Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎22v] (44/248)

Disposal of British and American Military Installations.
62. A list of British and joint Anglo-American fixed military installations
declared surplus was communicated to the Persian Government, who were invited
to state which of them they were interested in buying. The chief of these assets
are the Port of Bandar Shapur and the military telephone-line system. It seems
very unlikely that the Persians will be able to pay cash, and the terms under
which credit would be granted to enable the Persian Government to raise the^-
necessary money over the next few years are under discussion with the Americans.
Insistence on payment in dollars has held up American disposals, and it seems
likely that the United States authorities will agree to allow the Persians time in
which to make the conversion from rials to dollars. Conversion difficulties should
not arise in the case of payment for British assets.
Handing Back of the British-American Run Section of the Persian State
Railway.
63. The return of the railway south of Tehran from British and American
to Persian control was completed by the end of June. British de facto respon
sibility for keeping the railway financially solvent ended on the 1st July, but
the British army are prepared to make payments to cover the deficit in the southern
section of the line up to the end of September. British and American property
on the railway has been handed over to the Persians on a “ use, care and main
tenance ” basis. The future of lend-lease rolling-stock has not yet been decided
by Washington, but it is hoped that enough will be offered to the Persians to allow
the railway to continue to operate efficiently. The Soviet Embassy have not yet
announced their readiness to begin negotiations with the British and the Persians
to cover the use of the railway by the Allies during the period the 1st September,
1941, to the 30th June, 1945, though the Persians are pressing for this agreement.
There have been no signs that the Russians intend to follow the Anglo-American
example and hand back the northern section of the line to Persian control before
the expiry of the Anglo-Soviet-Persian Treaty of Allinace.
Cereals Situation.
64. By the end of June the total collections of bread-grains in Persia
amounted to 204,000 tons, of which 134,000 was wheat. Reports show that this
harvest will be a monster one. A joint Anglo-American enquiry of the Soviet
Embassy suggesting the export of food-grains drew a dog-in-the-manger reply
deprecating the idea “ at this stage.” So now the Persian Government must
decide whether they will openly ask the assistance of the Americans and British
to get rid of the anticipated surplus of some 100,000 tons of rather high-priced
wheat, or bow to the bullying of the Russians and risk a real glut and distress
amongst the cultivators, who will not be able to dispose of their coming grain-
harvest.
Locust Control.
65. This quarter saw the conclusion of the campaign in South Persia, which
had been operated by a Middle East anti-locust unit. Although infestation over
many parts, notably Bandar Abbas, was large, control was effective and no damage
to crops occurred. This speaks highly for the administration of the campaign,
since the difficulties vis-a-vis the Persian locust officers and labour were many.
Usually, the Persian officers’ reports of the area infested were greatly exag
gerated, in order that they could obtain greater quantities of bait than would be
necessary, and sell that which they could not use. Accounts and figures were
purposely falsified, until checked by the British Locust Officer.
66. It is understood that no Middle East anti-locust unit will operate in
Persia next year.
Economic Warfare.
67. The quarter under review has been marked by the relaxation of controls.
The Statutory List for Persia has been reduced to five names. The Black List
for Persia has ceased to operate and the sole name on it has been deleted.
68. New regulations concerning trade with Switzerland have been intro
duced.
New A merican A mbassador.
69. Mr. Leland Morris left Tehran on the 19th May, and his successor,
Mr. Wallace Murray, presented his letters to the Shah on the 5th June.