File 3852/1912 Pt 2 'Persia. Conditions in South Persia. German Documents' [‎222r] (75/280)

22T
11
In consequence of this, the Shah found himself constrained
to cancel the monopoly, which could only be made possible
by the payment of an indemnity to the British Company of
£ 500,000 which was raised on a 6 % loan and this —the only
Persian loan —was left as a disastrous inheritance by Nasir-
y
c agents in Pai
Ec <i; n to his son.
When Muzaffar-Eddin died, after ten and a half years of
mismanagement, he had added to it a long list of new financial
obligations which were a heavy burden on the state. Over
£ 3,500,000 had been obtained in the shape of Russian and
Anglo-Indian loans, without furthering national prosperity in
the least.
A survey of the Persian National Debt in 1906, which at
the same time shows the rigorous conditions on which the
loans were granted, gives the following picture:
Persia’s loans at the death of Muzaffar-Eddin Shah
1891 Government Nasir-Eddin Shah:
Indemnity for Tobacco monopoly . £ 500,000
1900 Government Muzaffar-Eddin Shah:
First Russian loan (5 %) for 75 years
not redeemable within 10 years,
issued at 85 Rbl. 22 y 2 millions
£ 2,200,000
Terms:
EddinoTenlt
Mar-Ei,
2
, clear compe
utioml mo®t
monopolj# [
Company in® 1
:d yearly pi
e Persian M
in Persia lad® j
Ing, so Win
lately panH
1. All Persian debts to be paid to foreigners.
2. An engagement to arrange loans exclusively with Russia.
3. All customs revenues, except those from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
to be paid to the Banque du Prets which, after retaining
the interest due, pays half-yearly the remainder, if
any, to the Persian Government.
1902 Second (Russian) loan on the same
terms as above Rbl. 10 millions
£ 1,075,000
1904 Third (English) loan by the Imperial
Bank of Persia from the Indian Go
vernment with the sanction of Russia £ 190,000
1905 Fourth (English) loan, from the same
source
£ 100,000