Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎336v] (672/749)

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Polish Interests.
15. Ihe new Polish Charge d’Affaires, M. Eugene Melnitsky, has taken over
the Polish Legation on behalf of the Warsaw Government from the Persian
Ministry for koreign Affairs. His predecessor, owing allegiance to the Polish
Government in London, had refused to hand over to M. Melnitsky.
Tehran, 23rd September, 1945. M.
Appendix A.
Disposal of Assets — Persia.
1. Railways.
(i) The present position as regards British assets is that an impasse has been
reached. I he Persian Ministry of Communications stand by the draft agree
ment made in 1942, by which all fixed assets should revert to them free of charge.
Unfortunately, the draft agreement was never ratified and, although the British
representative on the transportation Committee defined what he conceived to be
fixed assets, i.e., only the actual buildings, there is no record that any agreement
on this point was reached with the Persians. The result is that the Persian
Railway Commission have so far declined to discuss prices unless it is conceded
that fixed assets should revert to them free of charge. It is hoped that the position
will be clarified in a few days’ time.
(ii) The Americans have also reached a deadlock. They offered their loco
motives, freight wagons and oil-tank wagons for sale, but failed to receive any
firm offer from the Persian authorities. They have accordingly instructed the
P.S.R. to remove all their rolling-stock south for shipment elsewhere. The
American locomotives could, at a pinch, be replaced by British locomotives, but
these are of a small type and unsuitable for Persia. Also, British freight wagons
are open-sided, whereas box-cars are needed. The most serious aspect of this
matter is, however, the withdrawal of the oil-tank wagons. The Persians them
selves possess only 303, and to maintain adequate oil distribution a minimum of
580 and a maximum of 716 are needed. The withdrawal of the American oil-tank
wagons would lead to a total breakdown in oil distribution this winter. Repre
sentations have been made to London and Washington, asking the Americans to
reconsider their attitude.
(iii) The Persian Government have claimed from the British militarv
authorities (but not from His Majesty’s Embassy) the sum of £7 700 000 in
respect of freights in excess of the £16,500,000 which has already been paid since
1942 to keep the railways running. They are likely also to lodge an additional
claim in respect of passenger traffic. The Persian Government are not making
the question of purchase of railway assets contingent on the settlement of their
claim for excess freights. What they have done so far is to decline to discuss the
question of purchase of what they conceive to be fixed assets.
2. Telecommunications.
The Persian Government want to buy the entire pole and line system, includ
ing the American section, representing some 31 per cent. The latter is, however,
not for sale. They also want to buy the entire carrier installations. The British
Military Disposals Board asked an over-all price of £400,000, and the Persians
offered £200,000. A final offer of £300,000 was then made, and they were
informed that, unless they accept it by 1 o’clock on the 23rd September, the British
military will dismantle the pole and line system and ship the carrier system out of
the country.
3. Other Pieced Assets.
The disposal of camps, cinemas, &c., in the North Persia area is proceeding
normally. Satisfactory offers have been received for all installations offered for
sale by public adjudication. Prices realised have been quite satisfactory. An
agreement with the Persian Government has been reached about the payment of
customs duty and a claim from the Ministry of Finance for the payment of sales
tax has been rejected, as this tax is payable by the seller, and the British conten
tion is that one Government cannot levy taxes against another Government.
4. Mobile Assets.
The sale of these by public tender is proceeding normallv.