GRANT OF PETROLEUM RIGHTS TO THE ANGLO-AMERICAN OIL COMPANY, LIMITED, UNDER THE BAGHDASSARIAN CONCESSION IN WESTERN HARRAR 884.6363/2 The Consul General at London (Skinner) to the Secretary of State No. 9716 LONDON, June 8, 1920. SIR: I have the honor to refer to my telegram of June 7, 1920," stating briefly that an exploring party representing what is to all intents and purposes, the Standard Oil Company, would reach Aden within the next few days en route to Abyssinia, and suggesting that the American Consul at Aden who is understood to have Abyssinia more or less under his observation, be instructed to accompany the party, in order that the real solidity and importance of the undertaking might be understood, or more particularly in order that our fellow citizens might have some American official representative on the spot in the event of any discussions arising between them and the Abyssinian Government. For the further information of the Department, I am enclosing herewith a copy of a letter dated June 7, 1920, addressed to me by Mr. Charles E. Dudley of the Anglo-American Oil Company, Limited. The Anglo-American Oil Company, as the Department no doubt knows, is a British Company practically owned by the Standard Oil Company. In this letter Mr. Dudley furnishes all useful particulars with regard to the Concession in Abyssinia and present plans for working it. The Concession is dated August 26th 1915 and one of its conditions is that work must be commenced before August 26th 1920. As the Concession was only brought to the attention of American Oil interests a few weeks ago, it was indispensable that practical steps be taken immediately, and therefore a steamer has been despatched to Jibuti with oil-drilling machinery on board and an exploring party have already proceeded on a passenger steamer as stated above. I look upon the enterprise as the most important commercial undertaking ever organised for business purposes in Abyssinia, as it is backed by an abundance of capital and represents no political interest of any character. It seems to me, therefore, very important that during the initial stages of the exploration, we should have someone in Abyssinia to whom our fellow citizens can appeal in certain circumstances and while the presence of the American Consul at Aden would answer all immediate requirements, I suggest that the time has come when we should be permanently represented at Addis-Ababa. 'Not printed. As the Department knows, for many years we have had a very large trade in Abyssinia in American sheeting, indeed the largest trade of the country, and we are importers of the few raw products which Abyssinia has to sell. The American Oil interests now under consideration have taken up a Concession for a comparatively small area, but it is proposed to explore the country thoroughly, and if oil is found in sufficiently large quantities, to lay a pipe line to the coast and to make other arrangements for handling the business upon a comprehensive scale. I am very hopeful that under these circumstances the Department will be inclined to take some action in the sense of the foregoing suggestions. I have [etc.] ROBERT P. SKINNER [Enclosure] Mr. Charles E. Dudley of the Anglo-American Oil Company, Limited, to the American Consul General at London (Skinner) LONDON, June 7, 1920. DEAR MR. SKINNER: Following our conversation of to-day I beg to advise you of the following details of the Expedition now on its way to Abyssinia, in connection with a Petroleum Concession in that country. Messrs. H. H. Topakyan formerly Persian Consul General in N. York, and Hagob Baghdassarian, brother-in-law of the present Empress of Abyssinia and formerly Controller of the Mint in Abyssinia, are holders of a Mineral Concession including Petroleum, direct from the Abyssinian Government in the Province of Harrar, Abyssinia. This Concession is dated August 26th 1915 and runs for 50 years, but a special condition is that work must be commenced within a period of 5 years, that is before August 26th 1920. Owing to the War the Concession holders have been unable to commence work and they approached the undersigned and associates with a view of obtaining assistance to not only validate the Concession by preliminary work, but also to actively develop same provided the conditions justify. While the Concession covers all mineral rights in the Province of Harrar, the undersigned has only obtained the petroleum rights. The terms are that work is to begin as soon as possible, but not later than August 26th 1920. The Abyssinian Government is to receive 8% in value of any results obtained and the remainder is to be divided between the two Concession holders above and the undersigned, in the proportion of 25% and 75%. As a consideration, the undersigned and associates have agreed to spend not less than £25,000 in the expense of an expedition to render the Concession. valid, by endeavoring to develop the petroleum deposits if any. A small expedition therefore, left Marseilles on the 5th inst. for Addis-Ababa via Jibuti. On arrival their first object will be to confirm the Concession rights with the Abyssinian Government and to announce their intention of immediately proceeding to work same. Following them, and leaving here not later than Thursday or Friday of this week, will be a competent oil-well driller and assistant, together with the necessary machinery for a preliminary test well. This apparatus and the personnel will go direct by steamer to Jibuti and from there to the interior. The first work will probably be done in the vicinity of Adde-Gala on the railway at a point about 9 miles from the line, and where petroleum indications have been reported. A prominent member of the expedition is Dr. Barnum Brown of the American Museum of Natural History in New York, a scientist and geologist who has conducted several expeditions in the Western States, Cuba and South America for the American Institute and the recovery of fossil specimens of great value. Dr. Brown has written in the Geographic Magazine at some length on his previous expeditions. His work with this expedition will be to investigate the geological formation of the country comprised in the above Concession with a view to advising as to further development, if in his opinion, the indications will justify. I am this morning in receipt of a letter from Hagob Baghdassarian from Marseilles urging strongly that, in view of the American character of the expedition, that the American Consul at Aden be requested to accompany the members of the expedition to Addis-Ababa and give them what official assistance he can. If this can be arranged it will be of great service, and should only be the forerunner of the appointment of a permanent representative of the American Consular Service at Addis-Ababa. In this connection, and in order that time might be saved, I would strongly recommend that Major S. S. Rooney, an American citizen and late of the U. S. Army, who accompanies Dr. Barnum Brown, be at least temporarily appointed American Consular representative at Addis-Ababa until a successor can be appointed and reach the country. With the above facts before you, I trust that you will be able to communicate with the Department in Washington in such a manner as will ensure the expedition being supported, as I feel that the interests involved are to a certain extent, national. Thanking you [etc.] CHAS. E. DUDLEY 123S0.8/62: Telegram The Acting Secretary of State to the Consul at Aden (Southard) WASHINGTON, July 3, 1920—1 p.m. Referring to Department's June 11th, 6 p.m. Vice Consul Townsend has been ordered proceed Aden from Saloniki to take charge office temporarily. Upon his arrival you may proceed Abyssinia for visit. You should not proceed with the Anglo-American Oil party or do anything which would give them any appearance of being an official organization or having official support other than that which would be naturally extended to any American doing business in foreign country. However you will, of course, render them every assistance practicable. ADEE 844.6363/13 The Consul at Aden (Southard) to the Secretary of State No. 409 ADEN, September 6, 1920. [Received October 6.] SIR: I have the honor to refer to this Consulate's despatch No. 405 of July 29, 1920, and preceding despatches, on the above subject, and to submit the following additional information which was obtained during a visit just made by the undersigned to Abyssinia under authority of the Department's telegraphic instruction of July 3, 1:00 P.M., 1920. The information given in this Consulate's despatches Nos. 391 and 400, of June 21 and July 19, 1920, respectively, relative to the H. M. Baghdassarian concession, appears to be generally correct after investigation on the ground. It has further been learned, however, that H. M. Baghdassarian, who is an Armenian resident in Abyssinia, obtained his mineral concession for the whole of Harrar province at a time about five years ago when the Prime Minister at Adis Abeba was a prominent Abyssinian chief known as Haile Giorgis. Lij Yasu was then the heir to the throne and nominal ruler of the country. Haile Giorgis issued the Baghdassarian concession and it appears to bear only his seal and not that of Lij Yasu. Upon the deposition of Lij Yasu in 1916 Haile Giorgis was thrown into chains and is to this day a political prisoner at Harrar, the capital of Harrar province. When Ras Tafari became Prince Regent and actual ruler of the country he repudiated many of the acts of the ex-Prime Minister Haile Giorgis. Other acts, such as certain concessions, were permitted to stand for the time being. Baghdassarian knew that his concession might be considered invalid as it lacked the seal of the then actual ruler of the country. The Armenian has a certain amount of influence, however, with Ras Tafari and his concession was permitted to stand until the current year when Tafari found that the existence of this old concession placed him in a difficult position as he was being very strongly pressed to issue to the Abyssinian Corporation, Limited, a concession covering Harrar province. The Corporation had first negotiated with Baghdassarian, as has been referred to in previous despatches, but no agreement had been reached although it has since been learned that Ras Tafari informed Baghdassarian that it was his desire that an arrangement be made with the Corporation. Although Baghdassarian knew that the validity of his concession was questionable and that its continued existence depended more upon the goodwill of Ras Tafari than upon any legal right he continued to attempt to sell all or a part of it. He also knew that the Ras, as the result of strong pressure brought to bear by the British Legation at Adis Abeba, would approve and legalize any arrangement made with the Abyssinian Corporation in connection with his presumably invalid concession. He was, however, unable to make a satisfactory agreement with the resident manager of the Corporation and decided to take his concession to London. Ras Tafari knew of this and secured from Baghdassarian a promise that he would reopen negotiations with the London office of the Corporation... So far as can be judged from conflicting stories of what happened in London Baghdassarian did not approach the Abyssinian Corporation representatives there but, with the connivance of one H. H. Topakyan, who is referred to in this Consulate's despatch No. 392 of June 22, 1920, impressed the Anglo-American Oil Company to the extent that that company entered into an agreement with him for the exploitation of his Harrar concession. Baghdassarian must have known that Ras Tafari would be displeased that he had not carried out the original understanding relative to negotiating first with the London office of the Corporation, and would probably repudiate the concession as invalid on the ground that it had only the seal of the ex-Prime Minister Haile Giorgis. . . The British Legation and the Corporation officials evidently had advance notice of what they considered Baghdassarian's intention ... and in April of the current year. . . [obtained] a new concession in their favor which would invalidate the original Baghdassarian concession. The Ras . . . issued a concession to the Corpora 8 Not printed. |