§ Dr. McDonaldasked the Chancellor of the Exchequer whether the Government directors on the board of British Petroleum sit also on the executive committee; and, if not, in what way they are enabled to exercise their power of veto over British Petroleum's decisions.
§ Mr. Joel BarnettThere is no executive committee, but the Government directors have the same rights of access to all relevant information as any other directors. The terms of the veto are set out in article 92 of the company's articles of association.
§ Dr. McDonaldasked the Chancellor of the Exchequer if he will publish the Bradbury-Bridges letters on the relation of the Government to British Petroleum management in the Official Report.
§ Mr. Joel BarnettThe Bradbury letter of 20th May 1914 was published inHansard on 26th March 1929.—[Vol. 226, c. 2261–64.] The Bridges letter of 12th April 1951 reads as follows:
Gentlemen,I am directed by the Lords Commissioners of H.M. Treasury to bring to your attention His Majesty's concern at recent developments in Persia and their possible effect on the Anglo-Iranian Oil Company. H.M. Government have in mind not only their own large financial interest in the Company, but the vast importance of the Company's operations to the economy of the United Kingdom, and indeed to the Sterling area as a whole.The relationship between H.M. Government and the Company forms the subject of the letter sent by Sir John Bradbury to the Company on the 20th May, 1914, following the signature of the Financial Agreement between H.M. Government and the Company of the same date H.M. Government do not feel that it is necessary to amend the terms of Sir John Bradbury's letter. While recognising the close co-operation that has existed between H.M. Government and the Company, they feel sure that the Company will appreciate that it is more than ever necessary, particularly in the present critical circumstances, for H.M. Government to be kept in close touch with the development of the Company's general policy and above all that there should be mutual consultation in good time, and at the appropriate levels, about any developments likely to 271W affect substantially the Company's position in Persia or in other territories where it has a concessionary interest.I am, Gentleman,Your Obedient Servant,(Signed) Edward Bridges"