File 240/1913 'Mohammerah - Khoremabad Railway; the Khor Musa agreement' [‎73r] (150/452)

CONFIDENTIAL.
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Sir Tf. Townleyto Sir Edward Grey.- (de February 24, 12'30 p.m.)
Tehran, February 23, 1913.
{February 23, 9‘20 p.m.)
(No. 81.) E. (UA)
YOUR telegram No. 94 of 19th February.
The P ers ^ n Government have agreed to eliminate the sentence quoted in vour
telegram No. 86 The following words are inserted, however: “ By
mutual consent m each case after the words “ on conditions to be arranged hereafter ”
and at commencement of the second paragraph of the option, as quoted in my telegram
T °' 7 ’ the words “ in order to be in a position to choose one of the
two above-mentioned methods are changed to “ in order to arrive at a decision in the
matter and, lower down, the sentence “ by virtue of ” to “construction ” is omitted.
wnrrVH fn clai,se u fl ^ 1 . n g. the length of the duration of the option, proposed letter is
woraed as follows : \\ithm that period the Persian Government shall communicate
its decision to the syndicate, but the result of the survey, with necessary data, must be
submitted to the Persian Government six months before the end of that period
Should events of force majeure hinder operations of surveyors, the time which has been
"v d wn Pr 1 SeUting the - ieSll i lt ° f the surve y wil1 be prolonged for a period during
which the above operations have been delayed.”
In submitting to me the above amended proposal, the Minister for Foreign Affairs
requested me to invite Wood to call at the Ministry for Foreign Affairs and exchange
original proposal for new one. I am replying that I have advised Wood to wait before
doing so to see it the new' proposals are acceptable to the syndicate.
r , t T 1 f, Mlnister Foreign Affairs has had very great difficulty in getting the
Cabinet to agree to eliminate sentence respecting the syndicate building at its own
hftPnXd T' 1 i : es P onsib, | lt y> aild 1 bave bad to refuse several suggested alterations
intended to safeguard the 1 ersian Government against having to provide financial
guarantee. During numerous long conversations I have had' with the Minister for
1 oreign Affairs during the last few days, it has been made clear that the Persian
government fear they may be forced by terms of the option either to have a State
lailway built by the syndicate at a heavy loss, or to give the syndicate a guarantee of
a most onerous nature. The “ redundant ” argument was seen through at once, and
has made the Persian Government so suspicious of the syndicate that I have had the
greatest difficulty, even with the help of your arguments, to persuade the Cabinet to
feared^ ellmmatl0n ° f sentence - The other alterations made clearly show what is
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28 FEB 1913
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