PERSIAN OIL

Dominion, Volume 26, Issue 104, 26 January 1933, Page 9

PERSIAN OIL

Repudiated Contract LEAGUE TO JUDGE Hopes for Settlement Official Wireless. Rugby, Jan. 24. At Geneva to-day, the League of Nations Council appointed Dr. Benes, of Czecho-Slovakia, rapporteur on the dispute between the British Government and the Persian Government regarding the repudiation by the latter of the Anglo-Persian Oil Company’s contract, instructing him to get into touch with both parties and report back to the Council. The matter will be taken up by. the Council on Thursday, when the British Government’s ease will be presented by the Foreign Minister, Sir John Simon, who left London for Geneva this afternoon. The Persian delegation at Geneva has already revealed some of the arguments by which they hope to justify the repudiation of the contract, and their contention that, as the company ought to have had recourse to the Persian courts, the case is not one with which the League ought to deal. From information available, however, it appears that many of the statements contained in the Persian Government’s memorandum are based on a misunderstanding, and it is hoped that the majority of points in dispute will easily be cleared up upon explanation in the conciliatory atmosphere of the League. The British delegation is leaving Its arguments for Thursday’s Council meeting, when Sir John Simon will justify the action of the British Government in bringing the case before, the League, a course of action which, it is hoped in London, will produce an amicable and equitable settlement, beneficial to both parties. Some surprise has been caused in London by the statement in the Persian Government’s memorandum that the Anglo-Persian Company was confined to the extraction of oil for over thirty years to an “area of a little more than one square mile,” and the contention that the company had intended to develop its concession to the fullest possible limits. Actually, the area of the company’s Persian oilfields, from tbe whole of which oil is now being extracted, amounts to about 150 square miles. The company has technically examined over 150,000 square miles, drilled 140,000 ft.. carried out 380 geological surveys, and spent £3.500,000 on work of this character outside two proved and producing oilfields.