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Coll 28/22 ’Persia; Relations with H.M.G. Persian Debt to H.M.G.’ [‎86r] (171/385)

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The record is made up of 1 file (191 folios). It was created in 12 Jun 1931-1 Mar 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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Uiniater of Court maintains that the value of a claim depends
chiefly on the value attached to it by the clairaant, it is no
less open to His Majesty's Government to adopt the same attitude
in rs^ard to some of their am proposed concessions. The British
claim to Basidu is juridically weak, but its weakness can hardly
be compared with that of the Persian claims to Tnmb, Abu llusa
and Bahrein, in view especially of the facts that Baaidu has
been occupied for over a century by the British md that the
Persian claims are to Islands never, at least since a remote
period, in their effective occupation.
4. The Dussdap railway still appears to dir B&muel Hoare
to be one of tiie most important bargaining assets in His Majesty*s
Govemra<nt's possession. It has always bean clear that it is in
any case impossible for K. . Government and the Government of
India without rersia's consent to retain possession, but Persia
wouIg gain little from her acquisition of that section unless it
was coupled with an agree lent by the Government of India to
provide rolling atjck, ato., and (moat important) to operate the
Indian section of the line. This the Government of India can
only do at groat financial loss to themselves, and it is the
prospect of this concession WfdcL gives possibilities of
leverage in the negotiations.
6. Subject, however, to these observations, dir Gamuel
Ho&re agreste with dir Jolvi Biuion's concluaion that the Minister
of Court is evidently trying to obtain a success for Persia in
the negotiations even more spectacalar thjan tlmt which would have
boon secured oy a settlement reached at the conclusion of Sir
Hobert Clive's negotiations. The question is how far the
essential desiderata of H* I* Government will p rait t)ieni to co
operate with him to this end- Sir Samuel ^rees, moreover, with
tne brief sunmary of the present position in pura. 6 of your
letter.
6. As regards the future of the air route, Sir Samuel
Hoare is impressed by the views conveyed in paras. 7 and Q of

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Content

Correspondence concerning the Persian Government’s desire, signalled in June 1931, to pay off in full a pre-war interest-bearing debt owed to Britain, totalling £490,000. Correspondence is chiefly exchanged between the Foreign Office (Charles William Baxter, George William Rendel), the 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. (John Gilbert Laithwaite), the Treasury (Thomas Kenneth Bewley), and the British Legation at Tehran (Charles Dodd), and covers:

  • The wording of a formal response to be given to the Persian Government, that does not comprise or jeopardise the outstanding (post-war) debt of £1,510,000 remaining to be paid.
  • The nature of the servicing of the debt and its interest.
  • In late August 1931, the Persian Ministry of Finance’s decision to abandon service of the debt, and continue payment of interest on the debt at seven per cent.
  • In 1932, the Persian Ministry of Finance’s reversal of their earlier decision to abandon servicing of the debt.
  • In June 1933, confirmation via the Imperial Bank of Persia of the full servicing of the pre-war debt.
  • 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. correspondence dated October 1933, enclosing a provisional draft of instructions for a General Treaty between Britain and Persia, making mention of the outstanding debt owed by Persia to Britain (ff 16-34).

The file contains two letters in French (f 42, f 47), sent by the Treasury General of the Persian Ministry of Finance.

Extent and format
1 file (191 folios)
Arrangement

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

Physical characteristics

Foliation: the foliation sequence (used for referencing) commences at the inside front cover with 1, and terminates at the last folio with 192; 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.

A previous foliation sequence, which is also circled, has been superseded and therefore crossed out.

Written in
English and French in Latin script
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Coll 28/22 ’Persia; Relations with H.M.G. Persian Debt to H.M.G.’ [‎86r] (171/385), British Library: India Office Records and Private Papers, IOR/L/PS/12/3419, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100041980874.0x0000ae> [accessed 29 March 2024]

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