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New Agreement Sets
Oil Wells Producing
WASHINGTON, August 5 (A.A.P.) — Persia and an
oil consortium today announced an agreement under
which Persia would again become a major oil producer.
In a joint statement
released in Washing
ton, it was announced
that large volumes of
Persian oil would be
gin to flow from' the
great oil . ports, ; at
Abadan and Bandar-
mashur when the
boards of directors of
the eight oil companies
of the consortium and
Persia had given the
agreement final ap
proval in about two
months.
" This agreement- marked
the end of a long series of
arguments and negotia
tions which followed Per
sia's seizure and nation
alisation of the vast oil
ramifications of the
Anglo-Iranian Oil Co. in
Persia in 1951.
The joint statement said
that an essential part of
the consortium . agree
ment was settlement of
the question of compensa
tion to the Anglo-Iranian
Oil Co.
A separate announce
ment was made about this
compensation- in Teheran
yesterday under which
A'.I.O.C. would receive
£84 million dol. (about
£37 million).
The joint announce
ment said that prepara
tions for resumption of
oil production on a big
scale would begin at once.
Two operating companies
would be formed to ope
rate- the oil fields and re
finery. These companies
would be organised by the
consortium, one dealing
primarily with explora
tion and production and
the other with refining.
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