Some notes on Iran and the Iranian licensees.

Iran is an inhospitable country consisting of many mountain ranges, two large deserts and a lack of deep soil suitable for wide agriculture in many areas which limits the growth of crops. Rivers only flow when precipitation is heaviest and much of this comes from mountains facing the Caspian Sea, the Persian Gulf and the Gulf of Oman. There are few lakes and these tend to dry up in the hot summer weather.

The country is large covering 628,000 (UK50,300

The main navigable river is the river Karim flowing into the Shatt Al-Arab.

Climate varies considerably dependant on the part of the country and it extends from being extremely hot and humid in the south while the central plateaux have cold winters and baking summers but along the Caspian Sea area a semi-tropical climate exists. Temperatures can range from 51 degrees celcius to minus 37 degrees in the north to more moderate temperatures towards the south.

Iran has an abundance of gas and crude oil which has in the past and continues today to earn it a great deal of wealth. It is of course used to manufacture a wide variety of by-products.

About half of the population, which at the time of the license Agreement stood at35 million, speak Farsi, while the remainder are split into ethnic groups, speaking their own languages, Turks, Kurds, and other Arabic populations which normally follow the Moslem religion.

The principal cities in Iran are Teheran which has a population of about 7 million people, Mashhad, Esfahan, Tabriz and Qom which is a shrine city.

At the time of the Agreement Iran was ruled by the Shah but, in 1979, his rule was superseded by a new constitution which established an Islamic Republic. The country became a theocracy.

The President is elected for a 4 year term and he appoints a Cabinet.

There are 270 members in the Majlis appointed for a 4 year term by popular election with a minor number of seats for other religions.

The country is divided into 25 provinces and these are separated into 195 counties which, in turn, are split up into 500 districts. Local officials are appointed by the central Government but municipalities appoint their own mayors. No political parties are allowed.

Iran is a member of the UN, OPEC and the Organisation of the Islamic Conference.

While all of these negotiations were going on I can never remember meeting Mr. Oskoui although we did meet when I visited Teheran in the Spring of 1977.

During this meeting all kinds of excuses were given to me for not taking me to visit their factory in Arak which was supposed to be making building chemicals and bitumen emulsions and solutions. I do not know whether Harry Venton was more fortunate during his visit.

The language barrier was obviously a great stumbling block which meant that unless Evode was prepared to go to the lengths of very expensive translations Adinco could submit any paperwork that they chose. I firmly believe that Evode did very badly from this situation and both Iranian Government and Adinco conspired to avoid submitting to Evode what was due to them.

October 2007.