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Worms & Co.
Branches in Egypt: Cairo, Alexandria, Port Tewfik (Suez)

Port Said (Eypt), 24th november 1918
MM. Worms & Cie - Paris

Dear Sirs,
We beg to acknowledge receipt of your favours of the 9th instant (two), one of them enclosing certain correspondence re the late Captain Mulock for which we thank you.
Beyrouth. In regard to this subject, the only people who can be meant by the term "Associated Companies" is the Royal Dutch Petroleum Co. and the Companies (subsidiary) such as the Bataafsche Petroleum Maatshappij which stand in the same relation towards the Royal Dutch as the Anglo-Saxon and Asiatic do towards the "Shell" company. Although the Bataafsche work for the "Shell" Co. and the Asiatic for the Royal Dutch and the whole of the interests of the Combine are pooled, yet each branch of the Combine seems to have its separate spheres of influence. We need not try and guess the reasons, financial or political or both, for this state of affairs but accepting the fact, endeavour to see how we should be affected. We were not previously aware that the Combine operated at all in Turkish territory, and possibly even they did not, and that it is merely that in the future Syria is to be a Royal Dutch sphere, while Palestine where we are already setting up connections for the Asiatic is to be a "Shell" sphere. Our relations with the Bataafsche are very scanty but of course the recommendation of the Asiatic should be all powerful with them and we quite believe the Asiatic would give that recommendation. The doubtful points are whether the Royal Dutch were formerly, before the war, operating in Beyrouth, in which case they might want to continue with their present connection, or whether, in the event of it being a case of their setting up in Syria, they would not want to send out their own staff and therefore not require the services of any agent. We have given precedence to the above aspect of the matter, i.e. the possibility of the Royal Dutch dealing with Syria, because it seems to us that economically Russia or Roumania will have the "pull" in Syria over Egypt. It would cost less to lay down cargoes of petroleum products from Roumania than from Suez, simply because of the handicap which the Suez canal dues impose on all trading of the Anglo-Egyptian Oilfields westward, except through the railway backdoors into Egypt on the one hand and Palestine on the other. Palestine, because the consumption is small and the rail distances not very great from Suez. Railing from Suez into Syria will be feasible in all probability also, but the quantities involved are much bigger and the distance, of course, is increased. Over a longish distance sea transport will always beat rail transport, economically. Geographical and economic considerations might be set aside by the combine if the Egyptian production grew to such an extent as to make the provision of extra markets imperative. At present the position is that Egypt can absorb a great deal more than the Egyptian fields are yet producing - in kerosene, for example, about three times as much.
On a careful review of all the circumstances, we think it will be worth your while to accept the Asiatic agency, if they finally proffer it to you, provided you are prepared to face the possible disappointment at some later date, of their closing down and their sister company not being able or not wishing to avail of your services. we should imagine, for one thing, that it will be some considerable time before the Roumanian fields recover sufficiently to have much, if any, exportable surplus. As regards details such as site for an installation at Beyrouth, M. Golubzow will be asked to study the matter further on the spot, but it is already abundantly clear to us from a study of the plan of the port, that no bulk oil installation is possible within its confines.
A precedent, however, is ready to hand, because some years ago the standard oil Company put up a small bulk installation at Beyrouth and we are credibly informed that their installation is at the month of the small stream where the Gas works are situate. There is no anchorage for a tank steamer to connect with this spot as yet. That would have to wait till the port was enlarged, but we understand the Standard Oil used to send tankers to anchor in the Roads and put into tank barges which then re-transferred into shore tanks. The process is cumbrous and expensive and we doubt if the Standard oil ever made a success of their venture, the greater part of the trade doubtless being done in packed cargoes, especially as it is doubtful if the Railways will have any tank wagons to transport bulk oil into the interior, where the larger share of the business is to be done. If the Asiatic started, therefore, they could very well start with packed oil and the packing could easily and conveniently be done in their Egyptian installations, the capacity of which is far in excess of the needs of Egypt itself, since Egypt has become more and more converted to the bulk oil trade and since the war to an overwhelming extent. The thing to do would be to choose a good site for the reception of a packed oil cargo, but one which could later on serve equally well for a bulk oil installation. It seems there should be no difficulty about this. The Authorities would doubtless insist on all the oil depots adjoining one another and we should merely choose a plot close to the Vacuum Oil Co. The desiderata for a petroleum site are simple and well defined, namely sea communications on the one hand and rail communications on the other.
With regard to making an immediate start, we quite think that in a short time the Authorities will realise the necessity for supplies of petroleum being introduced, and they will naturally turn to us, since we are the sole suppliers in the Wear East both for the French and British forces and are well known as such. Anyhow our Beyrouth agent can give the reminder if necessary. Our Beyrouth agent can also, without doubt, very soon persuade the Authorities that such a delicate article as petroleum, in its handling and storage, can with the greatest possible advantage be entrusted to experts, i.e. to ourselves. The rest will then be plain sailing we think as already the demands of the Forces, which at the time of their greatest intensity, i.e. to the tune of some 12.000 tons a month taxed but without breaking our packing capacity, have fallen off very greatly, leaving us the necessary margin to deal with such extra requirements as Syria. For the immediate present, however, as you know, Syria is a closed territory and private enterprise is barred. It will not be necessary to provide storage immediately at Beyrouth, as there exists a very large municipal store, where most of the petroleum products were kept before the war, all the importers making use of it, though some of them were beginning to strike out for themselves and have their own storage, e.g. the Standard Oil Co. We might mention that the officer in Beyrouth who will doubtless be charged with the revictualling in kerosene among other things is precisely the one whom we convinced long ago during the war that he could not possibly do better than leave the transport and handling entirely in our hands, advice which stood him in such good stead that he was able to show shortage on outturn of 8% while his British colleagues who insisted on doing the handling themselves had to confess, ultimately, to shortages of up to 15%.
For the present (and this will he so for some time yet) we have all the cards in our hands, that is we, and no one else within reach, have the kerosene and the benzine, and the means of packing it and the receptacles to put it into, and the necessary experience in handling it. All that is required is the shipping, which of course it is for the Authorities to provide.
War Gratuity. This came as a most pleasant surprise and everyone is immensely gratified and heartened by the generosity of yourselves and the Asiatic. All without exception have asked us to convey to you their very grateful thanks which we do with much pleasure and at the same time the subscribers tender their own in no less measure. The confirmation so far as the Asiatic are concerned came in a telegram addressed to Mr. Howe and dated 18th November, copy of which we attach. We enclose also copy of the telegram which we sent to our Branch offices as soon as this confirmation came through, and believe we have quite grasped the scope of your gift. Its application so far as employees on monthly salary is concerned is indeed perfectly clear.
We are considering its extension to certain employees not on the monthly sheets, because there are some cases, both with our own people and those of the Asiatic where the gratuity has been well deserved, e.g. where natives have stuck to their employ with us and rendered us good service at times when labour has been exceedingly scarce and the temptation to leave us for higher pay obtainable elsewhere must have been considerable. We shall, of course, render a detailed statement of all these gratuities.
We are, dear sirs,
Yours faithfully,

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