Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎91r] (181/248)

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THIS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY’S GOVERNMENT
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PERSIA.
SECRET
[E 2602/38/34]
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4 -jysi 1343
May 6 . 1943.
Section 1.
Copy No. 116
Sir R Bullard to Mr. Eden:—(Received §ih May) ‘^ j£* •
(No. 156.)
HIS Majesty’s representative presents his compliments to His Majesty’s
Principal Secretary of State for Foreign Affairs and has the honour to transmit
herewith a copy of record of conversation of Minister of State with the Shah,
at Tehran, on the 15th April. 1943. ^
Tehran. 20M April, 1943. 1
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Enclosure.
Record of a Conversation with the Shah, loth April, 1943.
I HiVD a private conversation lasting an hour and three-quarters with the
Shah to-day. Mr. Hopkinson was also present. His Majesty was extremelv
friendly, and, as I had found him before, simple and straightforward. The
following are the main points which emerged from the discussion :—
( 1 ) Social Reforms.
The Shah said that he attached the greatest importance to the carrying out
of effective reforms in Persia. If people were poor and had no stake in the
country, there was no incentive among them to resist external aggression. Of the
17 million population of Persia probably not more than 20,000 were able to lead
decent lives. The conditions of the peasantry are now so bad that they might
easily lead to actual revolt. He was considering plans both for immediate
execution and for the post-war period.
As regards the present, he was encouraging a proposal that three-fifths of
he yield of the land tilled by the peasants should be handed back to them, and
only two-fifths given to the landlord, instead of, as in the past, in some cases
only one-fifth being left to the peasants. As regards the future, he had plans for
breaking up the large estates and distributing them to the peasants on a
co-operative basis. At the moment only some 20,000 persons in the country could
be said to be living a tolemble existence. Certain landowners had properties
which were practically whole provinces. There was no reason for any man to
own more than two estates. I said that reforms of this nature, which entailed
considerable expenditure on the part of the State, were things, in my mind, for
the post-war period, as the country had very great economic and financial burdens
at present. The Shah agreed that such reforms could not be carried out in war
time, when the country could not stand too great shocks.
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(2) Economic and Financial Affairs.
I emphasised strongly to His Majesty the dangers of the immediate financial •
and economic situation. It was essential that the Persian Government should
face up to the problem and take drastic steps to put their house in order. The
present economic and financial drift had to be gripped and checked. I referred
to the Bill before the Majlis for the grant of powers to Dr. Millspaugh. and to
the imperative necessity of taking effective measures for collecting this year’s
wheat crop.
The Shah agreed, and said that he thought Dr. Millspaugh’s powers would
soon be granted by the Majlis. As regards the wheat scheme, there was a plan
by which the Government should take 60 per cent, of the crop, leaving 40 per cent,
to the owner or cultivator to dispose of as he wished. Mr. Sheridan was not
entirely in accord with this. The Shah pointed out that Government intervention
in regard to the collection of wheat, e.g., in Khorassan and Kerman, had led to
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