PERSIAN OILFIELDS.

New Zealand Herald, Volume LI, Issue 15639, 19 June 1914, Page 7

PERSIAN OILFIELDS.

SUPPLIES FOR THE NAVY*

ADMIRALTY'S PURPOSE.

URGE VOTE GRANTED.

By Telegraph—Press Association—Copyright.

(Received Juno 18, 10.20 p.m.)

London, Juno 18. In the House of Commons yesterday, Mr. Churchill (First Lord of the Admiralty) moved for a grant of £2,000,000 out of the Consolidated Fund to acquire control of the Anglo-Persian Oil Company. He stated that tho concession covered an area as largo as Franco and Germany, and the poorer wells alone would suffice for the navy's needs for many years. Prices Almost Doubled. An arrangemont was necessary to prevent tho company being swallowed up by the Shell Transport Company, while tho purchaso would also enable the Government to control tho price of oil fuel.

Mr. Churchill declared that Trinidad and Egypt were unable to meet the naval demands for oil, and it would bo many years before the Scottish shale production was sufficient. When he went to the Admiralty, oil approximately cost the same as coal, but prices had since almost doubled owing to artificial inflation.

The Admiralty did not intend to rely on the Persian oil in an emergency. Only half the supply would b* taken from that quarter. The oil would be brought by the Cape route, which could be easily dofended, and thus save the Suez Canal dues. The cost of the investment would be met with £1,500,000 diverted from the old sinking fund of 1912 and £750,000 diverted from that of 1913. Outside the Neutral Zone. Sir E. Grey, replying to criticisms, said the oil properties were situated in the neutral zoip outside the area of settled control. In the worst contingency two British brigades would be sufficient to proteot the 150 miles of pipe lines to the coast. It would be better if a Persian force under British officials could be used than the Indian Army. Moreovthe natives were pecuniarily interested themselves in protecting the pipes. Mr. E. G. Prettyman (Unionist M.P. for Mid-Essex) cordially supported the scheme. Mr. Churchill pointed out that Mr. Prettyman suggested the policy j 11 years ago. Mr. Ramsay Macdonald (Labour) supported the scheme, and hoped the Government would give the Marcus Samuel oil trust no mercy. The motion was adopted by 254 votes to 18.