Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎229v] (458/644)

9. With other countries Iran’s relations have taken a fairly normal course.
Difficulties have arisen with Germany owing to the considerable sums owing by
Iran under the clearing agreement. There have been minor troubles with the Soviet
Union owing to the Soviet Government’s suspicion of the commercial progress
made by Germany in Iran and their fear of Germany’s acquiring excessive
influence here. The Iranians seem, however, to be fully aware of this danger and
there is no reason to suppose that they have lost their old skill at playing off one
foreign Government against another.
10. The relations between Iran and the Soviet Union have further been
marred by one tragic episode. The Soviet Government in the early part of the
year decided to expel from the country all resident Iranian citizens, and they have
been arriving in batches throughout most of the year. The number expelled so
far is probably about 40,000. These unfortunate people arrive practically
destitute, and their lot is made worse by the fact that the Iranians suspect that
the opportunity has been taken to introduce Communist agents into the country.
The present policy is to send the refugees into the inhospitable areas of the south
and for large numbers of them there can be but little hope of survival.
11. The year 1938 produced one social innovation, a dinner given by the
Shah to the heads of foreign missions and their wives, at which the Queen and
Princesses were present. This event was heralded as a first step towards more
normal social relations between Iranians and foreigners in Tehran : it was
followed, rather typically, by a still further reduction of those who “ frequent
foreign houses.”
II.— Foreign Relations.
(A) British Empire — General.
(1) United Kingdom and India.
(a) General.
12. In March His Majesty’s Minister visited Bombay and New Delhi. At
Delhi he had the advantage of exchanging views on various Indo-Iranian questions
with the Foreign Secretary to the Government of India.
13. In the course of the year no further move was made from any quarter for
the negotiation of a new treaty between Great Britain and Iran. In the event of
the suggestion being renewed from the Iranian side, it was agreed that His
Majesty’s Minister should take the line that it would not be worth while
discussing a general agreement unless the Iranian Government were ready to
include in it a recognition of the relations of His Majesty’s Government in the
United Kingdom with the Arab rulers, and a renunciation of their claims to
Bahrein and the islands in the Gulf. Nor would His Majesty’s Government be
prepared to offer a quid pro quo for the surrender of claims that they believe to be
unfounded.
(b) Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
Bushire Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. .
14. On two occasions in the course of the year the political resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency.
proceeded to England for longish periods. On each occasion it was arranged that
His Majesty’s Consul at Bushire should discharge Sir Trenchard Fbwle’s duties
as Consul-General,, and that the acting political resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency. should continue to
reside at Bahrein. This averted the necessity of seeking the Iranian Govern
ment’s agrement for Mr. Weightman.
15. In September, when the possibility of a European war seemed imminent,
it was agreed that in the event of hostilities breaking out the political resident A senior ranking political representative (equivalent to a Consul General) from the diplomatic corps of the Government of India or one of its subordinate provincial governments, in charge of a Political Residency.
would require to transfer his residence from Iranian territory to the Arab side
of the Gulf.
16. The Iranian Government requested the transfer to them of a telephone
exchange situated at Bahmani which was being operated, at a slight loss, by the
Residency An office of the East India Company and, later, of the British Raj, established in the provinces and regions considered part of, or under the influence of, British India. . This exchange was, it appears, constructed by British authorities
during the Great War, and the Iranian Ministry of Posts had hitherto agreed to