§ 3.37 p.m.
§ THE LORD CHANCELLORMy Lords, I desire to take this opportunity of making a Statement with regard to the Persian situation. This Statement is also being made in another place by the Foreign Secretary. It is as follows;
"I have to inform the House that the latest developments in the Persian oil situation are very serious. The temporary board of directors of the so-called National Iranian Oil Company have insisted that the masters of all tankers calling at Abadan to load and take away oil should sign receipts designed to acknowledge that the oil is the property of the National Iranian Oil Company. Masters refusing to sign such receipts, or insisting on adding an endorsement designed to protect the legal rights of the Anglo-Iranian Oil Company, have been informed by the board that customs clearance will be refused for their vessels. No tanker master has yet agreed to sign an unqualified receipt in the form prescribed, and several tankers, some loaded and some waiting to load, are consequently held up in the Port of Abadan. I should like to add that, so far as the tankers under the control of the Company or its associates are concerned, there can be no question of masters signing unqualified receipts. All attempts on the part of the Company's representatives to secure a modification of this procedure have proved fruitless, and the Company, with the 321 full concurrence of His Majesty's Government, is therefore instructing all tankers at Abadan to leave forthwith, if necessary after unloading the oil they have taken on board.
"Another disquieting development is the introduction on June 21 into the Persian Lower House of a Bill which provides for trial by military courts, and penalties up to and including death, for anyone (I quote the words):
'engaging treacherously or with ill-intent in activities in connection with the operation of the Persian national oil industry resulting in cutting oil pipe lines, rendering unserviceable refineries or facilities for transport of oil, causing fire in oil wells or storage tanks, et cetera, or aiding or abetting such acts.'This so-called Sabotage Bill has not yet been voted upon by the Majlis. If it were to become law in its present form, the Persian authorities might seek to lay the blame for any accident in the oilfields, resulting from interference or incompetence, on a member of the Company's staff and render him liable to prosecution before a military court. The staff of the Company in the oilfields would clearly be placed in an intolerable position. Indeed, Mr. Drake, the Company's general manager in the oilfields area, has already received a letter from the Board, stating that in refusing to authorise the masters of tankers to sign receipts in the form prescribed by the Board he is stopping the export of oil, which in the Board's view amounts to sabotage. In view of this unfounded charge of sabotage, and the ultimatum given to him that he should transfer his services to the National Oil Company by June 28, the Company, with the full agreement of His Majesty's Government, has instructed him to proceed to Basra, where he will continue to hold his appointment as general manager of the Company's operations in Persia and Iraq. Mr. Mason has been appointed the Company's representative in Persia for all matters requiring contact with the Temporary Board of Management of the National Iranian Oil Company."In connection with the accusation of sabotage which the Persians have seen fit to make against Mr. Drake, the Persian Government have been repeatedly warned of the danger of the risk of accidents involving danger to life and limb which may result from 322 interference in the working of the complex machine of the industry. If such accidents occur, it is certain that they will in no way be due to the actions of the Company's personnel, who have proved themselves thoroughly competent and have in fact been instructed to refrain from any action liable to prejudice the working of the operations. I must therefore categorically reject in advance any suggestion that such accidents which may occur could be caused by acts of sabotage on the part of the British staff.
"If the Persian Government persist in these measures, they would leave the Company with no alternative but to bring operations at Abadan to a stop within a matter of days. Storage capacity is strictly limited and the refinery cannot operate unless tankers are available to take oil. Clearly a most serious and difficult situation may develop in Southern Persia, for which the Persian Government would be entirely responsible. The Persian Prime Minister and Government must understand that they are responsible under International Law for ensuring the protection of any British subjects in Persia. Should they prove incapable of discharging that task, His Majesty's Government would be compelled to assume it themselves, using such means as are necessary for that purpose. The House may rest assured that we have made preparations to this end and can take action at very short notice. The House will not expect me at this juncture to give details of what these preparations are, but I can inform your Lordships that the cruiser H.M.S. "Mauritius" has been ordered to proceed forthwith to the vicinity of Abadan.
"We are still, as always, ready to discuss a settlement of the question of the future operations of the Anglo-Iranian Oil Company with the Persian Government. Such a settlement remains, in our opinion, the only means of ensuring the continued flow of Persian oil to its natural markets, and it is a matter of deep regret that the Persian Government should appear to be taking steps which cannot but involve disastrous consequences for the future prosperity of their country."
§ 3.45 p.m.
§ THE MARQUESS OF SALISBURYMy Lords, arising from the serious Statement which has been made by the noble and learned Viscount, the Lord Chancellor, on behalf of the Government, may I, on behalf of those who sit on these Benches, welcome the categorical statement by His Majesty's Government that they are taking all necessary steps to protect the lives and security of British nationals in the Abadan area, and that they have given the necessary orders for tankers to leave the port. There is one question which I would put to His Majesty's Government. Will they make it clear to the Persian Government that they will not accept the assumption that in this dispute there is any difference between His Majesty's Government and the Company, and that they will do whatever is necessary to ensure that British interests receive proper support? The situation clearly cannot be allowed to drift any further.
§ VISCOUNT SAMUELMy Lords, in the present grave situation in Persia, it is clear that the policy adopted by His Majesty's Government is the only one possible, and I am sure that such measures as are necessary for the fulfilment of that policy will have the support of all sections of your Lordships' House.
§ THE LORD CHANCELLORMy Lords, in answer to the noble Marquess, I may say quite categorically that there is not the slightest difference of view or difference of opinion between the Company and His Majesty's Government. His Majesty's Government are standing behind the Company, and the Company at every stage are taking the opinion and acting on the advice of His Majesty's Government. We shall do everything we can to support and strengthen and maintain the Company in the course upon which we have decided.