800.6363/157
The Ambassador in Great Britain (Davis) to the Secretary of
State
London, July 26,
1920.
[Received August 10.]
No. 3193
Sir: With reference to my telegram No. 1113
of the 24th instant,67 I now have the honor to transmit herewith, for
the information of the Department, five copies of the Anglo-French
Oil agreement, which is referred to officially as the “Memorandum of
Agreement between M. Philippe Berthelot, Directeur des Affaires
Politiques et Commerciales au Ministère des Affaires Étrangeres, and
Professor Sir John Cadman, K.C.M.G., Director in Charge of His
Majesty’s Petroleum Department.”68
I have [etc.]
[Enclosure]
Memorandum of Agreement at San Remo, April
24, 1920, between M. Philippe Berthelot, Directeur des
Affaires Politiques et Commerciales au Ministère des
Affaires Étrangères, and Professor Sir John Cadman,
K.C.M.G., Director in Chargé of His Majesty’s Petroleum
Department69
BY order of the two Governments of France and Great Britain, the
undersigned representatives have resumed, by mutual consent, the
consideration of an agreement regarding petroleum.
- 2.
- This agreement is based on the principles of cordial
co-operation and reciprocity in those countries where the
oil interests of the two nations can be usefully united.
This memorandum relates to the following States or
countries:—
Roumania, Asia Minor, territories of the old Russian
Empire, Galicia, French Colonies and British Crown
Colonies.
- 3.
- The agreement may be extended to other countries by mutual
consent.
- 4.
- Roumania.—The British and French
Governments shall support their respective nationals in any
common negotiations to be entered into with the Government
of Roumania for—
- (a.)
- The acquisition of oil concessions, shares or
other interests belonging to former enemy subjects
or bodies in Rou-mania which have been sequestrated,
e.g., the Steaua Romana, Concordia, Vega, &c,
which constituted in that country the oil groups of
the Deutsche Bank, and of the Disconto Gesellschaft,
together with any other interests that may be
obtainable.
- (b.)
- Concessions over oil lands belonging to the
Roumanian State.
- 5.
- All shares belonging to former enemy concessions which can
be secured and all other advantages derived from these
negotiations shall be divided, 50 per cent, to British
interests and 50 per cent, to French interests. It is
understood that in the company or companies to be formed to
undertake the management and the exploitation of the said
shares, concessions, and other advantages, the two countries
shall have the same proportion of 50 per cent. in all
capital subscribed, as well as in representatives on the
board, and voting power.
- 6.
- Territories of the Late Russian
Empire.—In the territories which belonged to the
late Russian Empire, the two Governments will give their
joint support to their respective nationals in their joint
efforts to obtain petroleum concessions and facilities to
export, and to arrange delivery of petroleum
supplies.
- 7.
- Mesopotamia.—The British Government
undertake to grant to the French Government or its nominee
25 per cent, of the net output of crude oil at current
market rates which His Majesty’s Government may secure from
the Mesopotamian oilfields, in the event of their being
developed by Government action; or in the event of a private
petroleum company being used to develop the Mesopotamian
oilfields, the British Government will place at the disposal
of the French Government a share of 25 per cent, in such
company. The price to be paid for such participation to be
no more than that paid by any of the other participants to
the said petroleum company. It is also understood that the
said petroleum company shall be under permanent British
control.
- 8.
- It is agreed that, should the private petroleum company be
constituted as aforesaid, the native Government or other
native interests shall be allowed, if they so desire, to
participate up to a maximum of 20 per cent. of the share
capital of the said company. The French shall contribute
one-half of the first 10 per cent, of such native
participation and the additional participation shall be
provided by each participant in proportion to his
holdings.
- 9.
- The British Government agree to support arrangements by
which the French Government may procure from the
Anglo–Persian Company supplies of oil, which may be piped
from Persia to the Mediterranean through any pipe-line which
may have been constructed within the French mandated
territory and in regard to which France has given special
facilities, up to the extent of 25 per cent, of the oil so
piped, on such terms and conditions as may be mutually
agreed between the French Government and the Anglo–Persian
Company.
- 10.
- In consideration of the above-mentioned arrangements, the
French Government shall agree, if it is desired and as soon
as application is made, to the construction of two separate
pipe-lines and railways necessary for their construction and
maintenance and for the transport of oil from Mesopotamia
and Persia through French spheres of influence to a port or
ports on the Eastern Mediterranean. The port or ports shall
be chosen in agreement between the two Governments.
- 11.
- Should such pipe-line and railways cross territory within
a French sphere of influence, France undertakes to give
every facility for the rights of crossing without any
royalty or wayleaves on the oil transported. Nevertheless,
compensation shall be payable to the landowners for the
surface occupied.
- 12.
- In the same way France will give facilities at the
terminal port for the acquisition of the land necessary for
the erection of depots, railways, refineries, loading
wharfs, &c. Oil thus exported shall be exempt from
export and transit dues. The material necessary for the
construction of the pipe-lines, railways, refineries and
other equipment shall also be free from import duties and
wayleaves.
- 13.
- Should the said petroleum company desire to lay a
pipe-line and a railway to the Persian Gulf, the British
Government will use its good offices to secure similar
facilities for that purpose.
- 14.
- North Africa and other
Colonies.—The French Government will give facilities to
any Franco–British group or groups of good standing, which
furnish the necessary guarantees and comply with French
laws, for the acquisition of oil concessions in the French
colonies, protectorates and zones of influence, including
Algeria, Tunis and Morocco. It should be noted that the
French Parliament has resolved that groups so formed must
contain at least 67 per cent. French interests.
- 15.
- The French Government will facilitate the granting of any
concessions in Algeria which are now under consideration as
soon as the applicants have complied with all the
requirements of the French laws.
- 16.
- British Grown Colonies.—In so far
as existing regulations allow, the British Government will
give to French subjects who may wish to prospect and exploit
petroliferous lands in the Crown Colonies similar advantages
to those which France is granting to British subjects in the
French colonies.
- 17.
- Nothing in this agreement shall apply to concessions which
may be the subject of negotiations initiated by French or
British interests.
- 18.
- This agreement had to-day been initialled by M. Philippe
Berthelot and Professor Sir John Cadman, subject to
confirmation by the French and British Prime Ministers
respectively.
San
Remo, April 24,
1920.
Confirmed:
- D. Lloyd George
- A. Millerand