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Coll 28/22 ’Persia; Relations with H.M.G. Persian Debt to H.M.G.’ [‎90r] (179/385)

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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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justifiable for His Majesty's Grovemment to take the line that this development
proves that Teymourtache is not genuinely anxious to reach an acceptable settle
ment, and that, in these circumstances, unless he is willing to waive his suggestion
regarding Henjam, it appears useless to continue negotiations for the proposed
Treaty of friendship. There are, however, strong objections to the adoption of
this course. The absence of adequate legal justification for the presence of the
l^^ritish naval depot in Henjam renders it impossible to continue to use the depot
against the wishes of the Persian Government. If, then, the Persian Govern
ment press for withdrawal, there is no possible ground for a refusal to comply
with their wishes, and all that can be done is to endeavour to obtain sufficient
notice to make alternative arrangements elsewhere, To break of! treaty negotia
tions owing to the Persian attitude regarding Henjam would not improve the
position, for, in the event of a rupture of negotiations, it would still be necessary
for His Majesty s Government to comply with the Persian Government’s desire
that the depot should be removed elsewhere.
10. It will be seen that Mr. Hoare suggests that the question of Henjam
should be dealt with by notes, to be exchanged simultaneously with the signature
of the treaty, under which His Majesty’s Government would agree to withdraw
from Henjam, and the Persian Government, on their side, would grant sufficient
time for alternative arrangements to be made elsewhere. Mr. Hoare has
explained semi-officially that he might try to arrange for this final note from the
Persian Government to contain an assurance that the units of the Gulf Squadron
would still be welcomed at Henjam for recreational purposes in the course of
their cruises, and he would also endeavour to secure an interpretation of the term
recreational purposes, ' in a semi-official letter from Teymourtache, as meaning
that the canteen, club and football ground could be retained.
11. While there can be little doubt that, if the Persian Government insist
on a withdrawal, it will be necessary to accept a settlement on the lines proposed
by Mr. Hoare, if this can be arranged, it might be possible at the outset to
approach Teymourtache on somewhat different lines in the hope of reaching a
more satisfactory solution. Mr. Hoare might say that negotiations have been
proceeding for years on the assumption that Teymourtache was prepared to agree
to a lease of Henjam; His Majesty’s Government now wish to hold his Highness
to his previous agreement to come to a mutually satisfactory arrangement on
this question. If, however, his Highness does not wish to enter into a formal
lease, such as that hitherto under discussion, His Majesty’s Government will be
satisfied if he will agree that His Majesty’s ships shall for a certain period of
years enjoy the facilities for recreation and refuelling at Henjam which they
have enjoyed in the past; and it would be well if Mr. Hoare were in a position
to add that the forthcoming arrival of the new Persian navy seemed to render it
possible lor His Majesty s Government to repay the Persian Government foi*
facilities granted to His Majesty’s ships at Henjam bv providing facilities,
though of a somewhat different kind, for the new Persian navy. Tor example’,
Mr. Hoare might point out that the Persian Government will inevitably find that
their new warships, if they are to be maintained in a seaworthy condition, will
require the normal docking facilities at certain stated periods' and that, until
the Persian Government have provided such docking facilities for themselves, it
might be convenient for them to be allowed to use such facilities as are available
in Indian dockyards. Although the Secretary of State is not confident that this
line of approach would offer a satisfactory solution, he considers it desirable at
least to explore the possibility of offering the Persian Government advantages
for their navy, such as docking facilities, and I am to enclose a copy of a letter
which has been addressed to the Admiralty on this point.
12. Finally, as regards the General Treaty negotiations as a whole, it seems
necessary to decide which are the essential points upon which Mr. Hoare should
stand firm. If, as explained above, it is not proposed to accept as a basis of
negotiation the offer of the South Persian air route as the sole advantage to be
gained by His Majesty s Government from the treaty, and if it is impossible to
obtain as a result of the treaty the facilities required at Hen jam it seems
necessary to concentrate on the other British desiderata enumerated in
paragraph 3 above. More especially, it seems desirable that the Persian claims
to Bahrein, Tamb and Abu Musa should be finally disposed of as a result of the
general settlement. The Persian claim to Bahrein, in particular however
ill-founded it may be, is inconvenient on account of the considerable expenditure

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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.’ [‎90r] (179/385), British Library: India Office Records and Private Papers, IOR/L/PS/12/3419, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100041980874.0x0000b6> [accessed 29 March 2024]

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