In the course of frank and friendly discussions on the subject of compensation there has been a meticulous examination of all claims and counterclaims of both sides. As part of a general settlement of oil problems the Persian Government have agreed to pay Anglo-Iranian Oil Company, Ltd. a net amount of compensation totaling £25 million payable over ten years and free of interest. Payment will not begin until January 1, 1957.

The settlement takes into account the value of internal distribution assets, the Kermanshah refinery and Naft-i-Shah oilfields, the disruption of the enterprise of the A.I.O.C. Ltd., and the disruption of Iran’s economy arising out of the failure of the parties to reach a settlement following upon nationalization of the oil industry in 1951.

This agreement, in conjunction with the agreement to be concluded with the consortium, will settle a long-standing dispute, and it is hoped, will inaugurate a new era in Anglo-Persian relations.

TEHRAN. August 5, 1954.