File 523/1912 Pt 1 'Persia: Imperial Bank: mint contract' [‎169r] (333/386)

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-Sir W. Townley to Sir Edward Grey.—(Received May 25, 6'20 p.m.)
Tehran, May 25, 1913.
(No. 214.) (May 25, 7*48 p.m.)
WITH reference to correspondence ending with your telegram No. 110 of 1912
on the subject of a ten-year mint contract concluded between Shuster and the Imperial
Bank of Persia, acting manager of Bank of Persia now informs me that a contract
conferring a monopoly to coin silver upon the Russian Bank is actually before the
Council of Ministers.
Under this contract Russian Bank is granted the sole right to import silver for
coinage at the mint from 14th July next for an indefinite period. That is to say, the
date of termination of contract is not filled in, but the Treasurer-General tells me that
it is intended to run until 21st March, 1915.
Negotiations for this contract have been going on for a long time. Russian
Minister pressed it very hard before his departure without success, and now manager
of the bank and Russian Charge d’Affaires are redoubling their efforts, apparently, as
the Treasurer-General tells me, because the manager, who is about to leave for
St. Petersburgh, hopesjto get promotion if he can arrive with the contract in his pocket.
Acting manager of Imperial Bank of Persia asserts that such a contract would be
a violation of Imperial Bank of Persia’s concession, under which it is clearly necessary
for them to be able to import silver in order to be in a condition to maintain the
bullion reserve exacted under their note of issue contract.
Were it not for strong pressure being exerted in favour of Russian Bank by the
Russian Legation, I should not consider that it was my business to meddle in the
question, but, under the circumstances, I have asked Treasurer-General to defer action
pending the receipt of your instruction.
IA
CO W
30 MAY 1913
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