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PROTOCOL

On the signature this day of the Convention between His Britannic Majesty and His Majesty the King of Iraq, respectively, of the one part, and the President of the United States of America of the other part, the undersigned Plenipotentiaries, duly authorised thereto, have agreed as follows:

(1.) It is understood by the High Contracting Parties that the
term "exercise of industries" as employed in article XI of the
Anglo-Iraq Treaty of Alliance signed the 10th October, 1922,
covers the granting and operation of concessions.

(2.) With reference to article 4 of the Convention signed this
day, it is understood by the High Contracting Parties that
the Iraq Government will not interfere in matters concern-
ing the curriculum, such as the time-table, discipline and
purely internal administration in schools established or main-
tained by nationals of the United States of America in Iraq.
(3.) It is understood that upon the entry into force of the Con-
vention signed this day and during the period of the special
relations existing between His Britannic Majesty and His
Majesty the King of Iraq, defined in article I of the said
Convention, there will be a suspension of the capitulatory
régime in Iraq so far as the rights of the United States and
its nationals are concerned, and that such rights will be
exercised in conformity with the decision of the Council of
the League of Nations dated the 27th September, 1924.
(4.) It is understood that article 3 of the Convention signed this
day does not prohibit the Iraq Government from expropri-
ating American property for public purposes under normal
expropriation laws of general application, and subject to the
previous provision for just and reasonable compensation.

The present Protocol shall be deemed an integral part of the Convention signed this day and shall be ratified at the same time as that Convention.

IN WITNESS WHEREOF, the respective Plenipotentiaries have signed the present Protocol and have affixed thereto their seals.

DONE in triplicate in English and Arabic, of which, in case of divergence, the English text shall prevail, at London, this 9th day of January, 1930.

[SEAL]

CHARLES G. DAWES

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Treaty Series No. 835

The British Secretary of State for Foreign Affairs (Henderson) to the American Ambassador in Great Britain (Dawes)

[LONDON,] 9 January, 1930.

YOUR EXCELLENCY, On the signature this day of the Convention between His Britannic Majesty and His Majesty the King of Iraq respectively of the one part, and the President of the United States of America of the other part, I have the honour to inform Your Excellency that His Majesty's Government in the United Kingdom of Great Britain and Northern Ireland agree to furnish to the Government of the United States a duplicate of the Annual Report to be made in accordance with the terms of the Decision of the Council of the League of Nations on the 27th day of September 1924.

I have [etc.]

ARTHUR HENDERSON

Treaty Series No. 835

The American Ambassador in Great Britain (Dawes) to the British Secretary of State for Foreign Affairs (Henderson)

No. 372 LONDON, January 9, 1930. SIR: On the signature this day of the Convention between the President of the United States of America of the one part, and His Britannic Majesty and His Majesty the King of Iraq of the other part, I have the honor to take note of your declaration that His Majesty's Government in the United Kingdom of Great Britain and Northern Ireland agree to furnish the United States Government with a duplicate of the Annual Report to be made in accordance with the terms of the Decision of the Council of the League of Nations on the 27th day of September, 1924.

I have [etc.]

Treaty Series No. 835

CHARLES G. DAWES

The Iraq Minister in Great Britain (Ja'far El Askeri) to the American Ambassador in Great Britain (Dawes)

[LONDON,] January 9, 1930. YOUR EXCELLENCY, I have the honour to bring to your notice a point connected with Article 2 of the Protocol attached to the Tripartite Convention between the United States of America, The United Kingdom and Iraq. Article 2 of the Protocol provides that the Government of Iraq shall not interfere in matters concerning the curriculum, such as the time-tables, discipline and purely internal administration in schools established or maintained by nationals of the United

States of America in Iraq. The Iraq Government interpret this Article as not preventing the enforcement on the said schools of Article 28 of the Public Instruction Law of 1929 the translation of which runs:

It is obligatory to teach the Arabic language and the history and geography of Iraq and the history of the Arabs in accordance with the programme of the Ministry of Education in all non-technical private schools both primary and secondary. The hours devoted to the Arabic language must be not less than five hours a week in primary classes and three hours a week in secondary classes.

I have therefore been instructed by my Government to inform Your Excellency that the Iraq Government consider that Article 2 of the said Protocol shall not override the provisions of Article 28 of the above mentioned Law.

I have [etc.]

JA'FAR EL ASKERI

Treaty Series No. 835

The American Ambassador in Great Britain (Dawes) to the Iraq Minister in Great Britain (Ja'far El Askeri)

LONDON, January 9, 1930.

YOUR EXCELLENCY:-I have the honor to acknowledge the receipt of Your Excellency's note of today's date, which reads as follows: "I have the honour to bring to your notice a point connected with Article 2 of the Protocol attached to the Tripartite Convention between the United States of America, the United Kingdom and Iraq. Article 2 of the Protocol provides that the Government of Iraq shall not interfere in matters concerning the curriculum, such as the time-tables, discipline and purely internal administration in schools established or maintained by nationals of the United States of America in Iraq. The Iraq Government interpret this Article as not preventing the enforcement on the said schools of Article 28 of the Public Instruction Law of 1929, the translation of which

runs:

It is obligatory to teach the Arabic language and the history and geography of Iraq and the history of the Arabs in accordance with the programme of the Ministry of Education in all non-technical private schools, both primary and secondary. The hours devoted to the Arabic language must be not less than five hours a week in primary classes and three hours a week in secondary classes.

"I have therefore been instructed by my Government to inform Your Excellency that the Iraq Government consider that Article 2 of the said Protocol shall not override the provisions of Article 28 of the above mentioned Law."

In taking note of this communication I avail myself of this opportunity to renew to Your Excellency the assurance of my high consideration.

I have [etc.]

CHARLES G. DAWES

GOOD OFFICES TO AMERICAN FIRMS INTERESTED IN ENTERING THE IRAQ OIL FIELDS 36

890g.6363 Getty Oil Company, George F./6

The Acting Secretary of State to the Consul at Baghdad (Sloan)

WASHINGTON, March 7, 1930. SIR: The Department has received and read with interest your despatches No. 11 of January 25 and Nos. 16 and 19 of February 2, 1930, concerning developments in the petroleum situation in Iraq, with especial reference to the recent visit of Mr. H. M. Macomber on behalf of George F. Getty, Incorporated.

37

In order that you may understand the attitude of this Government with reference to the entrance of American petroleum companies into the Iraq field, there are set forth below certain of the considerations that the Department has had in mind in connection with this question. As you are aware, extensive correspondence on this subject was exchanged between the Department and the British Foreign Office during 1920 and 1921.38 The viewpoint of the United States with respect to the economic development of Iraq and other similar territories was set forth originally in a note handed to the British Secretary of State for Foreign Affairs by the American Ambassador in London on May 12, 1920.39 In that note were recited certain propositions which embodied or illustrated the principles which the United States Government desired to see applied in certain of the regions detached from the former Ottoman Empire. Among these propositions were the following:

(1) "That there be guaranteed to the nationals or subjects of all nations treatment equal in law and in fact, to that accorded nationals or subjects of the mandatory power with respect to taxation or other matters affecting residence, business profession, concessions, freedom of transit for persons and goods, freedom of communication, trade, navigation, commerce, industrial property, and other economic rights or commercial activities."

(2) "That no exclusive economic concessions covering the whole of any mandated region or sufficiently large to be virtually exclusive shall be granted, and that no monopolistic concessions relating to any commodity or to any economic privilege subsidiary and essential to the production, development, or exploitation of such commodity shall be granted."

(3) "That reasonable provision shall be made for publicity of applications for concessions and of governmental acts or regulations relating to the economic resources of the mandated territories; and that, in general, regulations or legislation regarding the granting of

36 For previous correspondence relating to the open-door principle in Iraq, see Foreign Relations, 1927, vol. II, pp. 816 ff.

37 None printed.

38 See Foreign Relations, 1920, vol. 1, pp. 649 ff.; ibid., 1921, vol. 1, pp. 80 ff. * Ibid., 1920, vol. 11, p. 651.

concessions relating to exploring or exploiting economic resources, or regarding other privileges in connection with these, shall not have the effect of placing American citizens or companies, or those of other nations or companies controlled by American citizens or nationals of other countries, at a disadvantage compared with the nationals or companies of the mandate nation, or companies controlled by nationals of the mandate nation or others."

In brief, this Government desired to see applied the principles of the Open Door and of equality of commercial opportunity.

These principles, so far as the exploitation of petroleum resources in Iraq is concerned, are understood to have been provided for in the Agreement between the Iraq Government and the Iraq (then Turkish) Petroleum Company, signed at Baghdad on March 14, 1925.40 One of the clauses of this Agreement provides that the Iraq Government shall offer plots "for competition . . . between all responsible corporations, firms and individuals, without distinction of nationality". It is the Department's understanding that under this provision American companies or individuals are able to bid for petroleum concessions in certain areas of the Iraq field. Moreover, an American group of petroleum companies has already obtained an interest in portions of the Iraq field through its holdings in the Iraq Petroleum Company.

The Department has, however, never supported any particular American company or group of companies in Iraq in preference to or in exclusion of any other American companies. The interest of the Department is to maintain the Open Door and suitable opportunity for American enterprise in Iraq. It is left to the American companies and individuals who may be interested to take advantage of the opportunities that are offered.

You will of course bear in mind that you should not support any particular American group or company as against another. As among such companies the Department desires you to maintain a strictly impartial attitude. At the same time you should be diligent to report any discrimination, or attempted discrimination, against American interests, including, of course, those of the Ameri-· can group which holds shares in the Iraq Petroleum Company.

You may, of course, extend your good offices to any bona fide American company which seeks your assistance in entering the Iraq field, under the appropriate provisions of the Agreement between the Iraq Government and the Iraq Petroleum Company. Such assistance should generally be limited to placing the inquirer in

40 Turkish Petroleum Company, Limited, Convention with the Government of 'Iraq, made the 14th day of March, 1925 ([London,] Blundell, Taylor & Co. [1925]).

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