PERSIAN OIL DISPUTE

Press, Volume XC, Issue 27406, 20 July 1954, Page 11

PERSIAN OIL DISPUTE

“Full Agreement Imminent” TEHERAN. July 18. The Persian Minister of Finance (Dr. Ali Amini) tonight announced that agreement in principle had been reached between Persia and the consortium of eight companies formed to market Persian oil. A separate agreement on the compensation issue between Persia and the Anglo-Iranian Oil Company remained to be concluded- He estimated that this would take only two days. The eight companies in the consortium are: Anglo-Iranian, Royal Dutch Shell, the Compagnie Francaise des Petroles, Socony Vacuum, the Standard Oil Company of New Jersey. Standard Oil of California, the Gulf Oil Company and the Texas Oil Company. "The negotiating stage is now ended and the agreement must now bp drafted by 12 international law and financial experts. This should fake more than five days working day and night,” said Dr. Aminj. Persian oil production in the first year of the agreement would be 13,000,000 tons, in the second year 20,000.000 tons, and in the third year 27,000,000 tons. Qn the compensation talks Dr. Amini said that compensation would be “very little, much less than expected—probably less than £30.900.000.” The period of agreement between Persia and the consortium would be 40 years, with an option on renewal after the first 40 years, said Dr. Amini. Persia would get more than £2 a ton for its oil. The consortium representatives tonight withheld all on the negotiations, nut Dr. Amini said the consortium would initially invest 100.000.000 dollars in the Abadan refinery to get the industry going again after its tnree-year shut-down. Persia, unlike other Persian Gulf oil States, wouM Initially not givp the Western oil companies In the consortium a discount pn oil produced and marketed. “Persia will give no discount on the , first year’s output of 13,000.000 tons,” he said. Provided the Persian Parliament ratified the agreement by September, Persian oil should begin to now ipto , the world markets again by November, experts said.