'The Persian Debt to the Government of India and His Majesty's Government.' [‎2r] (3/12)

slight hope that a readiness to meet Persia halfway might
react favourably on the political relations between her and
His Majesty^ Government and the Government of India* Payment of
the reduced debt of £2,000,000 was to be made by annuities of
£180 000 (to be divided between Indian and Imperial revenues in
r-\ x
xthe the Proportions £84,630 : £95,370). Interest was to be paid at 7%
original ^ Binki fund at 2 ^. The annuity of £180,000 was to absorb the
debt of
£4,549.200 . £34 000 hitherto being paid ae interest on the pre-war loans
was made *
up 0 f £490,000. It was further agreed that payment of the first
Ind ^\®| n( a n nuity of £180,000 should be deferred until 1926-27, subject to
British. continued p aym ent in the meantime of the interest charge of £34,000
J,G,; on the pre-war loan. The Persian Prime Minister and the Persian
Government of the day accepted an undertaking on these lines,
subject however, to ratification by the Majlis.
3 # Despite constant pressure in the subsequent two years,
Majlis ratification has never been obtained for the settlement, and
the annuities of £180,000 payable under the settlement have not in
fact been paid (interest at the yearly rate of £34,000 has, however
as before the settlement, continued to be paid on the pre-war loan
of £490,000). When in the early part of 1928 comprehensive negotia
tions were initiated with Persia, His Majesty’s Government and the
Goemment of India, who were both interested in obtaining satisfac
tory settlements of a number of questions, such as the posit. o»i of
their nationals in Persia on the abolition of the Persian
Capitulations; the Persian Tariff; the situation in the Gulf
(including Bahrein); the Duzdap Railway; the air route telegraphs
and also in the counteracting of Soviet influence in Persia,
found themselves with very little with which to bargain. In tnese
circumstances, the possible abandonment of the whoj.6
debt.