Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎38v] (76/248)

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a small section who fled to Iraq, surrendered some 1,300 rifles. The Beni Tamim'
have now begun to hand in their arms.
60. In Kuh i Gain a delicately-balanced situation exists between the con
flicting sections of the Boir Ahmadi. Both sides are wearying of the tension
and showing a tendency to come to terms. Whether this will be to the benefit of
their neighbours only time will show. There has certainly been less than the usual
Boir Ahmadi raiding since the tribes were occupied in sparring with each other.
61. The so-called union of the tribes of the south continues to attract the
interest of the Russians and the hostility of the Tudeh press. To both it looms
as a plan organised by the British for the support of feudalism and reaction as
a defence against the purer tenets of the Tudeh party, or more simply, as a
scheme for the establishment of an armed bloc under British influence to be used,
if necessary, against a Russian-inspired revolution of the working classes.
According to this unfounded theory, not only do the reactionaries, by whom the
the British are clearly meant, oppose any suggestion that these tribes should
be disarmed, but they connive at the supply to them of arms and ammunition
and may even supply them themselves.
Finance.
62. Although over nine months of the financial year (which began on the
21st March, 1944) have gone by, the budget has not yet been passed by the
Majlis and Government expenditure has been authorised by votes on
account from month to month. Nor have the monthly figures of revenue and
expenditure been published, but this embassy is informed that those for the first
eight months of the year are as follows (figures for the preceding year are
shown for comparison) :—
1943-44.Q 1944-45.
63. The estimates for 1944-45 show a deficit of 611 million rials on the
Ordinary budget, and a surplus of 612 million on the Commercial budget. It
is impossible to say at the moment how the Commercial budget will turn out,
as the magnitude of the Government’s commercial operations, i.e., purchase and
distribution of food-stuffs and other goods over the remainder of the year, has
not yet been determined. It is clear, however, that the estimates for the
Ordinary budget have proved over-optimistic. In particular, receipts from
income tax will be very much below those estimated; so far they have been less
than for the same period in 1943-44, when the rates were considerably lower.
It seems hardly possible that expenditure can be kept to a sufficiently low figure
to compensate for this failure.
64. Sales of gold for the account of His Majesty’s Government have
continued during the quarter. The bulk of this gold is, as is known, smuggled
over the border into Iraq; and sales have varied according to the demand there
and in other Middle-Eastern countries, and the comparative ease or danger of
the smuggling traffic from time to time. The price is adjusted periodically to
the changing demand; but the market is a difficult one to forecast. The proceeds
of sales during the quarter have been equivalent to £1-57 million. The question
whether sales of gold should be continued has been raised separately.
65. The draft of the agreement covering the administration of the Persian
railway system since September 1941, which is to be presented to the Persian
Government by His Majesty’s Government and the Government of the Union
of Soviet Socialist Republics jointly, has still not been agreed by the Soviet
authorities in Moscow, although there can no longer be any possible points of
difference outstanding. It can only be concluded that the Soviet delay is
deliberate.
/i) The figures for 1943-44 differ to some extent from those previously given, and are indeed
the third set of figures produced. The differences are the result of adjustments made between
the Ordinary and Commercial budgets. It is to be hoped that the piesent figures are final.
i
Ordinary Revenue
Ordinary Expenditure
(million rials.)
2,871 2.582
2,263 ' 2,544
Surplus ...
608
38
Commercial Revenue
Commercial Expenditure
1,364
2,228
2,355
2,841
i
Deficit
864
486
t
Net Deficit
256
448
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