Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎25r] (49/248)

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THIS DOCUMENT IS THE PROPERTY QP HIS HRITANlftC MAJESTY’S GOVERNMENT
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PERSIA.
SECRET.
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May 22, 1945.
Section 1.
Sda-tjE.
Copy No. f 32
Sir R. Bullard to Mr. Eden.— {Received 22nd May.) *o
^ Tehran, 25th April, 1945.
’ WITH reference to ray despatdh No 21 of the 23rd January^Jj Mo^l have
the honour to transmit to you herewith a report on Persian affaiis during
January, February and March 1945.
Internal Politics and Relations with the Soviet Union.
1. At the beginning of the year the Government, under the pressuie of
a Soviet-inspired propaganda campaign demanding that steps be taken to
increase employment, issued a circular to all the provinces promising extensive
administrative and social reforms, including the passing of measures leading up
to the creation of provincial councils, the improvement of the condition ot rural
and industrial workers, radical reform of Government departments, enforce
ment of the free compulsory education law, and plans for the development of
agriculture and industry and for the exploitation of underground resources.
2. At the same time the Prime Minister, in an effort to placate the Russians
in connexion with the oil concession dispute, informed the Soviet Ambassador
that the Persian Government intended to form a Persian company for oil
exploration, employing if possible Persian experts for the work. If these were
not available, then “ neutrals ” were to be engaged ; and failing them, the Persian
Government -would apply for experts to the Soviet (government. The Soviet
Ambassador was reported to have shown little enthusiasm over these proposals,
but to have promised reluctantly to inform his Government.
3. Under the new oil law the Prime Minister should have informed the-
Majlis of these proposals, but he did not do so for fear lest the ensuing
controversy might wreck any dhance of an agreement. It was not long, however,
before rumours that he had been in negotiation with the Soviets began to arouse
the suspicions of those Deputies who considered Bayat capable of going too far
in his promises to the Russians. Many Deputies, indeed, believed that Bayat, on
assuming office, had made two defihite promises to the Russians : (1) that he would
get rid of Dr. Millspaugh, and (2) that he would induce the Majlis to reconsider
the law passed in December making it illegal for any Persian Government to
give an oil concession to any foreign Government or company. On the whole,
Bayat had the House with him over the Millspaugh question, although there
were some Deputies who subsequently considered that by depriving Millspaugh
of his economic powers he bad caused the situation to deteriorate. (Tor a report
of the Millspaugh question see below). But those Deputies who opposed con
cessions to the Soviets were now determined to get rid of Bayat. They were
joined by others who, having used Bayat to get rid of Millspaugh, were ready
to turn Bayat himself out. As a result there was a realignment of ‘ ‘ fractions
in the Majlis. The largest fraction, the Ittehadi Milli, to which the Prime
Minister had himself belonged, split into two groups, one in support of and the
other opposed to him. The “ Mihan ” fraction, which, together with the
“ Ittehadi Milli,” had been responsible for bringing Bayat to power, now openly
opposed him. Of the other fractions, the “Democrats” also opposed Bayat,
whereas the “ Mustaquill ” and many of the independents and even the Tudeh
were inclined to support him. Bayat had in fact lost the support of the more
conservative elements of the Majlis who had chosen him as Prime Minister
and seemed increasingly dependent on his erstwhile opponents of the Left to
keep him in office. But his position had become very shaky in the process, and
there was much talk of his imminent departure. Among those mentioned as
possible successors were Qawam es Saltaneh, who is always a candidate; Soheily,
who, however, has not yet been exonerated from charges of corruption, undue
influence, &c.; and Mehdi Quli Hayat, who is eighty. But the Deputies failed to
agree about the choice of a new Prime Minister and Bayat firmly refused to
resign.
[66—57]
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