Current Persian Government propaganda against the Anglo-Iranian Oil Co., Ltd., includes the following accusations:

(1) that the Company, disregarding the strong growth of nationalism in Persia, has been slow to adjust terms of its Persian concession agreement;

(2) that the Company has used political interference and economic pressure in its relations with Persia; and

(3) that the Company has used bribery and corruption to further its interests in Persia.

The object of this statement is briefly to reaffirm the Company’s denial of the above accusations.

With reference to (1) above, in adjusting its concession terms the Company has pursued throughout a progressive policy in conformity with Persia’s best interests. As regards financial terms, the concession revision of July 1949, accepted by Persian Government after nearly one year’s examination and discussion of various alternatives based on oil industry practices throughout the world, comprised better terms than those payable by any other oil producer at that time in the Middle East.

When, eighteen months later, the Saudia Arabia Government made a new oil concession agreement embodying a 50/50 percentage sharing formula at the end of 1950, the company offered to discuss a revision of its own terms on a similar basis. Profit-sharing formula had already been lengthily discussed between the Persian Government and the Company as early as 1948, but at no time had the Persian Government showed any readiness to accept such a formula comparable with any adopted elsewhere in the country.

The Persian law for nationalising the Persian oil industry having been passed in May of this year, the Company proposed to Persia in June this year a revision of its concession terms which combined conformity with the principle of nationalisation with maximum financial benefit to Persia.

With reference to (2) above, the Company categorically denies that it has indulged in any sort of political interference, of which no evidence has been or can be produced. It further denies that it has, at any time, resorted to economic pressure on Persia for any purpose or, in particular, to influence Persian consideration of concessionary terms.

It maintains that the very large money occasions advances to which it has made on many occasions to the Persian Government (such as £14,000,000 in 1950, and in 1951 at the rate of £25,000,000 per annum up to April, with a subsequent offer in June of £10,000,000 plus monthly payments of £30,000,000 are examples of such conclusive evidence as to the complete falsity of this accusation.

With reference to (3) above, the Company categorically denies that bribery or corruption has been used in connection with any of its activities or operations in Persia. No evidence to the contrary has been, or can be, produced. Such documentary evidence in support of this accusation as was quoted by Persian propaganda following the seizure of the Company’s Tehran offices last June was clearly either irrelevant or inaccurately quoted.