'P. 1. 2410/1903. Persia:- Financial Situation. Loans.' [‎167r] (338/1056)

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CONFIDENTIAL.
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Sir A. Hardin ge to the Marquess of Lansdowne*—{Received March 13, 6*40 j\m.)
(No. 3'.) (
(Telegraphic.) Tehran, March 13, 1905, 11 a.m.
GOVERNMENT of India’s despatch of 22iid December.
As Persian Government is still evading compliance with our demands respecting—
1. Urmnia incidents,
2. Attack on Military Attache, and
3. Governor of Seistan,
I am applying pressure suggested in last paragraph of my telegram No. 29 of
8th March.
I have asked for audience of Shah, whose objections are alleged by his Ministers
as their excuse, but if this proves ineffectual, I propose, inasmuch as use of force, such
as dispatch of ships to Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. to enforce our rights, would presumably at present
juncture in Asiatic politics be inconvenient, to inform Persian Government that we
shall settle these matters for ourselves on following lines :—
1. As regards Urumia and Military Attache claims, we shall pay these ourselves
and recover them from Persian Government by appropriation of Task royalty of 600/.
a-year, plus interest, payable by us to Persia under Article II of Convention of 1868.
Our total claim being about 3,000/. (if we charge 1,000/. on account of Daniel murder,
which I am informed we could reduce if necessary), we shall thus sequester Task
royalty for five to six years.
2. As regards Seistan, till adequate securities are given for our interests there, we
shall (1) retain MacMahon, or whoever relieves him, wdth his force to protect him if
necessary, on analogy of Russian Commissioner at Gumbadi Kabus, and (2) decline
further discussion as to Mirjawa boundary, and reserve and exercise our right to
occupy such places along it as we deem our own interpretation of Holdich Agreement
to entitle us to hold : in other words, without this boundary, MacMahon’s red line.
3. Ahwaz Dam loan. We shall withdraw our conditional offers of financial
assistance on this account, and shall take such steps as we think requisite to prevent
its being obtained elsewhere. This v r e can effectually do, as no Dutch or Belgian
Syndicate will care to put money into it in face of our avowed opposition or of that of
the Sheikhs and Arabs if backed by us. Even Russia would probably find it
impracticable.
I am informing Grand Vizier that, in view of his bad faith, 1 regard as cancelled
my promise to recommend his Ahwaz proposals to your Lordship. See my despatch
No. 165, 3rd September, page 5.
Persian Government in these matters is not so much unfriendly as^ feeble,
penniless, and, therefore, dilatory, but it can with an effort afford us satisfaction, and
I think, with Government of India, that time has come when we should force it to
do so.
Pray inform me as soon as possible if you approve this course. I he sooner I non
act the better.
(Repeated to India.)
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