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Coll 28/15 ‘Persia. Internal Affairs. Political and Administrative Changes.’ [‎134r] (268/286)

The record is made up of 1 file (141 folios). It was created in 22 Jul 1931-30 Jun 1940. It was written in English and French. The original is part of the British Library: India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. Records and Private Papers Documents collected in a private capacity. .

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3
interesting sequel to this tribal revolt was the downfall of Firuz Mirza, the
Minister of Finance. The Shah, wrapt fn a maze of suspicion, conjured up the
idea of a Qajar rising. Firuz, as a Qajar Prince, was arrested, as was his
cousin, Akbar Mirza, the Governor-General of Fars. His Majesty even felt
doubts as to whether the Minister of Court was entirely above suspicion. New
elements hostile to Teymourtache were introduced into the Cabinet, and it was
Several months before His Highness regained his old ascendancy.
9. Meanwhile, in August, the Lawrence bogey having been successfully laid
for the time being, negotiations for a general treaty and a commercial treaty
with His Majesty's Government were once more resumed. As was to be expected,
the Persian demands were exorbitant. They not only included the remission of
the whole pre-war and war-time debt, but the cancellation of all claims, the
cession of the islands of Tamb and Bu Musa and the provision of a fleet of
gunboats and patrol boats. Discussions went on through the autumn. They
continued intermittently until the autumn of 1930, since when they have been in
abeyance. The points at issue have been greatly narrowed down, and if the
Persians were genuine in their desire to reach a settlement, both treaties could
very soon be concluded.
10 . By November 1929, coinciding with the beginning of the slump in
America, black clouds again appeared on the horizon. Silver, on which the
Persian currency is based, was falling rapidly in value. The exchange rate of
the kran had fallen from 50 to 70 to the £. The Imperial Bank of Persia was
accused of manipulating the exchange for their own base ends. It cannot be said
that the Imperial Bank rose to the occasion or met the situation with skill. They
certainly did not. They offered advice, it is true, as to how to meet the situation,
but scornfully repelled the proposals of the National Bank that the exchange rate
should be fixed in agreement between the two banks. Dr. Lindenblatt seized the
opportunity to disparage the Imperial Bank and to incite the Minister of Court
against this “obstructive and unhelpful British institution/’ with the result
that, in February 1930, a law was passed under which a commission was
appointed to fix the rate of exchange from day to day. This commission was
dominated by the German manager of the National Bank, and the rate was
arbitrarily fixed at 60 krans to the £. The Imperial Bank’s control of exchange
was gone' for ever. Dr. Lindenblatt had, indeed, succeeded in his object of
undermining the position of the Imperial Bank and of establishing the National
Bank in a privileged position. It was indifferent to him whether the rate fixed
was economically justified or not. With the help of Government funds which
were temporarily placed at his disposal, he was able to sell exchange and draw
away many of the old clients of the Imperial Bank. Simultaneously a law was
passed establishing, as from March 1931, a currency based on gold. But here it
was impossible to ignore the Imperial Bank, as under their concession they still
had for another twenty years the sole right of note issue. A bargain was
eventually made under which the bank's right was bought out for the inadequate
sum of £ 200,000 and certain privileges granted which included their being placed
on an equality with the National Bank for ordinary banking business. 1 he
Imperial Bank undoubtedly could have, and should have, obtained an additional
£ 100,000 for their right of note issue.
11. Bv the autumn of 1930 the economic situation had become, as it still
remains, the main issue in Persian politics, although Persia has probably been
affected much less than most countries by the world economic depression. The
arbitrary fixing of the kran at the rate of 60 to the £ (later raised to 90) was
done in "defiance of expert advice, and resulted, as was anticipated, in wholesale
evasion. Business continues to be done outside the banks at the bazaar rate, and
it is quite beyond the power of the Government to stop this.
12. The gold exchange law, another phantasy of the Minister of Court,
seems equallv doomed to failure. The intention was to bring the new currency
(1 Pahlavi = £l. 1 rial = Is.) into force in March of this year, but this has now
been postponed until September. The public are quite in the dark on the subject.
Nothing is known as to how it is proposed to control the new currency, while
the bankers fail to see how it will be possible to keep it from going to a discount.
13. Finally, the Trade Monopoly Law can only, if persisted in, have the
effect of ruining the country’s commerce. This law, designed by Teymourtache
in imitation of the Soviet system of State trading, and forced through the Majlis
without discussion last February, purports to control, under the Government, by
[200 1—5] b 2
Q

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Content

Correspondence relating to changes within the Persian Government: the appointment and dismissal of ministers by the Shah of Persia (Reza Shah Pahlavi); the resignation or death during duty of ministers; the reorganisation of governmental departments (both central and provincial) at the instigation of the Shah.

Items of note in the file include:

  • A text containing a number of articles concerning changes to addresses and titles in the Persian royal and government hierarchy. The text is undated and with no indication of author, but is presumably a translation from the French or Persian and dates to around 1935, being part of the Shah’s programme of modernisation of Persian society (ff 102-103).
  • A translation of regulations relating to the reorganisation of the Persian Ministry of Foreign Affairs (ff 80-89).

The correspondence is chiefly sent by various officials at the British Legation in Tehran (Robert Henry Clive, Reginald Hervey Hoare, Hughe Montgomery Knatchbull-Hugessen, Victor Alexander Louis Mallet, Nevile Montagu Butler, Horace James Seymour). A small number of items in the file are in French.

Extent and format
1 file (141 folios)
Arrangement

The papers are arranged in approximate chronological order from the rear to the front of the file.

Physical characteristics

Foliation: the main foliation sequence (used for referencing) commences at the inside front cover with 1 and terminates at the last folio with 142; these numbers are written in pencil, are circled, and are located in the top right corner of the recto The front of a sheet of paper or leaf, often abbreviated to 'r'. side of each folio. An additional foliation sequence is present in parallel between ff 2-141; these numbers are also written in pencil and circled, but are crossed through.

Written in
English and French in Latin script
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Coll 28/15 ‘Persia. Internal Affairs. Political and Administrative Changes.’ [‎134r] (268/286), British Library: India Office Records and Private Papers, IOR/L/PS/12/3411, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100040361146.0x000047> [accessed 28 March 2024]

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