Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎74v] (148/248)

4
10 th October, of which eight have been arrested. Df the original 162 names,
thirty-five had been proposed by the Russians. We have sufficient evidence of
our own against six of these to warrant their being interrogated at Sultanabad,
but against the remaining twenty-nine (of w T hom eleven are still at liberty) we
have no evidence whatsoever. The Soviet Charge d’Affaires asked the Prime
Minister with my support to have eight of the thirty-five sent to Resht for joint
Soviet and Persian interrogation, but in regard to the rest of the suspects on
their list the Russians were doing nothing, although the Soviet Embassy and the
Soviet seem ity authorities have been repeatedly asked to take part in the enquiry
at Sultanabad when suspects on their list come up for examination or to produce
evidence against them. Finally I wrote to the Soviet Charge d Affaires on the
3rd November to the following effect. To bring suspects up for interrogation
at Sul tana bad without producing evidence would make a bad impression on the
Persian authorities. We had our own evidence against six suspects on the
Russian list, and the Soviet authorities were going to interrogate some at Resht.
1 he remainder on the Russian list who were under detention at Sultanabad
should, I suggested, be released on the 12 th November unless the Soviet
authorities could agree either to take part in their interrogation or take them over
for such action as they might think fit. On the 10 th November the Soviet Charg 6
d Affaires promised me to do his best to solve the question to our mutual
advantage, and asked me to take no action until the 20 th November. On the
19th November he told me that the Soviet authorities agreed in principle, but
wanted a few days’ respite while the necessary premises at Resht were beino a- 0 t
ready by the I ersian Governor. I asked him to put this in writing and he said
he would do so at once. I have, however, received no such communication at the
time of closing this despatch. It is proposed to give M. Maximov a few days and
then to inform him that action can no longer beMelaved, since the reputation of
His Majesty s Government for judicial fairness cannot be left dependent upon a
Persian official, whose zeal His Majesty’s Legation have no means of stimulating.
Economic and Financial.
/
17. Between the 25th August and the 23rd October, 1943. currency notes in
circulation rose by Rials 527 millions to Rials 4,914.17. Allied* military
expenditure (still on a substantial scale, though less than a year ago) and Govern
ment borrowings to meet the cost of essential services (for example, the purchase
ol the wheat crop) have created the need for this 1 new money.”
, during the two months the Index of Wholesale Prices in Tehran rose
from 600 (23rd August) to 669 (23rd October), and the Cost of Living Index for
all Persia from 980 (23rd August) to 1,088 (23rd October). During the last two
oi three weeks however, there are signs that bazaar commodity prices are
weakening Wholesale prices are tending downwards, although the relief has not
yet been felt in the retail markets. To some extent this tendency can be attributed
to the growing belief that the end of the war is now not far offhoarders of stocks
oi consumers goods are showing a disposition to unload, fearing that the existing
stringency in the supply situation may shortly come to an end. 'The arrival in the
interior of stocks of consumers’ goods that have lain for months in the Gulf ports
has caused some anxiety to the hoarders, and has contributed probably more than
anything else to the downward tendency in prices. Approaches have actually
been made by more than one prominent Tehran merchant to the British officer iii
cml movements at Ahwaz, begging him not to display too much zeal in
the discharge of his duties. Moreover, goods are now being railed up with
increasing promptness and regularity at the recognised tariff rates, instead of
having, as hitherto, to incur the exorbitant black-market charges for transport
by road or to pay heavy bribes to Persian railway officials for priority. P
. 1 . i ' " hue these signs and tendencies are encouraging, the situation never-
heless remains grave, and the internal price level is still to-day probably higher
than m any other territory in the Middle East. ' "
tion and M 'nT^^ 00 ' 111 " 1168 t0 fi ° ht in face of much obstruc
tion and with little effective help. His mam general objectives are two: first to
make available in the markets such goods as there are in the country and
secondly to do what he can to “ mop up ” the supply of excess purchasing power
The first is a problem as much of distribution as of supply- and the steps which
are being taken are discussed in paragraphs 29 to 33 below P
21 With the second object in view, Dr. Millspaugh many months aim
prepared and presented to the Majlis two Bills, one authorising an issue If
Treasury Bonds to the amount of 500 million rials, and the other a measure to