File 523/1912 Pt 1 'Persia: Imperial Bank: mint contract' [‎159v] (314/386)

2
The Russian's apparently are bent on getting a share of the Mint, and it will he
a pity if they succeed, as their object is purely political and m no sense can ,t improve
the economic conditions of the country. If their contract is a copy of ours, it means
htt they are applying for an exclusive privilege for a number of years which, o
course, cannot be permitted in view of our note concessiom I presume they will ,
endeavour to get the Cabinet to pass the measure and not the Treasurer-General alone,
otherwise (according to Russian arguments) our ten year contract must hold good. In
any case, I hope tht contract I made with Shuster will be fought on its merits Any
reference to the “ Fundamental Law ” is quite beside the point m view of the Law
of 13th Toza,” granting Shuster the plenary powers he enjoyed.
rours sincerelyj
a r\ wrvrATA
(4.)
Mr. Wood {Tehran) to Mr. Newell {London).
Dear M^Newell, Mran, November 29, 1911.
I confirm my letter No. 23/11 of to-day, and now enclose a copy of the new Mint
agreement which I have contracted with the Persian Government for a further period
of ten years from 22nd March, 1912.
Yours sincerely,
A. 0. WOOD.
(5.)
Mint Agreement.
An agreement made between the Imperial Bank of Persia (hereinafter called the
bank) of the one part and the Imperial Government of Persia, acting through its
representative the Treasurer-General of Persia by and with the authority of the Law
of Medjliss of the 23rd of Jauza, 1329 (their year), (hereinafter called the Government),
of the other part, by which the bank undertakes to buy bar silver for account of the
Government and for shipment to Persia for the purpose of coinage by the Imperial
Mint upon the following terms :— 1 2 3 4 5 6 7
1. This agreement shall be in force for the period of ten years from the twenty-
second day of March, 1912.
2. The Government, having reserved to itself the exclusive monopoly of importing
silver for coinage, the bank is hereby appointed sole agent for the purchase of such
silver and for the forwarding of the same to Tehran, and the Government binds itself
not to import any silver whatsoever through the agency An office of the East India Company and, later, of the British Raj, headed by an agent. of any other party nor to
purchase silver imported by any other party during the period of this agreement. The
Government agrees to pay all expenses covering the purchase of the silver and its
transport of Tehran, including insurance, &c., incurred by the bank for account of the
Government, as set forth in article 8.
3. The Government binds itself to purchase exclusively from the bank all foreign
exchange for the importation of the silver in question.
4. The rate for the purchase of all such exchange is fixed upon the basis of f per
cent, (three-quarters per cent.) above the buying rate of the bank for telegraphic
transfers on London. The price at which the silver is to be purchased shall be
determined simultaneously with the fixing of the rate of exchange.
5. The amount of silver to be imported under the terms of this agreement will be
determined by the Government month by month, but it is understood that should it
not be profitable to import, on account of the rate of exchange and the price of silver,
it will not be binding on either side to import under such conditions.
6. The Government agrees to pay the bank a commission of ^th per cent, (one-
eighth per cent.) on the value of all bar silver imported during the period of this
agreement; this commission to be calculated on the sterling cost of the silver payable
in krans at the same rate for sterling as fixed for each parcel of silver purchased.
7. The bank agrees to provide such sums as shall be required from time to time
for the purchase of bar silver to the extent of 300,0001. (say three hundred thousand