Coll 28/67 ‘Persia. Annual Reports, 1932–’ [‎281r] (561/644)

7
A mericcin Interests.
23. American advisers in the different branches of the Persian Adminis
tration played a prominent part during the year and in spite of the constant
obstruction with which they were faced from vested interests and other circles
succeeded in making considerable progress. Dr. Millspaugh arrived m February
to take over the post of Administrator-General of Finances and gradually built
"^p around him an American staff and organisation to enable him to cope with
the chaotic state of the country in the financial and economic fields. Transport,
finance, cereals and other civil supplies all presented serious problems and as the
result of the co-operation eventually established between this legation and the
American authorities many obstacles were overcome and adequate organisations
set up to deal with important issues. On all occasions the American advisers
could rely on our warm support and sympathetic understanding ot their
difficulties. . , . , • ^ i ^
24. Close contact was maintained by this legation with Mr. feheriaan,
the American Food Adviser, in his efforts to feed the country, provide for the
maximum possible collections for the next harvest, and secure funds and transport
to put his plans into effect. He had the benefit of our constant advice, and Oi
officers, but he proved unequal to the task and m August he resigned. He was
replaced by Mr. Crawford as Chief of the Cereals and Bread » ection. he Alheu
Road Transport Board, with Anglo-iVmerican-Persian representation, which had
been set up to remedy the defects in the Persian civil transport system and to
supply lorries, &c., under a system of control to the Persian Road 1 ran sport
Department, worked harmoniously and in spite of disappointments, did much to
improve conditions. Mr. Birkle, head of the department, left m the summer,
and pending a permanent successor, was replaced by Mr. \ivian and the stall
was strengthened by the addition of several Anglo-Saxon assistants. I he Angle
American control of civil supplies has also operated smoothly.
25. Dr. Millspaugh has proved an honest and conscientious public servant.
He has, unfortunately, suffered from bad health, and his inelasticity of vision, his
tendency towards centralisation and his failure, due in part to ignorance of any
language but English, to establish direct contact with and to consult more ireelv
competent Persian authorities before reaching decisions, have at times exposed
him to strong criticism. In addition he has had to lace the inevitable opposition
on the part of the Russians, who are suspicious of any developmert of American
influence here. Similar difficulties have been experienced by the American
military advisers. In spite of this Dr. Millspaugh has much to show to his credit,
as a result of his uphill struggle. He obtained special powers and secured the
passage of the budget and Bills for the reform of the income tax law, the
provision of sixty American advisers, the issue of Treasury bonds, &c.
26. The transfer of the control of the operation of the Trans-Iranian
railway from the British to the American authorities was completed on the
1st April Responsibility for the security of the line and allocation of tonnage
were still vested,, however, in the British authorities. Although at first some
dislocation of traffic necessarily occurred, the handling of the railway has proved
efficient, whilst the co-operation which we obtained from the American army
authorities in rounding up Persian suspects on the railway in August could not
have been more effective. By the end of the year no agreement similar to the
Tripartite Treaty of 1942 had been signed by the American and Persian Govern
ments to regularise the position of American troops in Peisia. dhe terms of an
American-Persian Financial Agreement have been drawn up and in operation
for some time. According to the agreement, which has not yet been signed, the
United States authorities provide the Persian Government with dollars against
all rials required by the United States and are ready to exchange all these dollars
for gold. It has been made clear to us that it is not the intention of the American
Government to vary the rate of exchange without prior consultation with His
Maiesty’s Government. . . . TTr . .
27. An American-Persian Commercial Agreement was signed m Washington
on the 8th April. . ^
28. In spite of the rather shifty and weak attitude of the United States ^
Minister our relations with the United States Legation have, on the whole, been
very satisfactory, in fact, far more so than those existing between the United
States Legation" and their own military. These have been marked by a distinct
coldness and, have frequently been the subject of complaint to me by my United
States colleague and of hints by the American General Officer Commanding. In
a country like Persia, where whole-hearted collaboration is all important in Allied
assistance in the provinces through the labours of our consular liaison