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the Persian Government. The note reminded the Persian Governmment that the
United States Government only assented to the engagement of Dr. Millspaugh
and his assistants because the Persian Government insisted and undertook to
support them. The object was not to provide a political buffer but to afford
economic assistance. The note added that harmony was essential and if the
Persian Government did not want assistance the United States Government did
not intend to press it upon them. The Persian Government in their reply declared
(quite falsely)^ that they had given full support to Dr. Millspaugh. On the
22nd June the Prime Minister brought before the Majlis a Bill providing for
the repeal of the law which gave Dr. Millspaugh his powers and providing for
the transfer of these powers to the Ministry of Finance and other Ministries.
The next day Dr. Millspaugh tended his resignation. At the same time the
Road Transport Department, which owing to the failure of the Persian Govern
ment to appoint a Persian president now consists of British and Americans only,
decided that until the situation cleared, a consignment of about one hundred
Lease-Lend lorries which had arrived for the Persian Government should not be
issued (there was justification in this in that the Persian Government have paid
for very little of. the Lend-Lease material received, and that if Dr. Millspaugh
went, the Americans who are running road transport for the Persian Government
with some success would leave with him). The Persian Government were severely
shaken by this and by the prospect of incurring the serious displeasure of the
United States Government, and at the end of the period under review it was
virtually certain that the difference between Dr. Millspaugh and the Persian
Government would be composed.
17. It need hardly be said that His Majesty’s Embassy have given
Dr. Millspaugh their full support and would regard his departure as a calamity,
in spite of his faults (which would prevent his receiving our full support if he
was a British subject).
Soviet Interests.
18. The new Soviet Ambassador, M. Constantin Mikhailov, who had
presented his credentials in January, left Persia in May ostensibly for medical
treatment and has not returned. There is ground for suspicion that his departure
was not due to illness alone. The Persian Prime Minister saw the Ambassador
the day after the Persian Government had refused to accept the conditions
attached to the offer of war material made by Stalin to the Shah at the Tehran
Conference, and he found the Ambassador “ looking like a man condemned to
death,” yet maintaining that he was perfectly well. From that moment the
Ambassador was never seen again except presumably by Russians, and it seems
likely that he had fallen into disgrace for failing to complete a transaction
initiated by Marshal Stalin himself. Neither the British nor the American
Embassies regret his departure. He was cold and suspicious, and they failed to
get a word out of him either for or against anything they said. M. Mikhailov has
been succeeded by the former charge d’affaires, M. Maximov, who is an old
Persian hand and a clever intriguer, but is human, has a sense of humour, and can
often be teased into taking action. The change therefore is for the better.
19. The Persian Society for Cultural Relations with the Soviet Union has
issued some impressive statues, but so far little appears to have been done to
implement the programme laid down in them, and the sole activity has been to
organise classes for learning Russian; about ninety persons have been enrolled
so far. It is too early to estimate what response the Persian public will give
to the new society once it has begun to function properly. In Isfahan Russian
is being taught to Armenian schoolchildren.
Polish Interests.
20. At the opening of the period under review there were about 8,200
Polish refugees in Persia. Since then some 300 boys and girls have been incor
porated into the Polish army in the Middle East as enlisted bo}^ and P.S.K.
(= A.T.S.), and about 1,100 have left for India and other destinations overseas.
There are thus about 6,800 at the present time, and this number should be reduced
by about 1,000 in the course of the next few days by the departure of another
group for India.
21. Of the 5,800 odd then remaining, about 2,000 will be in Isfahan, 2,800
in Tehran, and 1,000 in the transit camp at Ahwaz.
22. The period has been generally devoid of incident, and the health of
the refugees has been satisfactory. The arrival from Soviet Russia of a mission
of Poles masquerading as Polish Patriots does not appear to have had any
influence on the Polish community.