File 4345/1912 'Trans-Persian Railway' [‎7r] (18/330)

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[This D ocument is the Property of His Britannic Majesty's Government.}
YOU will doubtless have read the report of the debate which took place in the
House of Lords on Wednesday with reference to Persian affairs. You will w^ell
appreciate that I did not feel justified at the time in addressing any questions to
Lord Morley, especially as I felt in hearty agreement with the expediency of the broad
lines of policy which he indicated as being that of His Majesty’s Government. I
was particularly glad to hear his confirmation of what you were kind enough to tell me
on Tuesday, to the effect that definite steps are contemplated for establishing law and
order in Persia, as it is obvious that no kind of large financial operation can be carried
to a successful issue until matters in that country have assumed a normal condition.
If I had ventured to address any remarks to Lord Morley, I should have expressed
my conviction that he would be the first to recognise that the formation of the Soeiete
d’Etudes was agreed upon with the consent and approval of Great Britain and Russia,
with the primary object of facilitating the study of a trans-Persian railway project, and
with the further purpose of obtaining an option for ultimate construction ; and that the
Societe d’Etudes, as such, has no pretensions to assume any responsibility as regards
matters purely financial in Persia.
You will notice in the enclosed report which I have cut out from yesterday’s
“ Times” it is suggested that “'negotiations and operations are now going on between
the Persian Government and the Societe d’Etudes.” This, as you are well aware,
would hardly seem to be an accurate representation of the present position of the
Societe d’Etudes. Moreover, it occurs to me that the mention of actual figures, which
may possibly prove wholly disproportionate to the security at present available in
Persia, is likely to give rise to hopes which appear to have but meagre chances of early
realisation.
The second point underlined* in the cutting which I enclose is of really vital
importance from the practical point of view, as personally I consider that the formation
of some kind of “ caisse ” or “ board of control Formally known as the Board of Commissioners for the Affairs of India, it was established by an Act of Parliament in 1784 to supervise the activities of the East India Company. ” is a sine qua non, if some satisfactory
security is to be created for the service of any loan which may be made upon the
hypothecation of the resources of the country itself. There must be some machinery
of sufficient power and authority to control Persian finances and to control them
effectively ; and if I may venture an opinion, I should be inclined to say that the
confidence of European markets can only be commanded by direct Anglo-Russian
representation in the Persian administration.
I feel confident that both Lord Morley and yourself will well appreciate the
diffidence which I felt in venturing to address any questions to him the night before
last, but I feel equally sure that you will also forgive my losing no time in drawing
attention to the above points, as I should be the first to deprecate any misapprehension
in the mind of the public or in that of His Majesty’s Ministers as to the actual position
of the Societe d’Etudes.
Lord Lamington asked the Government whether they would make a statement
PERSIA.
M
[February 21.]
CONFIDENTIAL.
Section 4.
[8394]
No. 1.
Lord Bevelstoke to Sir A. Nicolson.—{Received February 21.)
Aly dear Sir Arthur,
8, Bishoysgate, London, February 21, 1913.
Believe me, &c.
REVELSTOKE.
Enclosure in No. 1.
Extract from the “ Times ” of February 20, 1913.
The Position in Persia.
with reference to the present position of affairs in Persia, having special reference (1) to
* Printed in italics.