Control Of Oil - Hardback by Kayal

Author:Kayal [Kayal]
Language: eng
Format: epub
ISBN: 9781136186608
Barnesnoble:
Publisher: Taylor & Francis
Published: 2013-10-28T00:00:00+00:00

In the process an agreement was reached between the Iranian government and members of the consortium. The agreement was signed on August 5, 1954, and ratified by the Majlis in October. The agreement that ended the dispute amounted to a new concession contract. It founded two companies under the Dutch laws for operating the oil industry in Iran. The agreement was to run for twenty-five years, with the right of renewal for three five-year extensions at the option of the consortium under specific conditions.104

The agreement provided Iran with the already prevailing pattern of equal distribution of profits and royalties among the oil-producing countries and the companies. Also, the agreement recognized the National Iranian Oil Company (set up in 1951 by Iran to take over Anglo-Iranian), but it limited its operation to marketing outlets in Iran only. In addition, the National Iranian Oil Company was assigned the provision of services of a non-industrial nature.105

The agreement with Iran was in two parts. The first governed future relations between the consortium and Iran, and the second part specified the terms for the settlement of disputes. In this second part Iran was to pay Anglo-Iranian £66 million claimed by the Anglo-Iranian for losses incurred due to the nationalization of the oil industry. In addition, Anglo-Iranian was to be paid by the American companies, Shell, and Compagnie Francaise the awesome amount of $600,000,000, apparently for the right to share in the riches of Iran. One, however, should not exaggerate the amount and the difficulty Iran would have had in finding the money had she succeeded with nationalization. For the seven members of the consortium paid Anglo-Iranian $90,000,000 in three equal installments over a period of twelve months. The rest, $510,000,000, was to be paid to Anglo-Iranian by allowing it ten cents on every barrel of crude oil and products exported from Iran by the seven companies until the amount had been fully paid.106

It now appears, in historical perspective, and after seeing the terms of the settlement, that the whole Iranian fiasco was just another manifestation of the struggle among the world’s major powers over the control of oil.

Endnotes

1 Edward Ashley Bayne, ‘Crisis of Confidence in Iran’ Foreign Affairs, XXIX, No. 4 (July, 1951), 580.

2 Zuhayr Mikdashi, A Financial Analysis of Middle Eastern Oil Concessions 1901–65 (New York: Frederick A. Praeger, 1966), 74.

3 Charles W. Hamilton, Americans and Oil in the Middle East (Houston, Texas: Gulf Publishing, 1962), 34 and 36.

4 League of Nations, Official Journal, XIV1 (February, 1933), 300-303.

5 Ibid., 291.

6 Ibid., 302.

7 Hamilton, op. cit., 38; Mikdashi, op. cit., 76.

8 Mikdashi, op. cit., 77.

9 Great Britain, Parliament, Parliamentary Debates, House of Commons, Fifth Series, CCCCLXXXIX, (June 21, 1951), col. 752.

10 Ibid.

11 Hamilton, op. cit., 38.

12 Benjamin Shwadran, The Middle East, Oil and the Great Powers (New York: Frederick A. Praeger, 1955), 55–56.

13 Hamilton, op. cit., 38.

14 Laurence Lockhart, ‘The Causes of the Anglo-Persian Oil Dispute,’ Journal of Royal Central Asian Society, XL (April, 1953), 144–145.

15 Great Britain, Parliament, Parliamentary Debates, House of Commons, Fifth Series, CCCLXXIV (September 30, 1941), col.

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