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pipeline to the refinery at Abadan. Finally there is the commitment to expand production up to a million barrels a day. If there’s anything more the Shah wants us to do, I can’t think what it is, but I’m naturally anxious to hear.’
    â€˜His Imperial Majesty has made a gesture which will save the West from bankruptcy and revolution,’ Khorvan said coldly. ‘The price of oil is causing such massive inflation that a total breakdown is inevitable. Everyone knows that. The United States would like to declare war on the Arab States but she cannot because they are under Soviet protection. Governments are plotting and negotiating to try and save themselves; they cannot use the Israelis as a pawn because the Arab forces are equally well equipped, as the last conflict proved. So His Imperial Majesty decides to save you. Once it is realized that Iran is letting some of its oil go at lower prices than is agreed between the OPEC countries, the others will have to reduce their prices in turn.’
    â€˜Without any disrespect,’ Logan said, ‘This is not just a philanthropic gesture. The situation you describe is only too true, Minister. We are on the edge of disaster in the West. But if Europe suffers a complete economic breakdown the result will be chaos followed by a Communist revolution. Iran could not hope to survive it unscathed. The Shah knows this. He is certainly saving us by breaking the price formula, but he’s also protecting himself.’
    There was silence after he had spoken. Khorvan sipped his coffee. He didn’t hide his resentment and James tried to warn Logan not to say any more. But Logan ignored him. He leaned back in his chair and he seemed perfectly relaxed.
    â€˜I take it you feel our investment is insufficient,’ he said. ‘What else do you suggest?’
    â€˜You talk of building a pipeline to Abadan,’ Khorvan said. ‘The distance from Imshan to the refinery is too great. For the quantity of oil that Imshan will produce, we want a separate refinery. Built by you in exchange for the discount on your oil price.’
    Logan looked at James. He turned back to Khorvan.
    â€˜No mention of a separate refinery was made to Mr Kelly.’
    â€˜No,’ the Minister agreed, ‘but it was to me. His Imperial Majesty is determined that a refinery should be built at Bandar Muqam, near Imshan on the coast. And that whoever goes into partnership with the National Oil Company should finance it. He considers that is a fair contribution.’
    The suggestion had come from Khorvan himself. He knew the Shah’s determination to squeeze the last dollar out of Western investors in Iran. The refinery investment would be a major step in the long-term industrialization of the country. If Imperial Oil wanted to develop Imshan and to break the oil price to save the West, then it was up to them to find the money. Logan lit a cigarette.
    â€˜The cost of a refinery big enough to cope with even half of Imshan’s eventual production would be in the region of another three hundred million,’ he said. ‘An investment of three hundred million, or possibly more because of inflation, would wipe out our profit margins for the next ten years.’
    Khorvan said nothing. He made an arch with his fingers and looked at the tips of them.
    â€˜I’m afraid it’s not possible,’ Logan said. ‘No company in the world would agree to such a deal. My board wouldn’t sanction it even if I recommended it. Surely you can appreciate that.’
    â€˜I do,’ Khorvan said. ‘But unfortunately it is not my problem, Mr Field. I am not negotiating for our oil; you are. If you really cannot see your way to building the refinery, then the deal must be offered to someone else.’
    â€˜That’s perfectly fair,’ Logan said. ‘But exactly who is in a position to undertake this? Don’t tell me Exxon, because I know as well as you do