Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎54r] (107/749)

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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
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December 11, 1942.
Section 1.
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R. Billiard to Mr. Eden.—{Received December 11.)
(No. 395.) . > . ?
HIS Majesty’s representative presents his compliments to His Majesty s
Principal Secretary of State for Foreign Affairs, and has the honour to transmit
herewith a copy of Intelligence Summary No. 47, for the period of the 18th to
the 24th November, 1942. compiled by the military attache to this legation.
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Copy No. -- -i £■
Tehran, November 24, 1942.
(Secret.)
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Enclosure.
Military Attache's Intelligence Summary No. 47 for the Period November 18-24,
1942.
Persian A ffairs.
Political.
DURING the week the situation led to a serious crisis between the Prime
Minister and the Deputies. It centred around the question of a further issue of
currency, but was made the occasion for a serious attempt to overturn the
Government. After much lobbying the Prime Minister came to the conclusion
that business could not be done by normal methods, and that he would challenge
the Majlis by asking for full powers in certain matters. The Bill he presented
to the Majlis asked for full powers to deal with questions of food, transport,
security and the stabilisation of prices. At the same time he presented another
Bill which would transfer the authority of the Majlis to sanction new issues
of currency to the Currency Commission. The latter Bill was passed after a
lengthy session. The approval of the Deputies was probably influenced by the
belief that further delay would bring about some forcible action by the Allies,
possibly the closing of the Majlis.
2. In his speech introducing the Bill asking for full powers (mentioned
in paragraph 1 above), the Prime Minister mentioned the following points :
{a) The British had agreed to increase that proportion of the sterling •
balances of the Persian Government, as ascertained quarterly, which
is convertible into gold from 40 per cent, to 60 per cent.
(b) If the pound was later found to be over-valued in terms of rials, there
was a hope of securing a readjustment of the rate of exchange.
{c) The Allies had agreed to bring 25,000 tons of wheat to Tehran, and, in
addition, to import as was found necessary sufficient wheat to make
up the deficiency of local supplies until the next harvest.
There is likely to be strong opposition to the Bill, and it seems that a
j determined effort may be made to turn out the Government.
3. Recent Allied victories have greatly affected public opinion, and, while
it cannot be said that anti-British feeling has greatly diminished, there is a
noticeable increase of respect .for the Allies. Perhaps from fear of dissolution,
certain leaders of Majlis parties are now eager to assert their desire to co-operate
with the Allies.
Currency.
4. The new Currency Bill, of which a translation is given in an appendix
to this Summary, should remove the difficulties hitherto existent in obtaining
sufficient rials for British expenditure in Persia and will avert a recurrence of
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