Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎114v] (228/644)

(5) Germany.
288. In April the Court of Appeal upheld the verdict of the lower court
under which Dr. Lindenblatt (see paragraph 103 of the annual report for 1933)
was convicted of peculation and his five German assistants acquitted.
289. Herr Walter Horschitz-Horst, who had succeeded Dr. Lindenhlatt, did
not long survive him. The circumstances of his departure were tantamount to
dismissal, but were disguised as the non-renewal of his contract, though the
press explained that Tie left the country without a stain on his character. The
reason generally given for this step was that the Shah considered £5,000 a year
to he more than any foreigner was worth.
290. Herr Horschitz-Horst’s place was taken by Colonel Reza Quli Khan
Amir Khosrovi. The German chief accountant was also replaced by a Persian.
(6) Belgium.
291. In pursuance of the policy of getting rid as fast as possible of foreign
advisers, regardless of whether Persians are capable of taking their place, the
Persian Government dispensed with the services of several Belgian officials
during the year.
292. The first to go was M. Leon Smets, the Treasurer-General. No reason
was given for this step which came as a surprise to M. Smets himself, who on
his departure expressed himself as pessimistic on the subject of the financial
future of Persia. Four Belgian officials are still employed in the Ministry of
Finance.
293. The axe then fell on the Belgian customs officials, who have for so long
run the Persian customs. It was announced, without warning, that the contracts
of the eight officials would not be renewed, and they left the country almost
immediately. At the same time it was learnt that the Persian Government were
endeavouring to obtain the services of four Belgian advisers, who were, however,
not to act in an executive capacity as in the past.
294. The press paid considerable tribute to the work of the Belgian officials
“ who had trained Persians capable of succeeding them,” and M. Dekerckheer,
the senior official, was granted a pension of some £280 a year.
295. This happy atmosphere was spoilt by the action of one of the officials,
who, on his return to Europe, published an article in a Paris newspaper dealing
with the abrupt dismissal of the Belgians, which he attributed to the rage of the
Shah when shown a minute by M. Dekerckheer, in which the latter stated that no
Persian officials were sufficiently trained or sufficiently honest to run the customs,
and that they never would be until they were properly paid.
296. This article raised the inevitable storm in the Tehran press, and the
Minister for Foreign Affairs suggested that the Belgian Minister express his
regrets in writing to the Shah, which he duly did. Kazemi went on to say that
while the Persian Government had publicly expressed their satisfaction with the
services of the Belgian officials, they had in fact been guilty of serious irregu
larities. M. Paternotte replied that if this were so, the Persian Government
ought to insist on an investigation which might be conducted by the president of
the Swiss high court as an impartial judge. Kazemi then dropped the subject.
297. M. Paternotte also confirmed that M. Dekerckheer’s minute had in fact
been one of the causes of the dismissal of the Belgian officials. After this incident
there was, needless to say, no further talk of the engagement of Belgian advisers
for the customs, which are now entirely staffed by Persians.
298. In November a special embassy to announce the accession of His
Majesty King Leopold III arrived in Tehran. The special ambassador,
M. Ithier, who is the head of Electro-Beige, was accommodated with his party in
a private house taken over hastily by the Persian Government. After five days
of official entertainments the Ministry for Foreign Affairs made it clear that they
had no funds left and that bills would be presented for any further expenses.