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some preference for Germany—of what nature is not stated. The Shah is said
to have given a very guarded reply, declaring his intention to maintain
neutrality.
(v) It is stated on reliable authority that an organisation under the auspices
of the German Foreign Office exists in Afghanistan of representatives of Moslem
^tricts in Russia, who are engaged in working out schemes for creating internal
tTouble in the Soviet Union. Bokhara, Khiva, Samarkand and Erghana are said
to be disaffected and ripe for revolt.
13. Hungarian Interests.
Reference Intelligence Summary No. 5 (current), paragraph 7. It appears
that Count Almasy wishes to enlist the personal influence of King Farouk of
Egypt with the Shah for his scheme for a flying school in Iran. It is understood
that the scheme would be discouraged both by His Majesty’s Legation at
Bucharest and His Majesty’s Embassy at Cairo, and in any case it is unlikely
that it would be approved by the Shah. So far nothing has been heard of the
scheme in Iran.
14. Soviet Interests.
(i) On the 14th March it was officially announced in the Iranian press that
a commercial treaty had been concluded and initialled at Moscow by representa
tives of Iran and the Soviet Union. The signing of the treaty will take place
shortly in Tehran.
Iranian official circles express considerable pleasure at the news and the
Foreign Minister, his Excellency M. Muzaffar ATam has openly boasted that,
since his taking over of the Ministry for Foreign Affairs, negotiations have
proceeded smoothly and been brought to a successful conclusion. He has also
stated that he was pleased, firstly, because it was a pact with Russia, and also
that it would be the second Russian pact that he personally would sign. (He
had signed one as Minister of Trade.)
The Shah has decorated the Foreign Minister with the First-Class Order of
the Humayun. . . . .
(ii) All ex-Russian subjects in Iran are to be issued at once with identity
papers and will not be obliged to report to the police as heretofore.
(iii) As a result of the Soviet-Iran Commercial Treaty many goods have been
lowered in price in the bazaars, viz., tea. lamp glass, cotton piece-goods. &c.
15. The Steamship Aramistan.
Reference Intelligence Summary No. 3 (current), paragraph 5. The reason
for not publishing at once the news of the torpedoing of the steamship
Aramistan was that no one dared to tell the Shah that it carried sugar and rails
for Iran. When His Majesty’s Minister’s letter was received at the Ministry
for Foreign Affairs the “ fat was in the fire ” and the Shah had to be informed.
It is said that when unpleasant news has to be told to the Shah, it is left
to Haji Reza Rafi (Maqan-ul-Mulk), who is in effect the Court Jester!
16. The Iranian Press.
Fditorials have recently appeared in the official Ittela’at, entitled “The
Solidarity of Oriental Peoples,” “The Unity of the Orient.” These articles
are probably intended to reassure Iranians reading of the Irano-Soviet pact that
Trail has not thereby entered the Russian orbit and abandoned the Saadabad policy.
A further editorial, dated the 21st March, was entitled “ Hypocritical Compli
ments ” This may refer to the fulsome and nauseating praise and flattery of
His Imperial Majesty the Shah and Iran from the Berlin broadcasts in Persian
during the Imperial'Birthday and New Year celebrations.
H. J. UNDERWOOD, Lieutenant-Colonel,
Military A ttache.
Tehran, March 23. 1940.