British and Persian Governments is being referi ed to. the League of Rations by the British Government under Article Fifteen of the Covenant. It came , before the Council at Geneva to-day. Britain had proposed submitting the dispute to .the Intefnational, Court of Arbitration at The- Hague, but as the Persian-,Gov-ernment disputed the , competence 01 that tribunal to deal with the , case, the- British Government, to present •waste of time, brought it before the League Council.

The British memorandum traces the history of tile concession; which does not expire until 1961, and which contains no provision for unilateral .cancellation. The Persian Goyernmgn,t up to the end of last year had received over eleven million pounds royalty. Tb#‘ situation earlier this year was that a preljminay agreement for modifying the existing basis on wfrjch the royalty is calculated had been reached between the Persian Government and

ths, AngloJPet&ap Oil Compfind approved .‘by the Persian of ministers," and a formal to give H;„effeet, already negosiji.t£d. : and initialled by ‘ representatives^ .of, .the parties, bad "been for some-months under consideration «by;.the .JPergian Government. Although . apparently.. it was ‘dissatisfied wftli' tliis\ proposed, agreement, no alternative' proposals to the company were actually made , . by the ' Persian'Covernment,, The company would have been'perfectly pared to consider such proposals on receiving them, .and if no agreement had been possible, any'’claims .by the Government , againt the ", company should have been submitted- to ~ arbitration in accordance " ’with" the terms of the concession. " ' ; . . The • Persian • Government' however, ‘ intead of ' taking such a ' 'course, 'gent a- communication J to the company,, announcing its deci- j sion to cancel the conversion;'' company replied disputing tlie ,legality J of such unilateral action.- Qh jbeing informed of the situation, the British Government took up the, ,case, in the exercise of their fights, -to protect British nationals.. when injured by acts contrary to international law. committed by another State. After giving the text '.of notes the ; British memorandum says : The, British Goyerpmenfis compelled, to, take..a, serious view pf the situation created- by the | Persian -Government’s action which . could only be regarded as a unilateral act of confiscation, ns- contrary t°.j international law, and as constituting j in this case an international wrong dene fo the tlnited Kingcjomrtn the | parson of the British Company.. 3loro ( oyer,\ v if this action is to fie fqijnwfd;! by an attempt to take possession of the oil ,Company’s ' extensive and im-

mensely valuable properties in Persia, ojr should any action or inactiojn ; by, tiie Persian' Government lead to■ serious.'injury; to the property or person-, Pel of the company, a situation .of utmost gravity. Would arise.’ It is a matter fpr disquietude that the Persian Government has refused to, accept the i’fesporisibility for any loss or damage, although the terms / of the concession iwund the Persian Government "to take. the’ necessary measures for the protection of the property and the employees of the company. The British Government hhs continued most anxious that the difficulties between the Persian - Government anti the company be settled by -an amicable, fair agreemfent. They Emphatically repudiated the, allegation th at they have done (anything to impede' such an stgree- \ ment,-and, in fact, took no stEjJl’ in the matter at .alt until the Pefsiah Government created the present situation by the illegal step of cahc'elling the concession. Obviously negotiations could not be fruitfully pur sited-‘While the Persian Government claimed to treat the concession as having- 'been terminated by their own unilateral act. The British Government ‘ everything in its powPr to co-operate with the League Council in-obtaiilHig ' on amicable, equitable settleihent. They urged upon the Council the necessity of taking appropriate steps to ensure the maintenance of the status, and ’to prevent the interests of the company from' being prejudiced pending" proceedings before the council, i ■» * »• • Sir William ' Malkin, in presentingthe British case to the council, said the Government felt the situation contained elements which required the council to deal with if as n.-matter of urgency. He hoped the matter would he ready for consideration; fat the council meeting to be held on Jam ndry 23rd. V ''