British Diplomatic Oil Crisis: Contemporary Anglo-Saxon Geopolitical Rivalries in the Persian Gulf: Drawing a Lesson? Or Sir Anthony Eden‘s Delusion of Grandeur.

British Diplomatic Oil Crisis: Contemporary Anglo-Saxon Geopolitical Rivalries in the Persian Gulf: Drawing a Lesson? Or Sir Anthony Eden‘s Delusion of Grandeur.

to grant
any discount to particular buyers, or even to accept a
price fixed by the international cartel. The fundamental points of
difference were, the position and powers of the International Bank
in regard to the operation of the industry. The Iranian Government
insisted on Iranian control of the industry. The other points were,
the re-employment of British technicians, and the sale price of the
oil produced.

The
International Bank, by 16th February, made their offers. It was
suggested that the International Bank’s operations were to continue
for two years only. Additionally, the oil was to be sold at the Gulf
of Mexico price of $1.70, less the following discounts: 25% for
compensation, a general discount of between 32 and 35%, and 25% for
the Bank’s operating expenses. The Managing Director was to be
non-British, and the other personnel non-British as far as possible.
Finally, Iran would get only 15-18%.

The
Iranian Prime Minister was not happy at the new initiative of
the International Bank. Musaddiq was on the point of breaking off
the talks. However, due the intervention of the Iranian Senate the
bank delegation decided to delay their departure. Consequently, an
Iranian sub-committee put forward to the International Bank’s
mission new proposals. The mission left on 20th January 1952 for
London, to discuss the Iranian proposals with the British officials.

Hector
Prudhomme, director of the International Bank’s loan
department, returned to Teheran, while the Vice-President of the
Bank, Robert Garner, returned to Washington. Hector Prudhomme not
only took a rejection of the Iranian proposals from London, but he
also carried with him a rewording of the Bank’s old proposals. The
price of $1.75 was now accepted, but there was to be 33% general
discount, amounting to 58 cents, as well as 30 cents for expenses
and 37 cents compensation to the Anglo-Iranian Oil Company, leaving
a balance of 53 cents, or about 30% for the Iranian Government. The
Iranians did not have any objection to the last two discounts, but
did not agree to more than 20% general

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