File 523/1912 Pt 1 'Persia: Imperial Bank: mint contract' [‎179r] (353/386)

[This Document is the Property of His Britannic Majesty's Governn^t. 1 ^
fen ’ Tehran, January 22, 1912. // ,
W11H reference to my telegram No. 43 of the 15th January, I have the honour to )
forward a copy of the contract for a period of ten years for the exclusive importation of ^
silver for minting purposes, which the manager of the Imperial Bank obtained from the
late Treasurer-General on the eve of the latter’s dismissal.
I fear that the question of the validity of this contract is likely to be raised by the ]
Bussian Government. For the Bussian Bank, who have twice been beaten in their
efforts to obtain a mint contract, are not likely to acquiesce in a third defeat if they
can find a flaw, and M. Poklewsky contends that in signing the contract without the
express sanction of the Medjliss Mr. Shuster acted ultra vires, and that the contract,
therefore, is so much waste paper. On the other hand, the manager of the Imperial
Bank maintains that, under the law of the 13th June last (see my despatch No. 95 of )
that dateb Mr. Shuster was empowered to conclude a contract of the kind without ' / /
special reference to the Medjliss.
Before this despatch reaches yon, you will doubtless have received a complaint from j ^
the Bussian Government, and I presume that I shall then be favoured with instructions. ! q*’ ‘
The question is a very awkward one, and threatens us with the dilemma of a conflict
representative, the Treasurer General of Persia, by and with the authority of the law
of the Medjliss of the 23rd Jauza, 1329 (hereinafter called the Government),
of the other part, by which the bank undertakes to buy bar silver for account of the
Government, and for the shipment to Persia for the purpose of coinage by the Imperial
Mint upon the following terms :—
1. This agreement shall be in force for the period of ten years from the 22nd 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 to 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 purchase of all such exchange is fixed upon the basis of 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.
PEBSIA.
[February 8.]
Section 5.
[5537]
No. 1.
(No. 14.)
Sir G. Barclay to Sir Edward Grey.—(Received February 8.)
with the Bussian Government or the withholding of our support from the Imperial Bank
in a matter which the manager of the bank regards as vital for the security of the note
issue.
As reported in my telegram referred to above, Mr. Wood onlv informed me of this
contract the other day, as he thought it would be awkward for me to have cognisance
of it. He even refrained from having it registered at the legation.
Enclosure in No. 1.
Agreement between the Imperial Bank of Persia and the Persian Government.
I have, kc.
G. BABCLAY.
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
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