The Revenues of the Iranian Government Stemming from the Petroleum Society Beginning in August of 1941 until 1950

The invasion of Iran of allied troops in August of 1941 was, first of all, intended to preserve the petroleum reserves and to transport forces and equipment towards the Russian front.  The allies equally tried to return the German citizens who lived in Iran, and they also dismissed Réza Chah.

            Regarding the concession of petroleum and on the account of specific wartime conditions, the English government committed itself to annually paying a sum of 4,000,000 pounds to the Iranian government, which lasted until the end of the war.  It is important to note that Iranian petroleum and the informational agents of this country which aided in the profit of England, in Germany, and throughout other countries, were the principle factors in the victory of the allies.

            During the Second World War, the major part of the necessary motor fuel of English and American aerial forces in the Middle and Far East came from the Abadan refinery.  Similarly, a large quantity of motor fuel was sent to the Russian aviation.

            In 1943, with the occupation of Sicily by the allied armies, the maritime route through the Mediterranean was secured and the petroleum products from Iran played an important role until the end of the war.  The needs of the allies increased with respect to Iranian petroleum products and were truly felt as early as the third year of the war so that in 1944, the capacities of the Abadan refinery exceeded 13,000,000 tons in order to reach 17,000,000 tons in 1945 and 19,000,000 tons the following year.

            After World War II, the Iranian petroleum industry experienced much development.  The quantities of extracted petroleum were the following:

            1946 – 19,190,000 tons

            1947 – 20,195,000

            1948 – 24,871,000

            1949 – 26,807,000

            1950 – 31,750,000

            The capacity of the Abadan refinery which was 17,000,000 tons in 1947 two years later rose to 23,250,000 tons and eventually exceeded 23,250,000 tons in 1950.

            The productions of the Abadan refinery went from kerosene to tar.  At the time, this refinery was the largest in the world and it extended (with the exception of land reserved for the lodging and stocking lands) 162 ha.  In 1951, the gigantic apparatus of which the construction required 4 years was started up, producing motor oil.

            The outcome of 1947 provides us with the following numbers:

            -Total net revenue of the Society after deduction of expenses – 34,412,939 pounds

            -Taxes paid to the British government – 15,266,665 pounds

            -Dividends paid to the proprietors of shares – 7,112,484

            -Right of concession of the Iranian government – 7,101,251

            We point out an important difference between the sums paid to the British government and those paid to the Iranian government.

            The outcome of 1950 demonstrates a veritable inequality:

            -Total net revenue of the Society after deduction of expenses – 151,193,449 pounds

            -Portion reserved for the redemptions and unforeseen reparations – 34,195,372

            -Right of concession and taxes paid to the Iranian government – 16,031,735

            -Taxes paid to the British government – 50,706,880

            -In case of approval of the codicil, the sum paid to the Iranian government will be 16,500,000

            -Paid to the account of the general depot – 26,000,000

            Total: 143,433,987

            The rest was paid to the title bearers of shares and a certain sum reported for the following year.  Such an inequality can only originate from colonists, British colonists in particular.