File 2410/1903 Pt 3 'Persia:- Financial Situation. Loans.' [‎10r] (24/1214)

PERSIA.
CONFIDENTIAL.
[ 21895 ]
No. x.
Section 2 .
[June 20.]
Mr. O’Beirne to Sir Edward Grey.—(Received June 20)
(No. 277.)
for I^xg^ tl nu xuxixucu tu mm me aiae-memoire, copy of wfncii is enclosed.
. — _ - j ^ jJ J V - ,J - v Y X.JLX v_/ 1_L lo C/JJLVj'XVJOCy VA
proposing that an advance of 400,000L should be made by the British and Russian
Governments to the Persian Government. Since then I have constantly reminded his
Excellency of the subject, and I have repeatedly pressed upon him orally and in
writing the reasons which make it desirable to come to an early decision. On the
14th instant, as his Excellency had intimated that the difficulty lay with the Minister
of Finance, I obtained his consent to my discussing the question with M. Kokovtzoff,
with whom I had an appointment on the following day in reference to another matter!
M. Kokovtzoff expressed to me the strongest aversion to making the advance at all; —
but I need not trouble you with his views on the subject, because he added that he had
been overborne by M. Isvolsky, and was prepared to find the money provided that he
was satisfied as to the existence of good security for its repayment. But this was not
the case. The figures in his possession showed that the northern customs revenues of
Persia did not afford a sufficient margin, after paying off the interest on the existing
Russian debt, to guarantee the service of the Russian share of the proposed advance.
In reply to a question which I put to him, the Minister said that ho had taken into
account the profits of the Mint. The security was still insufficient. He went on to
say that Russia’s position was very different from that of Great Britain. The latter
had a far smaller debt and the Gulf ports as security. Upon this I asked whether he
would be satisfied if the surplus revenues from the southern as well as the northern
customs were made jointly available as security for the service of the whole advance of
400,0001., explaining of course that this was only a personal suggestion. He said that
he would be perfectly contented with such an arrangement provided another point was
revenues by 50,0001.
I at once acquainted the Minister for Foreign Affairs of the result of my
conversation with M. Kokovtzoff. M. Isvolsky saw the Finance Minister the same
evening, and to-day informed me verbally that the Russian Government agreed in
principle to the advance suggested by His Majesty’s Government, provided (1) that the
proposal to remit the duty on silver was dropped, and (2) that sufficient security was
forthcoming for the service of the advance. He added that the suggestion which I
had made to the Finance Minister as to treating the surplus revenues from the
southern and northern customs as a consolidated security for the whole advance would
facilitate matters, and was acceptable to the Russian Government. I reminded him
that the suggestion was only a personal one.
His Excellency further stipulated that the advance should not be granted to the
Persian Government until the two representatives considered that an opportune
moment for doing so had arrived. In this connection I should explain that, ever since x
the two representatives at Tehran expressed the opinion that in view of the unsatis- ^
PoraGn Government the advance ought to be held m abeyance,
settled. The proposed admission into Persia of silver free of duty must be abandoned
by the Persian Government, for it would mean a reduction of the northern customs
discretion being left to the representatives as to the time of
I have, &c.
HUGH O’BEIRNE.
making it.
[2781 u—2]
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