Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎107v] (214/644)

18
with a request that Ilis Majesty’s Minister be instructed as to what reply he
should make. No instructions had been received by the end of the year, except
in regard to one case where the Government of India stated that they were unable
to agree to extradition in the absence of an extradition treaty.
(c) Land Customs and Embarcjos.
153. After some further discussion (see paragraph 291 of the annual report
for 1933) it was decided to impose an embargo on silver on the whole western land
frontier of India. At the same time an embargo was placed on the entry into
India through Las Bala or Kalat of the following goods : piece-goods of cotton,
silk, artificial silk or mixtures, sugar, alcoholic liquors, cigarettes, saccharine.
Ihese goods were, however, still allowed to enter via Nok Kundi and, since some
ol them were produced in Persia, there was thus no infringement of the Tariff
Autonomy Treaty of 1928. It is true that silver has, at any rate up to 1926, been
mined in Persia, but only in the smallest quantities and as it happened the Persian
Government never invoked the Tariff Autonomy Treaty.
154. The Nok Kundi route had been much used by merchants who wished to
avoid the Indian customs duty on silver and who shipped it across Persia in
transit. At the moment the embargo was established, considerable consignments
vvere actually lying at Zahedan or on their way across Persia, and the Persian
Charge d Affaires in London represented that in view of the fact that the embargo
had been established without warning, much hardship was being caused to
exporters and asked that the embargo be raised for six months. After some
discussion he was informed that the Government of India could not agree to the
temporary suspension of the embargo owing to the loss that would result to
Indian revenues. Ihe difficulty was, however, met by an agreement reached Yvith
the I eisian consul-general at Delhi, by which importers of silver were to pay an
amount equal to the sea customs duty when the silver was entrained at Nok Kundi.
155. In October it was disclosed that there was a considerable traffic in
precious stones across this frontier and as diamonds are not a product of Persia,
^ ov A eriimen ^ I n dia considered that an embargo would not infringe the
Tariff Autonomy Treaty. After consultation with London, the embargo was
established in November with the proviso that diamonds confiscated in the first
inrporte? by °se 1? ^ Iedeemed 011 P a y ment of the duty payable had they been
n 15 u 6 i ^ eanw il 1 e a fc ? ta ^ embargo had been placed on the importation over
the whole western 1 arid frontier of Japanese piece-goods, unless covered by a
certificate issued by the Department of Commerce and Industry in Japan This
embargo was part of the general embargo on all Indian land and sea frontiers.
fU f ^ ec T etar y of State : f° r India approved in November the proposal
that a limited and customs regime be established. It was considered best to
appi} this to all land frontiers and not merely to the Persian frontier. The
Governments of Nepal and Afghanistan were warned that this measure was in
contemplation but His Majesty’s Minister stated that, in his opinion the past
behaviour of the I ersian Government absolved the Government of India’from any
obligation to warn them. any
158. At the end of the year an official of the Ministry of Finance approachec
the commercial secretary verbally with a suggestion that the Persian Governmenl
would be willing to prohibit the transit trade through Persia of any articles whicl
the Government of India wished to exclude, provided normal and local trade ir
I ei si an products was left free. This suggestion was communicated to the
the ™ ’ but n ° f0rmal P ro P° sals ha d been received by the close of
(d) Zahedan Railway.
■ A 5 . 9 , Th f Fenian Government did not revert to the question of the reopen
ing of the railway until the very end of the year. The Minister of Finance then
approached His Majesty s Minister privately through the Anglo-Persian Oil
Company with the suggestion that they might meet and discuss the matter He
tradrwith^InX 111 K A° rasan al j d had been impressed with the need of increasing
tiade with India. Moreover, he suggested that the reopening of the railway