'File 26/94 (F 26) Mohammerah; Shaikh Khazal's offer re: building of Ahwaz Consulate' [‎99v] (212/292)

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(a:) Rent to be nssessed at 6 per cent, instead of 8 per cent, and to be
withheld by Government until the expenses of erection are
wiped off.
(y) In this case the Sheikh to have the option of reTising the terms of
the lease after 20 years instead of 25 as in Alternative I.
(z) In view of this reduction in the rent percentage from 8 per cent, to
6 per cent, the Government of India to lend Sheikh Khazal, as
an entirely independent transaction, a sum of two lakhs One lakh is equal to one hundred thousand rupees of
rupees Indian silver coin also widely used in the Persian Gulf. at 5 per cent per annum on the security of the title deeds
of property worth that amount belonging to the Sheikh in
Turkish territory. The loan to be repayable within 10 years.
With reference to these title deeds I may mention that Mr. McDouall
informed me confidentially that similar deeds were some years
ago secretly deposited with one of Messrs. Lynch's Agents as
security for a loan of £5,000 to the Sheikh. The loan was duly
repaid and the deeds returned, but in the case of the deposit of
such documents with Government as security, the question of
the validity of the documents and the transaction, vis a vis the
Turkish Government would be a pregnant one.
I gather that the Sheikh is not in actual need of this loan for any
special purpose, but makes the proposal as a business transaction.
*If from a similar point of view the Government of India favour
this alternative scheme to that first mentioned, I am inclined
to think that the loan of two lakhs One lakh is equal to one hundred thousand rupees to Sheikh Kbazal at 5 per
cent, on Ms own bond may be regarded as reasonably safe
investment in itself and that the Government of India will
probably prefer not to handle the Turkish title deeds, relying
upon their general line of policy in regard to the Ruler of
Mohammerah to assure the safety of their investment.
6. If either of the two broad proposals formulated above commend them
selves for acceptance and the fact is communicated to me by telegram, a
detailed agreement might be drafted and submitted for approval, unless the
Government of India prefer, as they possibly will, to communicate their reply
to Sheikh Khazal's proposal accompanied by a draft agreement drawn up in
the Toreign Department in terms which they consider suitable.
No. 654, dated the 25th November 1906.
From— C aptain D. L. R. L oiiimer ; I.A., His Britannic Majesty's Vice-Consul for
Arabistan, Ahwaz,
To—M ajor P. Z. Cox, C .I .E., Political Resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , Bushire.
I have the honour to refer to your No. 1319, dated 12th June 1906,
enclosing correspondence dealing with the subject of the arrangement of terms
with the Sheikh of Mohammerah for the building of a house for the Vice-Con
sulate here.
2. On the 20th Haji Rais called on me and showed me much curiosity on
the subject which I showed no great eagerness to gratify, as it was obvious
from his tone that he was trying to establish his indispensability as the medium
of negociations.
When I said that I hop^d to visit the Sheikh a couple of days later when
we could all three discuss the matter togetlier, the Rais replied that if I let
him know our terms, he would be able to work in our interests on the Sheikh
before I met him. Afterwards he recounted at length how he had served
Messrs. Lynch Brothers in a similar situation for a sum of three hundred
tomans 10,000 Persian dinars, or a gold coin of that value. verbally promised but eventually not paid.
He then spoke of the contracts which we would have to give for bricks
stone, labour, etc., and said he would take them all up at better rates than any
one else might offer us.
3. These three things were transparently obvious from his conversation.
Pirst, that he is going to prove his indispensability to us in the nejrociations,
second, that his recompense for services of this kind 'rendered, must be a consi
derable sum in cash guaranteed in advance, third, that he looks forward to
.y