Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎100v] (200/248)

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M. Soheily’s Government.
15. In my despatch No. 80 of the *25th February, I gave some account of the
events which finally led to the reassumption of power by M. Soheily. The new
Cabinet is probably as good a team as can be found in present circumstances, and
the recent appointment of M. Tadayyon, previously Minister without Portfolio,
to be Minister of Food Supply, has added to its strength. The Prime Minister
has sought to reinforce his influence with the Majlis by the formation of a body
of fourteen Deputies who will meet the Cabinet periodically and maintain contact
between the Government and the Chamber. The Government have shown courage
in asking the Majlis to grant very wide powers to Dr. Millspaugh for the control
of prices, and have inevitably encountered opposition. The proposed powers
would give Dr. Millspaugh control of everything concerning the purchase of
merchandise, other than food-stuffs, including importation, transport, ware
housing and distribution. He would wield all the powers conferred on the
Government under the anti-hoarding law and other legislation for the control of
internal and external trade. He would be empowered to require returns of
existing stocks, to issue licences for the manufacture and sale of goods, to
confiscate stocks with compensation to owners, and in general to do all that he
considered necessary to stabilise prices and ensure fair distribution. Finally, he
would have power to make regulations having the force of law. The measure is
naturally being attacked by the hoarders and profiteers, and some sections of
the press have condemned it as being inimical to Persian national independence.
Food-stuffs have been excluded from the purview of the Bill as falling within
Mr. Sheridan’s province, but legislation has been introduced to prevent the
forward buying of crops by speculators.
16. A few days ago M. Soheily delivered a New Year broadcast, in which
he exhorted his compatriots to make sacrifices in the interest of final victory,
and to co-operate with him in realising, under war-time conditions, a greater
measure of social justice. He outlined "a ten-point programme, which included
not only measures for the control of prices and the elimination of hoarding, but
•also “the establishment of justice and equality in the distribution of wealth;
improvement of conditions for Government employees, peasants and working
classes by means of insurance and compensation schemes; the development of
public health and medical facilities and effective primary education throughout
the country.” It remains to be seen how far M. Soheily can be trusted to pursue
these ideals. But his message is certainly a step towards the reforms of which
Persia is so sorely in need. In this he has the full support of the Shah. The
huge fortunes which have been amassed during the past year by the few, and the
acute economic distress of the masses, which is now aggravated by a tvphus
epidemic have undoubtedly produced a situation in which the existing regime
feels itself threatened. On the one hand, the Tudeh party has greatly increased
its activity, with the formation of new cells and the dissemination of Socialist
propaganda on a wide scale. On the other hand, thete is a definite movement,
although not strong at present, to bring back Seyyid Zia-ed-Din Tabatabai from
Palestine A number of Deputies have recently travelled through Palestine,
ostensibly for their health, but possibly with the intention of seeing Seyyid Zia.
An active propaganda is being carried on, representing him as the only man who
can save Persia, and his supporters maintain that the time will be ripe for his
return this month if the Shah’s suspicions can be allayed. Court circles make
no secret of their fear that Seyyid Zia might put an end to the Pahlevi dynasty
or. at all events, greatly curtail the influence of the Crown.
17 in this situation the Government is not optimistic about the approaching
general election, and the Prime Minister is considering whether he would not do
well to postpone it until after the war. He is putting off a decision on the grounds
that the Soviet Embassy might object to postponement. I he probability that
elections will be held this year faces his Majesty’s Legation with a delicate
problem It is natural to suppose that the Soviet authorities will use their
influence in their zone to secure the election of candidates more or less subser
vient to their views, and the question arises how we can counterbalance this by
influencing the elections ourselves in other parts of Persia without giving cause
for complaint to our Soviet Allies or cause for misunderstanding to the Americans
With your approval I have instructed His Majesty s consular officers to watch
the situation closely and to study ways of supporting and encouraging candidates
'from among the younger and more progressive elements who have some public .
spirit and are ready to sponsor a real programme of reform as opposed to an
extremist policy.