§ 3. Mr. Thomas Reidasked the Secretary of State for Foreign Affairs if he can make a statement about the negotiations between the Government of Iran and the Anglo-Iranian Oil Company.
§ Mr. Ernest DaviesI presume my hon. Friend is referring to the negotiations in regard to the supplemental oil agreement which was signed by the company and the Persian Government in July, 1949. The agreement was recently presented for ratification to the Persian Parliament which referred it to its oil commission which, after reporting unfavourably on it in general terms, has now been instructed to review the position further.
His Majesty's Government cannot be indifferent to the affairs of this important British interest. The company's present concession is valid until 1993, and His Majesty's Government are confident that Persia will honour her agreement. As 1262 to the supplemental oil agreement, His Majesty's Government regard it as fair and reasonable. But, as the matter is under review in Persia, I cannot say more at present except to express the hope that a satisfactory conclusion will soon be reached.
§ Mr. ReidIs it a fact that, in connection with these negotiations, proposals have been made for the nationalisation of the Anglo-Iranian Oil Company?
§ Mr. DaviesNo official proposals of which I am aware have been made either to His Majesty's Government or to the oil company.
§ Mr. ErrollDo the Government tender advice to the company in their capacity as principal shareholder or only as the Government?