File 523/1912 Pt 1 'Persia: Imperial Bank: mint contract' [‎159r] (313/386)

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[This Document is the Property of His Britannic Majesty’s G overnment ]
PERSIA.
CONFIDENTIAL.
[24666]
[May 29.]
No. 1.
Section 9.
Paper communicated by Sir J. Jackson May 29.
( 1 .)
Memorandum for the Chairman, May 29, 1913.
1. TRANSLATION of a telegram received from the acting chief manager of the
hank in Tehran on the 21st May, 1913.
1a. Mr. Wood’s letter, dated the 22nd May, 1913.
2. Copy of Mint contract, dated the 27th November, 1911, for ten vears from the
22nd March, 1912. J
3. Memorandum left by Sir Thomas Jackson at the Foreign Office on the 4th March,
1910, with copies of letters referred to therein.
The contract now suggested referred to in the Tehran telegram of the 21st May,
1913, would, if granted, be—
(1.) An infringement of the Mint contract concluded with the bank by Mr. Shuster
under full authority.
(2.) Would violate the bank’s concession, and
(3.) Would imperil the value of the bank’s note issue as it would not be in a
position to import bar silver to maintain the necessary metallic reserve against its issue
of notes.
In the year 1903 the Banque d’Escompte de Perse attempted to issue bank notes,
see our letter to the Foreign Office of the 28th October, 1903, Foreign Office letter to
the bank of the 7th December, and the bank’s letter to the Foreign Office dated the
17th December, 1903. The concluding paragraph of the last mentioned read :—
“ Should our monopoly of note issue be successfully challenged, defied, and broken
down, it will be necessary to reconsider the position of the Imperial Bank in Persia,
and to invite His Majesty’s Government to support our just demand for adequate
compensation, the amount of which only experts can determine.”
(2-)
Translation of Telegram received from Tehran May 21, 1913.
Received from Ministry Finance confidentially copy Mint contract submitted
Persian Government by Banque d’Escompte de Perse, date from 14th July, 1913,
period in blank otherwise same conditions as our ten years contract except 1 per mille
instead of ^th per cent, commission.
The chief manager had an interview with British Minister. We are writing
officially protesting against contemplated contract on grounds according to the terms
our concession Imperial Bank of Persia entitled free access Mint. British Minister
telegraphing British Foreign Office on receipt of our protest.
(3.)
Mr. Wood (Tehran) to Mr. Newell (London).
Dear Mr. Newell, May 22, 1913.*
Thanks for yours of yesterday with the enclosures mentioned, and which I now
return.
* Mr. A. 0. Wood is in England and doubtless was consulted by the bank.
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