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.8               PERSIAN GULP ADMINISTRATION REPORT

                         Lieutenant A. T. Wilson was placed on special duty in the same connection
                     in June and visited Hawizeh, in company with Lieutenant Digby-Beste
                     R. f. M., in order to fix ostronomioally the position of that centre upon the
                     correct location of which relatively to Ahyaz some doubt had. been thrown
                     by recent surveys. The opportunity was also taken to ascertain the precise
                     petition of the frontier to the North-West of Hawiseh as looally observed. ^
                     a result of the above investigations dealing respectively with the frontier, south
                     and north of Hawizeh, and of a further examination of tho frontier in the
                     vicinity of the Shatt-el-Arab, His Majesty’s Government were placed in posse*,
                     cion of maps showing the precise position of the locally observed frontier
                     together with detailed arguments in support of it, on receipt of which, and
                     after a full survey of the historical and iuridioal aspects of the question, a
                     memorandum accompanied by a map was addressed to the Porto explaining
                     detail the lie of the frontier as locally recognised and expressing the hope of
                     His Majesty’s Government that the Porte would consent thereto, in return fop
                     which the former intimated their readiness to use their influence with the
                     Persian Government and the Shaikh of Mohammerah and, subject to certain
                     conditions, to induce these latter to recognise Turkish sovereignty over the
                     whole waterway of the Shatt-el-Arab. Amongst these conditions were included
                     stipulations that the arrangements proposed by His Majesty’s Government
                     for a liiverain Commission were to be accepted by Turkey, and that the Shaikh
                     of Mohammerah wa3 to continue in full enjoyment of his existing proprietary
                     rights in lands situated in Turkish territory.
                         TJp to the end of the year, for reasons explained elsewhere, no reply had
                    been received to the above proposals, but it was understood that the Porte was
                     inclined to regard them favourably, and it is to be hoped that during the coming
                    year a definite solution will be attained. The Turkish Government at all events
                    are now under no misapprehension as to the views of His Majesty’s Government
                    upon the subject, for on May 10th, some months before addressing the above
                    memorandum, the Porte was warned that persistence in her present pretensions
                    in regard to the frontier in the Arabistan region might react unfavourably upon
                    the adjustment of the respective interests of Great Britain and Turkey iu the
                    region of the Persian Gulf, “in view of the close relations existing between
                    His Majesty’s Government and the Shaikh of Mohammerah.”
                        The Anglo-Persian Oil Company has made steady progress during the year
                                                    and may now be said to have reached
                               Oil Company.
                                                    the productive stage, refined oil having
                    been placed in small quantities on the local market; thus from the local point
                    of view, the position of the Company is decidedly satisfactory.
                        His Majesty’s Government, however, viewed with considerable anxiety the
                    prospect, which there is reason to think, is by no means remote, that the Anglo-
                    Persian Oil Company, which is at present entirely British, might be forced by
                    commercial pressure to come to terms with and be virtually absorbed by the
                    Shell Transport Company, which is under foreign control, a consummation
                    which could only result in the increase of foreign interests in the Persian Gulfi
                    and a considerable enhancement of the price of oil, a matter of much concern
                    to the British Admiralty.
                        The question is closely bound up with the prospects of the concession for
                    oil fields in. Mesopotamia being obtained by the Anglo-Persian Oil Company
                    who as Concessionaires on the other side of the border in Persia, would be
                    greatly handicapped, were the Turkish fields, at all events in the wilayats of
                    Baghdad and Mosul, to be in the hands of a rival concern.
                         The Anglo-Persian Oil Company were accordingly supported by Si*
                    Majesty’s Government in their application to the Turkish authorities for a con*
                    cecrion, and negotiations at Constantinople were in active progress at the end
                    of they ear.
                         Tne progress of the Mohammerah-Khoremmabad project has been touched
                                                     on elsewhere; when it materialises, $0
                             Railway* in AxsbisUa.
                                                     undertakings given by the Nizam.-#'
                    Sultaneh in regard to the lands through which the line may pass, will bo o
                    considerable use, whilst the option that His Majesty's Government have sccu#*
                    from the Shaikh of Mohammerah in regard to the Rhor Musa will enable u* 0
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