OIL CONCESSION

Taranaki Daily News, 30 November 1932, Page 7

OIL CONCESSION

ANNULMENT BY PERSIA

WILLINGNESS TO NEGOTIATE

BRITAIN BIG SHAREHOLDER

CLIMAX OF LONG DISPUTE

POWER TO CANCEL DENIED

By Telegraph—Press Assn.—Copyright.

Rec. 11.20 p.m. London, Nov. 29. The Persian Government has notified the Anglo-Persian Oil Company of the annulment of the D’Arcy concession, but is willing to negotiate a new agreement. The company contends the concession contains no provision for cancellation. The concession, which covers 500,000 square miles, was secured by William KnoX D’Arcy, who went to Persia after making a fortune in gold mines in Western Australia and Mount Morgan, Queensland. The Persian Government’s action is the climax of several years’ dispute over royalties arising out of the slump in oil and the restriction of output, says the Times, which emphasises that the British Government is directly affected by the Persian decision apart from its duty to protect legitimate British ■ interests in Persia. In 1919 when the company needed capital and it seemed possible the control of an oilfield of the highest importance to the British Admiralty might pass into foreign hands, the Asquith Government agreed to provide additional’ capital. At the beginning of rhis year the British Government held £7,500,000, more than half the company's £13,425,000 of ordinary shares. It is understood a Cabinet decision will be made immediately the terms of the American debts Note have been settled. . The Anglo-Persian Oil Company holds 374,999 shares in the Commonwealth Oil Refineries, the other 375,001 being held by the Australian Commonwealth Government.