HC Deb 15 October 1952 vol 505 cc204-6
Mr. Eden

With your permission, Mr. Speaker, and that of the House, I wish to make a short statement on the policy of Her Majesty's Government in regard to the Persian oil dispute.

On 30th August joint proposals for a solution of the dispute were communicated to Dr. Musaddiq by the Prime Minister and the President of the United States. The Persian reply to these proposals was received on 24th September. It contained, in addition to a counterproposal which offered no hope of a solution, many inaccurate statements which showed that the joint proposals had not been correctly understood by the Persian Government.

I therefore sent a message to the Persian Prime Minister on 4th October, in the name of Her Majesty's Government, with the object of correcting these misunderstandings. Mr. Acheson sent a similar message on behalf of President Truman.

In spite of these messages the Persian Government, on 7th October, repeated their counter-proposal, and in some ways misrepresented what I had said by way of clarification of the joint proposals. All these communications are being laid before the House and will be available to hon. Members this afternoon.

In the meantime, I would inform the House that Her Majesty's Chargé d'Affaires, acting on instructions, last night delivered a Note to the Persian Government placing the views of Her Majesty's Government on record in terms of which the following is a summary.

First: H.M. Government and the A.I.O.C. accept the nationalisation of the Persian Oil industry as a fact, but in return H.M. Government claim just compensation on behalf of the Company.

Secondly: H.M. Government consider that the question of compensation should be referred to the impartial adjudication of the International Court.

Thirdly: H.M. Government claim compensation on behalf of the A.I.O.C. for the unilateral termination of the 1933 Concession Agreement contrary to the explicit undertaking in the Agreement that it will not be so terminated.

Fourthly: Neither H.M. Government nor the A.I.O.C. seek to revive the 1933 Concession Agreement in any other respect.

Fifthly: As soon as agreement is reached as to the terms on which the question of compensation is to be adjudicated, the A.I.O.C. will be ready to open negotiations as indicated in the joint proposals. As already stated, neither H.M.G. nor the A.I.O.C. insist on the Company securing a monopoly of the purchase of Persian oil.

Sixthly: Pending agreement as to the terms on which the question of compensation is to be adjudicated, H.M. Government on their own behalf and on behalf of the A.I.O.C. reserve their full legal rights.

Mr. H. Morrison

The right hon. Gentleman will be aware that the statement he has made is broadly continuing the policy of the late Government with regard to Persia. [HON. MEMBERS: "Oh."] Oh yes. Therefore, in general, I think it can be taken that we agree with the statement he has made. May I add that we would express the hope that reason may yet come into the minds of the Persian Government, particularly of its Prime Minister, and that an amicable settlement may be reached on this matter?

Mr. Eden

I am much obliged for the latter part of the right hon. Gentleman's question, whatever the reasons for it.