'File No. II/12 Foreign Dept Memoranda of Information re: affairs in Persia and Arabian shore of the Persian Gulf. Jan '09 --' [‎65r] (129/178)

be considered desirable, such as unpreten
tious schemes on the Karun, not dependin'*
? n the building of a dam at Ahwaz; or minor
irrigation schemes from the Kerkha, Jerrahi,
Shaur, Hindiyan, or other rivers which flow
through his territories, all of which would be
profitable and useful, as ordinary items of
tribal or domestic administration, and that
reference to the Central Government would
not be necessary. He engages that, in the
contingency of any such scheme being under
taken by him, and, if need should arise for
the employment of outside help, financial or
expert, the British shall have the option, and
that he will employ such syndicate or persons
as the British Government may put him in
touch with, and that, until Great Britain has
been asked for help and has refused it, no
foreigners or foreign assistance will ’ be
employed.
In regard to the minor schemes, Sir E.
Grey considered that the Sheikh’s offer might
be accepted, as, otherwise, they might be given
to foreigners. In regard to the main scheme
it was decided to secure the assent of the
Persian Government, especially now that the
Shah had agreed to grant a Constitution, and
that caie must be taken not to create
trouble between the Sheikh and the Persian
Government. An opportunity should, if
possible, be created to secure the concession for
the Sheikh, as in this way we should both
expose ourselves less to Dutch criticism and
avoid difficulties with the Mejlis as regards
concessions to foreigners. The question arose,
however, as to whether it was advisable
entirely to exclude foreign capital, as the
necessity of compounding with the Dutch
concessionaire was a contingency which
could not entirely be overlooked. Sir G.
Barclay replied that, as regards the Mejlis, he
doubted it the proposal to secure the con
cession in the Sheikh’s name would avoid
difficulties, as the Karun irrigation question
had been so much before the public and was
thought to be so profitable that great oppo
sition and the closest scrutiny might be
expected when the Sheikh applied for the
concession. As regards the exclusion of
foreign capital, Sir G. Barclay considered this
desirable, and expressed the opinion that Dutch
claims to participation wmuld *presumably
cease on the expiry of their option in January
1911, and that it was not improbable that the
Mejlis would cancel it before then. This end
might also be attained by the Sheikh protest
ing against the option when the Mejlis met
and himself applying for the concession.
Even if he were not successful, he would at
least have first claim to be considered when
the Dutch option did expire. In the event of
it becoming necessary to compound with the