The terms of the Government agreement with the Anglo- Persian
Oil Company, concluded on May 20th, are given in a Blue Book issued on Tuesday. The Government are to subscribe for £2,000,000 in ordinary and £1,000 in preference shares, and £199,000 in debentures, bringing the aggregate capital in shares and debentures to £4,799,000. The Govern- ment will hold a preponderating interest in the share capital, while, under an arrangement still requiring confirmation by the shareholders, its two ex-officio directors will have a power of veto on all decisions taken by the board. The price at which the Admiralty will obtain the oil itself is not disclosed, the supply contract being regarded "in the public interests as confidential," but it is stated that provision is made for the supply for a term of years, on a favourable scale of prices, of a reasonable proportion of the total estimated requirements of the Admiralty on the present basis of policy for oil consump- tion, and with doe allowance for expansion.
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