Final Terms

Preliminary agreement on a new concession to supplant the disputed D'Arcy oil leases of Anglo-Persian Oil Co. Ltd. was reached three weeks ago (TIME, May 1). Last week came the final agreement and publication of the terms. Well satisfied, Britain's "Petrol Diplomat," tall, professorial Chairman Sir John Cadman of Anglo-Persian, slipped a copy of the new agreement in his pocket, packed his grips and flew from Beirut to Marseilles, after months of bickering, threatening, appeals to the League of Nations, the new-agreement provides: 1) The period of the concession is 60 years from 1933. 2) Area of the concession is reduced from 500,000 sq. mi. (about five-sixths of Persia) to 250,000 sq. mi. until 1938, 100,000 sq. mi. thereafter. 3) The company loses its exclusive right to pipelines in Persia.* 4) The company shall pay four shillings a ton on oil sold in Persia or exported, and -L-225,000 in taxes during the first 15 years, -L-300,000 during the next 15. Taxes for the remaining 30 years to be agreed upon later. 5) Royalties shall be 20% of the net profits of the company after the payment of -L-671,000 in dividends to the shareholders. Persia is to be safeguarded against further depreciation of sterling. 6) The company shall replace its foreign employes by Persians as rapidly as possible; shall spend -L-10,000 a year in scholarships to educate young Persians in Great Britain. 7) Be business good or bad, the minimum annual payment to the Persian Government is to be -L-750,000. 8) For the sale of oil in Persia, prices to the public shall be 10% less than Gulf of Mexico or Rumanian prices, whichever is the lowest at the time, and 25% less to the Persian Government.

*A willing concession by Sir John Cadman. who wishes to pacify the opposition of U. S. oil men long anxious for some share in the Persian fields.

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