'File 60/20 I (C 93) Imperial Bank of Iran: Bahrain, etc' [‎73r] (147/409)

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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT
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PERSIA.
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CONFIDENTIAL
7
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June 10, 1930.
Section 5.
[E 3028/697/34] No. 1.
Sir R. Clive to Mr. A. Henderson.—(Received June 10.)
(No. 236.) ,3
Sir, ^ 1 Gulhek, May 30, 1930.
IN continuation of my despatch No. 22J of the 15th May regarding the settle
ment between the Imperial Bank of Persia and the Persian Government, I have the
honour to enclose herewith a resume of the debate which took place in the Majlis
when the agreement came up for ratification, and of further newspaper articles on
the subject. #
2. The opposition to the agreement in the Majlis was led by the Deputy for
Yezd, Farokhi, who has long been known to this Legation as being in the pay of the
Soviet Embassy. On the 24th May I learned from a private but well-informed source
that, on the publication in the press of the agreement, Loganovsky, the Soviet Charge
d'Affaires, called on Teymourtache to protest against the agreement. I am given to
understand that there was a very stormy interview between the two, in the course of
which Loganovsky was practically told to mind his own business. That Loganovsky,
after this interview, should have put up Farokhi to attack the agreement in the
Majlis, a Majlis, moreover, which, with very few exceptions, is completely dominated
by the Minister of Court, would appear to be very foolish, as these tactics could have
no chance of succeeding. On the contrary, the press has been mobilised to support
the Minister of Court and to defend the agreement.
3. On the 27th instant, the second reading of the agreement came up for
discussion in the Majlis. Farokhi again distinguished himself by violently opposing
it, but his speech had no effect, and the agreement was ratified by 85 out of 93 votes.
4. Mr. Wilkinson informed me on the 26th instant that the Commission of
Control, at its sitting on the previous day, had delegated its powers to the two banks
jointly, and that the commission would henceforward only sit once a fortnight to
receive'a report on the amount of exchange bought and sold. The two banks would
deal in exchange by mutual agreement and without reference to the commission.
Mr. Wilkinson thought this arrangement would ease the situation considerably.
5. Copies of this despatch, with its enclosure, have been sent to the Foreign
Secretary to the Government of India, and to His Majesty's High Commissioner
for Iraq.
I have, &c.
R. H. CLIVE.
[147 k—5]
* Not printed.