Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎33r] (65/644)

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357. The commission appointed to assess the value of the s.ieikh s lands m
Khuzistan under the agreement of December 1930, left Tehran early in the year
and arrived at Ahwaz on the 18th February. Their investigations continued un i
the hot weather became unendurable; they then returned to Tehran and rendered
a report, on which no decisive action has been taken. To judge from the following
incident it appears unlikely that the sheikh will receive a fair value for his
Properties: a certain building at Ahwaz was valued by the commission at
15,000 tomans 10,000 Persian dinars, or a gold coin of that value. ; and as it was in the occupation of a branch of the finance
Department, a recommendation was made that the purchase-money should, be
handed over to the sheikh. The latter, although he did not agree t° the pi ice and
was not bound (under the terms of the agreement) to sell, saw that all the members
of the commission (including the Persian Government’s own representative) were
agreed on the price and made no objection. But no offer was made by the Finance
Department for some time; and, finally, a letter arrived suggesting that the sheikh
should sell for 5,000. The sheikh on his part appears to have done what he could
to facilitate the work of the commission; in April 1932 he sent his son,
Abdul Kerim, to Basra to extract the originals of certain firmans for the com
mission’s information. The sheikh is incensed to observe that the affairs of
Mirza Ibrahim Khan Qawam, who was treated in a similar way (i.e. his lands in
Fars were valued and an equivalent amount of land was given to him m other
parts of Persia), have been settled within the year, although the affairs of the
Qawam have been under discussion for a relatively short time.
358 Meanwhile, the sheikh exists on sums remitted to him by his trusted
agent at Basra, Mirza Muhammad, Khan Bahadur. It is not clear whether the
sheikh is fully aware of the difference which the newly-proposed istihlak tax on
the produce will make to his Iraq revenues. No protest in the matter appears
to have yet been made by him.
VI.— Internal Affairs (Economic).
(A) Finance.
Revenue and Expenditure (1931-32).
359 It has been found possible in the past to publish in each annual report,
under the above heading, a table supplied by the Ministry of Finance, to which one
dubiously pinned one’s faith faute de mieux. The Ministry this year, in spite ot
repeated entreaties to revert to ancient practice, broke new ground by furnishing
the Legation with the copy of an astonishing document which had been
transmitted to the Persian Legation in London, and which was intended to serve
as a reply to a questionnaire submitted by the London Stock Exchange
Intelligence in respect of the Persian financial year ending the 21st March, 19<L5.
This masterpiece unfortunately quotes the revenue and expenditure returns toi
1930-31 instead of 1931-32.
Budget 1932-33.
360. This budget was passed by the Majlis on the 13th March. Revenue
was estimated at 421,400,000 krans plus £787,000, and expenditure at
421 399,870 krans plus 407,176 pahlavis. The pahlavi is regarded as the
equivalent of the gold pound, while sterling during 1932 was officially reckoned
for Persian customs purposes as being at a discount of 30 per cenL m tei ^ s o
gold. 407,176 pahlavis on this basis of calculation equal £529,329, so tnat a
surplus of £257,000 seems to have been budgeted for.
361 It will be remembered that this is no consolidated budget. TJ 16
royalties continue to be credited to the Government’s reserves abroad and do not
enter into the budget; likewise the receipts from the bugar and Tea Monopoly,
which are paid into the railway fund, and that part of the Road Tax which
actually accrues to the road fund.
362 Revenue shows an increase of close on 100 million krans less £75,000
over the previous year’s budget. The most interesting section is that entitled
“ Receipts from Monopolies,” which includes two new items : commercial receipts
from transactions in sugar 74,713,530 krans and the same for matches
2 540 040 krans—the result of the monopoly of the supply of sugar and matches
accorded to the Soviets under the commercial treaty of October 1331, winch