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850 reichsmarks, or 5,480 rials, Iranian currency being accepted for bookings fi om
Tehran. To prevent competition with the Iranian air service, no passengei
bookings between Tehran and Bagdad were allowed: as regards mail, outwaid
mail from Tehran had to be sent by Iranian service as far as Bagdad, where
mail for the United Kingdom was transferred to Imperial Airways, and that for
westward destinations on the Lufthansa route to the Lufthansa, whose machine
for the greater part of the year left Tehran on the same day as the Iranian
service. As far as is known, a certain amount of inward mail from Berlin was
brought direct to Tehran by Lufthansa.
IV. —Military Affairs.
The Army.
General.
184. This year the General Staff have given serious consideration firstly
to the complete reorganisation of the system of supply and maintenance
(“ Service de VIntendance ”) of the army, and secondly to the preparation of war
defence plans. The defence of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ports and of opposing a
subsequent advance inland has been carefully studied as also the siting of defence
works on the frontiers of Iran generally.
185. Fair progress has been made in tactical training throughout the army
especially among infantry and cavalry units. The artillery arm still, however,
lags behind both in practical training and tactics. Throughout there is still an
entire lack of co-ordination between arms and co-operation between units of the
same arm.
186. In spite, however, of the progress made, and the large sums expended
on modern war material, the Iranian army would still be of little value in war
and no appreciable improvement can be looked for in the near future. Further
progress could undoubtedly be made if the Iranian Government would continue
to avail itself of the services of foreign military missions and technical advisers,
but it is proposed to dispense with these expensive and humiliating encumbrances
as early as possible. This is fully in keeping with Iranian national conceit which
remains an obstacle to the attainment of practical efficiency.
Expenditure.
187. In the estimates for the Iranian year 1317 (21st March, 1938, to the
20th March, 1939), the credit provided for the Ministry of War is 392,071,956
rials or about £4,900,899 at the present rates. This sum includes provision for
the navy and air force, for which no separate heads are shown. It represents
an increase over last year’s figures of 82,163,576 rials (£1,027,044). 1,150,500
rials (£14,381) has been provided for expenses in connexion with conscription,
an increase of 750,500 rials (£9,375) over last year’s figure. For the road and
frontier guards (Amnieh) department 30,678,400 rials (£383,480).
188. An additional sum of 9 million rials (£112,500) has been voted for
the construction of a gas mask factory An East India Company trading post. in the vicinity of Tehran.
189. The extra grant of £2 million from Government reserves which was
omitted from last year’s budget allotment was, however, again voted this year.
190. The grand total for military expenditure is therefore in the neigh
bourhood of £7 million, or approximately 26 per cent, of the total budgeted
expenditure of the country.
Strength.
191. The strength of the Iranian army as estimated on the 1st June, 1938,
was 105,702 all ranks. This figure is virtually the same as last year. Little
further increase is probable beyond bringing formations, especially the artillery
and armoured fighting vehicles arms, up to a uniform establishment. Further
expansion of the air force is, however, envisaged.