Agreement between The Imperial Government of Persia and the Anglo-Persian* Oil Company, Limited

Made at Tehran on April 29th 1933.


For the purpose of establishing a new concession to replace that which war granted in 1901 to William Knox D’Arcy, the present Concession is granted by the Persian government and accepted by the Anglo-Persian Oil Company Limited.

This concession shall regulate in the future the relations between the two parties above mentioned.


The following definitions of certain terms used in the present agreement are applicable fo the purposes hereof, without regard to any different meaning which may or might be attributed to those terms for other purposes:

“The Government means the Imperial government of Persia;

“The company” means the Anglo-Persian Oil Company Limited and all its subordinate companies;

“The Anglo-Persian Oil Company Limited” means the Anglo-Persian Oil Company Limited or any other body corporate to which, with the consent of the Government (Article 26), this Concession might be transferred;

“Subordinate Company” means any company for which the Company has the right to nominate directly or indirectly more than on-half of the directors, or in which the company holds, directly or indirectly, a number of shares sufficient o assure it more that 50 percent of all voting rights at the general meetings of such a company.

“Petroleum” means crude oil, natural gases, asphalt, ozokerite, as well as all products obtained either from these substances or by mixing these substances with other substances.

“Operations of the company in Persia” means all industrial, commercial, and technical operations carried on by the company exclusively for the purposes of this Concession.

Article 1

The Government grants to the Company, on the terms of this concession, the exclusive right, within the territory of the Concession, to search for and extract petroleum as well as to refine or treat in any other manner and render suitable for commerce the petroleum obtained by it.

The Government also grants to the Company, throughout Persia, the non-exclusive right to transport petroleum, to refine or treat it in any other manner and to render it suitable for commerce, as well as to sell it in Persia and to export it.

Article 2

  1. The territory of the Concession, until December 31st 1938, shall be the territory to the south of the violet lie drawn on the map signed by both parties and annexed to the present Agreement.
  2. The Company is bound, at latest by December 31st 1938, to select on the territory above mentioned one or several areas of such shape and such size and so situated as the company may deem suitable. The total area of the area or areas selected must not exceed one hundred thousand English square miles (100,000 square miles), each liner mile being equivalent to 1,609 metres.

The company shall notify to the Government in writing on December 31st, 1938 or before that date, the area or areas which it shall have selected as above provided. The maps and data necessary to identify and define the area or areas which the company shall have selected shall be attached to each of notification.

  1. After December 31st 1938, the Company shall no longer have the right to search for and extract petroleum except on the area or areas selected by it under paragraph B above, and the territory of the concession, after that date, shall mean only the area or areas so selected and the selection of which have been notified to the government as above provided.

Article 3

The company shall have the non-exclusive right to construct and to own pipe-line. The Company may determine the position of its pipelines and operate them.

Article 4

  1. Any unutilised lands belonging to the Government, which the company shall deem necessary for its operations in Persia and which the government shall not require for purposes of public utility, shall be handed over gratuitously to the Company.

The manner of acquiring such lands shall be the following: Whenever any land becomes necessary to the company, it is bound to send to the Ministry of Finance a map or maps on which the land the Company needs shall be shown in colour. The Government undertakes, if it has no objection to make, to give its approval within a period of three months after receipt of the company’s request.

  1. Lands belonging to the Government, of which use is being made and which the company shall need, shall be requested of the Government in the manner prescribed in the preceding paragraph, and the government, in case it should not itself need these lands and should have no objection to make, shall give, within a period of three months, its approval to the sale asked for by the company.

The price of these lands shall be paid by the Company; such price must be reasonable and not exceed the current price of lands of the same kind and utilised in the same manner in the district.

  1. In the absence of a reply from the Government to requests under paragraphs A and B above, after the expiry of two months from the date of receipt of the said requests, a reminder shall be sent by the Company to the government; should the Government fail to reply to such reminder within a period of one month, its silence shall be regarded as approval.
  2. Lands which do not belong to the Government and which are necessary to the Company shall be acquired by the Company, by agreement with the parties interested, and through the medium of the Government.

In case agreement should not be reached as to the prices, the Government shall not allow the owners of such lands to demand a price higher than the prices commonly current for neighbouring lands of the same nature. In valuing such lands, no regard shall be paid to the use to which the Company may wish to put them.

  1. Holy places and historical monuments, as well as places and sites of historical interest, are excluded from the foregoing provisions, as well as their immediate surroundings for a distance of at least 200 meters.
  2. The Company has the non-exclusive right to take within the territory of the concession, but not elsewhere, on any unutilised land belonging to the State, and to utilise gratuitously for all the operations of the company, any kinds of soil, sand, lime gypsum, stone and other building materials, it is understood that if the utilisation of the said materials were prejudicial to any rights whatever of third parties, the Company should indemnify those whose rights were infringed.

Article 5

The operation of the Company in Persia shall be restricted in the following manner:

1)       The construction of any new railway line and of any new port shall be subject to a previous agreement between the government and the Company

2)       If the Company wishes to increase its existing service of telephones, telegraphs, wireless and aviation in Persia, it shall only be able to do so with the previous consent of the Government.

If the Government requires to utilise the means of transport and communication of the company for national defence or in other critical circumstances, it undertakes to impede as little as possible the operations of the Company, and to pay it fair compensation for all damages caused by the utilisation above mentioned.

Article 6

  1. The Company is authorized to effect, without special licence, all imports necessary for the exclusive needs of its employees on payment of the Custom duties and other duties and taxes in force at the time of importation.

The Company shall take the necessary measures to prevent the sale or the handing over of products imported to persons not employed by the Company.

  1. The Company shall have the right to import, without special licence the equipment, material, medical and surgical instruments and pharmaceutical products, necessary for its dispensaries and hospitals in Persia and shall be exempt in respect thereof from any Custom duties and other duties and taxes in force at the time of importation, or payments of any nature whatever to the Persian State or to local authorities.
  2. The Company shall have the right to import, without any licence an exempt from Custom duties and from any taxes or payments of any nature whatever to the Persian State or to local authorities, anything necessary exclusively for the operations of the company in Persia.
  3. The Exports of petroleum shall enjoy Customs immunity and shall be exempt from any taxes or payment of any nature whatever to the Persian State or to local authorities.

Article 7

  1. The Company and its employees enjoy the legal protection of the Government.
  2. The Government shall give, within the limits of the laws and regulations of the country, all possible facilities for the operations of the company in Persia.
  3. If the Government grants concessions to third parties for the purpose of exploiting other mines within the territory of the Concession, it must cause the necessary precautions to be taken in order that these exploitations do not cause any damage to the installations and works of the company.
  4. The Company shall be responsible for the determination of dangerous zones for the construction of habitations, shop and other buildings in order that Government may prevent the inhabitants from settling there.

Article 8

The Company shall not be bound to convert into Persian currency any part whatsoever of its funds, in particular any proceeds of the sale of its exports from Persia.

Article 9

The Company shall immediately make its arrangements to proceed with its operations in the province of Kermanshah through a subsidiary company with a view of producing and refining petroleum there.

Article 10

I.                     the sums to be paid to the Government by the company in accordance with this Agreement (beside those provided in other articles) are fixed as follows:

a)       An annual royalty, beginning on January 1st 1933, of four Shillings per ton of petroleum sold for consumption in Persia or exported from Persia.

b)       Payment of a sum equal to twenty per cent (20%) of the distribution to the ordinary stockholders of the Anglo-Persian Oil Company Limited, in excess of the sum of six hundred and seventy-one thousand two hundred and fifty pounds sterling (£671,250), whether it relates to the reserves of that company, exceeding the reserves which, according to its books, existed on December 31st 1932;

c)       The total amount to be paid by the company for each calendars (Christian) year under sub-clauses (a) and (b) shall never be less than seven hundred and fifty thousand pounds sterling (£ 750,000)

II.                   Payments by the company under this Article shall be made as follows:

a)       On March 31st, June 30th, September 3oth and December 31st of each year, on each occasion one hundred and eighty-seven thousand five hundred pounds sterling (£ 187,500) (the payment relating to March 31st, 1933, shall be made immediately after the ratification of the present Agreement);

b)       On February 28th, 1934, and thereafter on the same date in each year, the amount of the tonnage royalty for the previous year provided for in sub-cause I (a) less the sum of seven hundred and fifty thousand pounds sterling (£ 750,000), already paid under sub-clause II (a);

c)       Any sum due to the government under sub-clause I (b) of this article shall be paid simultaneously with any distribution to the ordinary stockholders.

III.                  On the expiration of this Concession, as well as in the case of surrender by the company under Article 25, the Company shall pay to the government a sum equal to twenty percent (20%) of:

a)       The surplus difference between the amount of the reserves (General Reserve) of the Anglo-Persian Company Limited at the date of the expiration of the Concession or of its surrender, and amount of the same reserves at December 31st, 1932.

b)       The surplus difference between the balance carried forward by the Anglo-Persian Oil Company limited at the date of the expiration of the Concession or of its surrender and the balance carried forward by that Company at December 31st 1932. Any payment due to the Government under this clause shall be made within a period of one month from the date of the general meeting of the company following the expiration or the surrender of the concession.

IV.                The Government shall have the right to check the returns relation to sub-clause I (a) which shall be made to it at latest on February 28th for the proceeding year.

V.                  To secure the Government against any loss which might result from fluctuations in the value of English currency, the parties have agreed as follows:

a)       If, at any time, the price of gold in London exceeds six pounds sterling per ounce (ounce troy), the payment to be made by the company in accordance with the present Agreement (with the exception of sums due to the Government under sub-clause I (b) and clause III (a) and (b) of this article and sub-clause I (a) of Article 23) shall be increase by one thousand four hundred and fortieth part 1/1440 for each penny of increase of the price of gold above six pounds sterling (£ 6) per ounce (ounce troy) on the due date of the payments;

b)       If, at any time the Government considers that gold has ceased to be the general basis of values and that the payments above mentioned no longer give it the security which is intended by the parties, the parties shall come to an agreement as to the modification of the nature of the security above mentioned, or the Arbitration Court (Article 22) which shall decide whether security provided in sub-clause (a) above ought to be altered and if so, shall settle the provisions to be substituted therefore and shall fix the period to which such provisions shall apply.

VI.                In case of delay, beyond the dates fixed in the present Agreement, which might be made by the Company in the payment of sums due by it to the Government, interest at five percent (5%) per annum shall be paid for the period of delay.

Article 11

1.                               The Company shall be completely exempt, for its operations in Persia, for the first thirty years, from any taxation present of future of the State and of local authorities; in consideration therefore the following payments shall be made to the Government:

a)       During the first fifteen years of this Concession, on February 28th of each year and, for first time on February 28, 1934, nine pence for each of the first six million ( 6,000,000) tons of petroleum on which the royalty provided for in Article 10, I (a), is payable for the preceding calendar (Christian) year, and six pence for each ton in excess of the figure of six million (6,000,000) tons above defined;

b)       The Company guarantees that the amount paid under the preceding sub-clause shall never be less than two hundred and twenty-five thousand pounds sterling (£225,000);

c)        During the fifteen years following, one shilling for each of the first six million (6,000,000) tons of petroleum, on which the royalty provided for in Article 10, I (a), is payable for the preceding calendar year, and nine pence for each ton in excess of the figure of 6,000,000 tons above defined.

d)       The Company guarantees that the amount paid under the preceding sub-clause (e) shall never be less than three hundred thousand pounds sterling (£300,000).

II.                               before the year 1963, the parties shall come to an agreement as to the amounts of the annual payments to be made in consideration of the complete exemption of the company for its operations in Persia from any taxation of the State and of local authorities, during the second period of thirty years extending until December 31, 1993.

Article 12

A.                  The Company, for its operations in Persia in accordance with the present Agreement, shall enjoy all means customary and proper to ensure economy in and good returns from its operations, to preserve the deposits of petroleum and to exploit its Concession by methods in accordance with the latest scientific progress.

B.                   If, within the territory of the Concession, there exist other mineral substances than petroleum or woods and forests belonging to the government, the Company may not exploit them in accordance with the present concession, nor object to their exploitation by other persons (subject to the due compliance with the terms of clause C of Article 7); but the company shall have the right to utilise the said substances or the woods and forest above mentioned if they are necessary for the exploration or the extraction of petroleum.

C.                  All boreholes which, not having resulted in the discovery of petroleum, produce water or precious substance, shall reserved for the Government which shall be immediately informed of these discoveries by the Company, and the Government shall inform the Company as soon as possible if it wishes to take possession of them. If it wishes to take possession, it shall watch that the operations of Company be not impeded.

Article 13

The Company undertakes to send, at its own expense and within a reasonable time, to the Ministry of finance, whenever the representative of the government shall request it, accurate copies of all plans, maps, sections and any other data whether topographical, geological or of drilling relating to the territory of the concession, which are in its possession.

Further more, the company shall communicate to the Government throughout the duration of the concession all important scientific and technical data resulting from its work in Persia.

All these documents shall be considered by the Government as confidential.

Article 14

  1. The Government shall have the right to cause to be inspected at its wish, at any reasonable time, the technical activity of the company in Persia, and to nominate for this purpose technical specialist experts.
  2. The Company shall palace at the disposal of the specialist experts nominated to this end by the Government, the whole of its records relative to scientific and technical data, as well as all measuring apparatus and means of measurement, and these specialist experts shall, further have the right to ask for any information in all the offices of the company and on all the territories in Persia.

Article 15

The Government shall have the right to appoint a representative who shall be designated “Delegate of the Imperial Government: this representative shall have the right:

1)                   To obtain from the Company all the information to which the stockholders of the Company are entitles;

2)                   To be present at all the meetings of the Board of Directors, of its committees and at all the meetings of stockholders, which have been convened to consider any question arising out of the relations between the Government and the Company;

3)                   To preside ex officio, with a casting vote, over the Committee to be set up by the  company for the purpose of distributing the grant for an supervising the professional education in Great Britain of Persian nationals referred to in Article 16.

4)                   To request that special meetings of the Board of Directors be convened at any time, to consider any proposal that the Government shall submit to it. (These meeting shall be convened within fifteen days form the date of the receipt by the Secretary of the  Company of request in writing to that end.)

The Company shall pay to the Government to cover the expenses to be borne by it in respect of the salary and expenses of the above-mentioned delegate a year by sum of two thousand pounds sterling (£2,000). The Government shall notify the Company in writing of the appointment of this delegate and of any changes in such appointment.

Article 16

         I.      Both parties recognise and accept as the principle governing the performance of this Agreement the supreme necessity, in their mutual interest, of maintaining the highest degree of efficiency and of economy in the administration and the operations of the Company in Persia.

       II.      It is, however, understood that the Company shall recruit its artisans to the extent that it shall find in Persia persons who possess the requisite competence and experience. It is likewise understood that the unskilled staff shall be composed exclusively of Persian nationals.

      III.      The parties declare themselves in agreement to study and prepare a general plan of yearly and progressive reduction of the non-Persian employees with a view to replacing them in the shortest possible time and progressively by Persian nationals.

    IV.      The Company shall make a yearly grant of ten thousand pounds sterling in order to give in Great Britain, to Persian Nationals, the professional education necessary for the oil industry.

The said grant shall be expended by Committee which shall be constituted as provided in article 15.

Article 17

The Company shall be responsible for organizing and shall pay the cost of the provision, control and upkeep of sanitary and public health services, according to the requirements of the most modern hygiene practised in Persia, on all the lands of the company and in all buildings and dwellings, destined by the Company for the use of its employees, including the workmen employed within the territory of the concession.

Article 18

Whenever the Company shall make issues of shares to the public, the subscription lists shall be opened at Tehran at the same time as elsewhere.

Article 19

The Company shall sell for internal consumption in Persia, including the needs of the Government, motor spirit, kerosene and fuel oil produced from Persian petroleum, on the following basis:

a)       On the first of June in each year, the Company shall ascertain the average Roumanian F.O.B prices for motor spirit, kerosene and fuel oil and the average Gulf of Mexico F.O.B. prices for each of these products during the preceding period of twelve months ending on April 30th . The Lowest of these average Prices shall be selected. Such prices shall be the “basic prices” for a period of one year, beginning on June 1st. The “Basic prices” shall be regarded as being the prices at the refinery.

b)       The Company shall sell (1) to the Government for its own needs and not for resale, motor spirit, kerosene and fuel oil at the basic prices provided in sub-clause (a) above, with a deduction of twenty-five percent (25%); (2) to other consumers at the basic prices with a deduction of ten percent (10%).

c)       The Company shall be entitled to add to the basic prices mentioned in sub-clause (a), all actual costs of transport and of distribution and of sale, as well as any imposts and taxes on the said products.

d)       The Government shall forbid the export of the petroleum products sold by the Company under the provisions of this article.

Article 20

I.               (a) During the last ten years of the Concession, or during the two years from the notice preceding the surrender of the Concession provided in Article 25, the Company shall not sell or otherwise alienate except to subordinate companies, any of its immovable properties in Persia. During the same period, the Company shall not alienate or export any of its movable property whatever except such as has become unutilisable.

(b) During the whole of the period preceding the last ten years of the Concession, the Company shall not alienate any land obtained by it gratuitously from Government; it shall not export from Persia any movable property, except in the case when such property shall have become unutilisable or shall be no longer necessary for the operations of the Company  in Persia.

II.             At the end of the Concession, whether by expiration of time or otherw8se, all the property of the company in Persia shall become the property of the Government in proper working order and free of any expenses and of any encumbrances.

III.            The expression “all property” comprises all the lands, buildings and workshops, constructions, wells, jetties, roads, pipe-line, bridges, drainage and water-supply systems, engines, installations and equipment (including tools) of any sort, all means of transport and communication in Persia (including for example, automobiles, carriages, aeroplanes), any stocks and any other object in Persia which the Company is utilising in any manner whatsoever for the objects of the Concession

Article 21

The contracting parties declare that they base the performance of the present Agreement on principles of mutual goodwill and good faith as well as on reasonable interpretation of this Agreement.

The Company formally undertakes to have regard at all times and in all places to the rights, privileges and interest of the Government and shall abstain from any action of omission which might be prejudicial to them.

This Concession shall not be annulled by the Government and the terms therein contained shall not be altered either by general or special legislation in the future, or by administrative measure or any other acts whatever of the executive authorities.

Article 22

A.      Any differences between the parties of any nature whatever and in particular any difference arising out of the interpretation of this Agreement and of the rights and obligations therein contained as well as any differences of opinion which may arise relative to questions for the settlement of which, by the terms of this Agreement, the agreement of both parties is necessary, shall be settled by arbitration.

B.      The party which requests arbitration shall so notify the other party in writing. Each of the parties shall appoint and arbitrator, and the two arbitrators, before proceeding to arbitration, shall appoint an umpire. If the two arbitrators cannot, within two months, agree on the person of the umpire, the latter shall be nominated, at the request of either of the parties, by the President of Permanent Court of International Justice. If the President of the Permanent Court of International Justice belongs to a nationality or a country which, in accordance with clause C, is not qualified to furnish the umpire, the nomination shall be made by the Vice President of the Said Court.

C.      The umpire shall be of a nationality other than Persian or British; furthermore, he shall not be closely connected with Persia or with Great Britain as belonging to a dominion, a protectorate, a colony, a mandated country or other country administered or occupied by one of the two countries above motioned or as being or having been in the service of one of these countries.

D.      If one of the parties does not appoint its arbitrator or does not advise the other party of its appointment, within sixty days of having received notification or the request for arbitration, the other party shall have the right to request the President of the Permanent Court or International Justice (or the Vice-President in the case provided at the end of clause B) to nominate a sole arbitrator, to be chosen from among persons qualified as above mentioned, and, in this case, the difference shall be settled by this sole arbitrator.

E.      The procedure of arbitration shall be that followed, at the time of arbitration, by the Permanent court of International Justice. The place and time of arbitration shall be fixed by the umpire or by the sole arbitrator provided for in clause D, as the case may be.

F.      The Award shall be based on the juridical principles contained in Article 38 or the Statutes of the Permanent court of International Justice.  There shall be no appeal against the Award.

G.     The Expenses of arbitration shall be borne in the manner determined by the Award.

Article 23

I)                     In full settlement of all the claims of the Government of any nature in respect of the past until the date of coming into force of this Agreement (Except in regard to Persian Taxation), the Company; (a) shall pay within a period of thirty days from the said date the sum of one million pounds sterling (£1,000,000) and besides, (b) shall settle the payments due to the Government for the financial years 1931 and 1932 on the basis of Article 10 of this Agreement and not on that of the former D’Arcy Concession, after deduction of two hundred thousand pounds sterling (£200,000) paid in 1932 to the Government as an advance against the royalties and £113,43s 10d. Placed on deposit at the disposal of the Government.

II)                   Within the same period, the Company shall pay to the Government in full settlement of all its claims in respect of taxation for the period from March 21st, 1930, to December 31st 1932, a sum calculated on the basis of sub-clause (a) of clause I or Article 11, but without guarantee provided in sub-clause (b) of the same clause.

 Article 24

If, by reason of the annulment of the D’Arcy Concession, litigation should arise between the Company and private persons on the subject of the duration of lease made in Persia before December 1st 1932, within the limits allowed by the D’Arcy Concession, the litigation shall be decided according to the rules of interpretation following:

a)       If the lease is to determine, according to its terms, at the end of the D’Arcy Concession, it shall retain its validity until May 28th 1961, not withstanding the annulment of the said Concession;

b)       If it has been provided in the lease that it shall be valid for the duration of the D’Arcy Concession and, in the event of its renewal, for the duration of the renewed Concession, the lease shall retain its validity until December 31st 1993.

Article 25

The Company shall have the right to surrender this Concession at the end of any Christian calendar years, on giving to the Government notice in writing two years previously.

On the expiry of the period above provided, the whole of the property of the Company in Persia (defined in Article 20, III) shall become free of cost and without encumbrances the property of the Government in proper working order and the Company shall be released from any engagement for the future. In case there should be disputes between the parties concerning their engagements before the expiry of the period above provided the difference shall be settled by arbitration as provided in Article 22.

Article 26

This Concession is granted to the Company for the period beginning on the date of its coming into force and ending on December 1993.

Before the date of December 1993, this Concession can only come to and end in the case that the Company should surrender the Concession (Article 25) or in the case that the Arbitration Court should declare the Concession annulled as a consequence of default of the company in the performance of the present Agreement.

The Following cases only shall be regarded as default in the sense:

a)       if any sum awarder to Persia by the Arbitration Court has not been paid within one month of the date of the award;

b)       if the voluntary of compulsory liquidation of the company be decided upon.

In any other cased of breach of the present Agreement by one party or the other, the Arbitration Court shall establish the responsibilities and determine their consequences.

Any transfer of Concession shall be subject to confirmation by the Government

Article 27

This Agreement shall come into force after ratification by the Majlis and promulgation by Decree of His Imperial Majesty the Shah. The Government undertakes to submit this Agreement, as soon as possible, for ratification by the Majlis.

Made at Tehran the Twenty-ninth April one thousand nine hundred and thirty-three (29th April, 1933)

For the Imperial Government of Persia:

(Signed S. H. Taqizadeh

for and on behalf of the Anglo Persian Oil Company Limited:

(Signed) John Cadman, Chairman

               W. Fraser, Deputy Chairman

This Agreement came into force on May 29th, 1933, following its ratification by the Majlis on May 28th, 1933, and the Royal assent, given on May 29th, 1933.)

Source: League of Nations Official Journal, 14th year, No. 12, 77th Session (December 1933), PP. 1653-1660. Annex 1467. (Translation.)

Text of the Laws Nationalizing the Oil Industry of Iran 1951

The single Article Law of March 20, 1951

For the Happiness and Prosperity of the Iranian Nation and for the purpose of securing world peace, it is hereby resolved that the oil industry throughout all part of country, without exception, be nationalized; that is to say, all operation of exploration, extraction and exploitation shall be carried out by the Government.

Passed by the Majlis on March 15, 1951, and by the Senate on March 20, 1951. Signed and promulgated by the Shah May1, 1951.

Sources of text: Iranian Embassy, Washington, D.C. Some documents on the Nationalization of the Oil Industry in Iran (n.d. [1951], p.2.

Law regulating Nationalization of the Oil Industry

1)       For the purpose of regulating the execution of the Law of 20th March, which nationalize the Oil industry throughout the country, a Mixed Board shall be formed. This board shall consist of five members of the Senate and five deputies of the Majlis to be elected by each of these two bodies, the Minister of Finance in office or his deputy, and one other person to be selected by the Government.

2)       Under the supervision of the Mixed Board the Government is charged to remove forthwith the former Anglo-Iranian Oil Company from control of the Oil Industry of the country; should the Company make its claim for compensation and excuse to forestall prompt delivery, the Government may deposit up to 25% of the current income, less cost of production, in the Bank Melli or any Bank acceptable to both parties to secure the claim.

3)       Under the supervision of the Mixed Board the Government is charged to investigate the lawful and rightful claims of the Government as well as those of the Company, to report its view thereon to the two Houses of Parliament and upon ratification to give effect thereto.

4)       From Esfand 20th 1329 (march 20, 1951) when the Bill for the nationalization of the Oil Industry received the ratification of the Senate the Iranian nation being lawfully and unquestionably entitled to the entire earnings derived from Oil and Oil Products, The Government, under the supervision of Mixed Board is charged to investigate and check the accounts of the Company; similarly, the Mixed Board must meticulously supervise the exploitation of the Oil Resources from the date this Law went into effect until the appointment of a Board of Management.

5)       As soon as possible, the Mixed Board shall prepare the Charter of the national Oil Company including therein provision for the appointment of a Board of Management and a Board of Technical Experts; such Charter shall be submitted to the houses for their ratification.

6)       For the purpose of gradually replacing foreign technicians, the Mixed Board is charged to draw up regulations for the annual selection through competitive examinations of students to be sent abroad for education, training and experience in the various branches of the Oil Industry; these regulations after being ratified by the two Houses shall be put into effect by the Ministry of Education. The cost of education of these students shall be paid out of the oil earnings.

7)       Purchasers of the products of the oil fields from which the former Anglo-Iranian Oil Company has been removed can hereafter purchase annually at the current world market prices the same quantities purchased by them during the period commencing from the beginning of 1948 up to 29th Esfand 1329 (March 20, 1951); for any additional quantities they shall also enjoy priority, other conditions being equal.

8)       All proposals of the Mixed Board shall be delivered to the Majlis and if approved by the Oil Commission the latter shall submit a report thereon to the Majlis for ratification.

9)       The Mixed Board must complete its work within three months of the ratification of the Law and submit a report of its action to the Majlis in accordance with Article 8. Should the Board need a longer period of time it may ask for an extension giving adequate reasons therefore.

Passed by the Majlis on April 30, 1951, and by the Senate on May 1, 1951. Signed and promulgated by the Shah on May 2, 1951.

Source of text: Iranian Embassy, Washington. Dc.. Some documents on the nationalization of the Oil Industry in Iran (n.d. [1951], pp.3-4)

Iranian Declaration Accepting as Compulsory the Jurisdiction of the Permanent Court of International Justice

(See English translation below)


Le Gouvernement Imperial de Perse declare reconnaitre comme obligatoire de plain droit et sans convention speciale, vis-à-vis de’ out autre Etat acceptant la meme obligation, c’est-a-dire sous condition de reciprocite, la juridiction de la Court Premanent de Justice Internationale, conformemem=nt a l’article 36, paragraphe 2, du Statut de la Cour, sur tout les differends qui s’eleveraient après la ratification de la presennte declaration, au sujet de situations ou de faits ayant directment ou indirectement trail a l’application des traits ou conventions acceptes par la Perse et posterieurs a la ratification de cette declaration, exception faite pour:

a)       les differends ayant trait au staut territorial de la Perse, y compris ceux relatif a ses droits de souverainete sur ses iles et port;

b)       le differends relatife a des questions qui, d’apres le dorit international, releveraien exclusivement de la juridiction de la Perse.

Toutfois, le Government imperial de Perse se reserve le droit de demander la suspension de la procedure devant la Court pour tout differend soumis au Conseil de la Societe de Nations.

Le presente declaration est faite pour une duree de six ans; a l’expiration de ce delai, elle continuera a avoir ses pleins effets jusqq’a ce que notification soit donnee de son abrogation.

Geneve, 2 October 1930

(signe) Hussein Ala

(Translation by Secretariat of the League of Nations)

The Imperial Government of Persia recognizes as compulsory ipso facto and without special agreement in relation to any other state accepting the same obligation, that is to say on the condition of reciprocity, the jurisdiction of the Permanent Court or International Justice, in accordance with Article 36, paragraph 2, of the Statue of the Court, in any dispute arising after the ratification of the present declaration with regard to situations or facts relating directly or indirectly to the application of treaties or conventions accepted by Persia and subsequent to the ratification of this declaration, with exception of:

a)       Dispute relating to the territorial status of Persia, including those concerning the rights of sovereignty of Persia over its islands and ports;

b)       Disputes in regard to question which, parties have agreed or shall agree to have recourse to some other method of peaceful settlement;

c)       Disputes with regard to questions, which, by international law, fall exclusively within the jurisdiction of Persia.

However, the Imperial Government of Persia reserves the right to require that the proceedings in the Court shall be suspended in respect of any dispute which has been submitted to the council of the League of Nation.

The present declaration is made for a period of six years. At the expiration of that period, it shall continue to bear its full effects until notification is given of its abrogation.

Geneva, October 2nd, 1930

(Signed Hussein Ala

Source of texts: PCII, Ser.D.6.53 (French), Ser.E.7.465 (English Translation).

Date of ratification: September 19, 1932.

Date of abrogation: July 19, 1951, (U.N. Document, Press Release PM/2219).


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