File 523/1912 Pt 1 'Persia: Imperial Bank: mint contract' [‎13r] (21/386)

fThis Document is .-the Pro perty ot His Britannic M ajesty’s Government,
and should be ^returned to the Foreign Oflice when done with unless
required for official use.]
(47884/17). Files only .
Cypher telegram to Sir G.Bucharxan'(Petrograd).
Foreign Oflice. March 7th.1917. 10,30 p.m.
ho.435, (R).
©
Your telegram Ho.192 (of February 15th. Currency
in Persia).
Russian proposals appear to infringe Imperial
Bank-’s monopoly of note issue. Moreover, Treasury feel
in view of sums of money previously in ‘auestion in
this connexion that figure of £,4,000,000 can scarcely be
taken seriously. The sum of £120,000 agreed to in
August lust has lasted for a period of nearly six
months during which IJussian requirements have presumably
been met through the ordinary channels of exchange and
there appears no reason, particularly in view of
Sir C.Marling*s telegram No.70, why this state of
affairs should not continue.
In any case purchase of silver to the value
of £4,000,000 could probably not be effected or if
effected might be expected to cause a most grave dis
turbance in currency system of India and also derange
currency arrangements of many other parts of the world.
In these circumstances Russian proposals cannot be
entertained nor should any negotiations on these lines
be proceeded with.
You should inform Russian Minister for Foreign
Affairs accox’dingly.
Repeated to Teheran No,70. ...