§ 23. Lieut-Commander KENWORTHYasked the Secretary of State for the Colonies whether any oil fields have yet been discovered in the mandated territories of Iraq; whether exploration is in progress; what private company or companies are carrying out this work; whether drilling has commenced and, if so, with what results; whether any royalties on oil will be paid to the native government of Iraq; and what steps are being taken to see that the natives of the country benefit from any exploitation of their oil lands, and that in the granting of licences to win oil there is no special preference given to favoured companies or individuals?
Mr. WOODThere are signs of oil in various parts of Iraq, but how far the deposits are worth working or not is not yet known. No exploration work or 1987 drilling is being carried out in any part of Iraq, except in the narrow strip of territory transferred from Persia to Turkey under the Turco-Persian Frontier Protocol of 17th November, 1913, which is covered by the concession granted to Mr. D'Arcy in 1901 by the Persian Government, and which the Turkish Government agreed to recognise in the Protocol referred to. The Iraq Government as the inheritor of the rights of the Turkish Government will receive a royalty of 16 per cent. of the net profits on any oil which may be obtained in that territory. The form of government which has been set up in Iraq affords ample guarantee of the rights of the natives of the country in the matter of concessions as in other respects, while the rights of other nations are safeguarded by Article 11 of the Draft Mandate. There is no reason to fear that special preference will be shown to any particular company or individuals.
§ Lieut.-Commander KENWORTHYHow does it come about that the Prime Minister in this House two years ago stated that there were considerable oil deposits in Iraq, and held that out as a reason for the vast expenditure?
Mr. WOODI am very glad to find I am in entire agreement with my right hon. Friend. As I have said, there are signs of oil in various parts of Iraq.
§ Mr. SWANIn the event of this oil being exploited by us, has consideration been given to the extent of the standing army which will be necessary, or as to what the cost will be?