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realised, on the base of international prices, will assure the expenses of the exploi
tation and purchase of new machinery for an increased output : the surplus after
deduction of the expenses mentioned will be paid to the Treasury on account of the
Government.
In conclusion it is stated that up to the present only the region of Anarak has
been the subject of study and exploitation as indicated above, and these activities
continue. Recently important nickel mines have been found at Noval, Koud,
Korad and Tehareh Choureh, and it would not be surprising if other mines of
capital importance were found in this region. Studies in the last two years have
shown the necessity of engineers and technicians qualified for the exploitation.
In order to meet the situation the collaboration of foreign engineers was sought
and later technical schools for arts and handicraft have been established, the
“ Ecole des Arts-et-Motiers ” at Anarak having given good results.
Much remains to be done but the Government’s programme is expected to
bring about excellent results in this branch of industry which is of particular
interest to increase the prosperity of the country by bringing to light its sub
terranean reserves.
Tehran ; F. A. G. GRAY,
The 16th October 1937,
(87)
Letter from His Majesty’s Minister, Tehran, to the Foreign Office,
London, No. 410-E., dated 3rd November 1937.
I have the honour to report two interesting measures recently taken with a
view to strengthen the position of the Banque Mellie, Iran. The first was published
in the “ Etaleat ” of 26th October, and this was an announcement to the effect
that His Imperial Majesty the Shah had handed over all his hoardings of gold to
the Bank : the value was not mentioned nor is it clear whether an actual gift, or
merely a deposit was made.
2. The press at any rate applaud the royal gesture, which should serve as an
example to all patriotic Iranians who are invited to sell their gold to the bank and
thus assist the national economy and prove their love of the fatherland. In
view of the fact that there would appear to be a growing tendency to purchase land,
not only in Tehran but in certain provinces also, rather than to retain rials, it
remains" to be seen if the lucky holders of gold will prove to be patriotic enough to
exchange it for bank notes.
3. The second measure was a bill, signed by the Prime Minister and the Minister
of Finance, submitted to Parliament on the 28th October with a view to the sale of
part of the Crown jewels ; a copy of the text of the preamble and the bill, published
in the “ Journal de Teheran ” of the 31st October, is furnished herewith.
4. If these measures were taken with the hope of inspiring more confidence in
the stability of the country's finance it is possible, and probable, that quite a
contrary effect will be the result.
5. It is impossible to obtain reliable figures of the advances made to the Gov
ernment by the Banque Mellie, Iran, but from the last published balance sheet
of the bank, giving the position at 7th October last, the following items are shewn
as assets :
Rials.
“ Administrations Puhliques ” ., ,. .. •• 695,390,570’80
“ Fonde d’Etat et Actions ” .. .. .. •• 106,826,020’00
making a total of .. .. •. • • • • 802,216,590 - 80
or, at 80 rials to the £ about £10,027,770.
On the Liabilities side “ Administrations Publiques ” show a figure of rials
364,505,027—or about £4,556,300. In the absence of any official figures of the
Government’s debt to the bank, it may be inferred that the difference between the
figures quoted above, that is to say £5,471,470, may roughly be taken to represent
the Government’s indebtedness to the State Bank ; its commitments with the Agri
cultural Bank are not known.