Coll 29/36 'Kerman: consulate buildings' [‎86r] (173/216)

Herat-es-Salteneh has himself suggested a remedy
for the situation v/hich is that the Government of India
should purchase the house and garden occupied oy His
Majesty’s Consulate at Kerman. Seeing that the Sardar Leader of a tribe or a polity; also refers to a military rank or title given to a commander of an army or division. is
in serious financial straits and has candidly declared
his inability to pay even the interest on trie loan, I am
of the opinion that the proposal of sale which has now
been put forward by the son on his behalf is the best
solution of the problem which otherwise can only result
in loss to Government. For though the Government of India
hold the property as security against the loan and could
foreclose the mortgage in the case of failure to pay, to
do so would result in the loss of Political prestige and
have a most damaging moral effect on our interests.
3. The house and property were estimated to be worth
Tomans 10,000 Persian dinars, or a gold coin of that value. 18,000 in 1923 (vide Colonel Trevor’s Express
Letter No. 395, dated the 9th March 1923) but the land
lord thinks they would be valued by local experts at not
less than Tomans 10,000 Persian dinars, or a gold coin of that value. 25,000 now. As, however, it is unlikely
that a purchaser can be found to pay this price at the
present time, it is considered likely that, the sale
could be arranged for about Tomans 10,000 Persian dinars, or a gold coin of that value. 20,000,(i.e.Bs.60,000
approximately), which the property is certainly worth.
I, therefore, recommend that the Sardar’s offer of sale
be accepted and that an offer for the acquisition of the
property” at this price be made.
4. Allowing for depreciation and simple interest
at 5fS on the depreciating value, the result of the invest
ment will be that at the end of 20 years the Government
of India will own the property free of charges (except
those for annual and special repairs)and that it will have
cost them Rs. 91,500, a sum less than what they would have
had to pay in rents alone during the same period,had such
rent beer calculated at the usual Persian rate of 10 % of
the capital value.