Coll 28/65 ‘Persia. Perso-Soviet Commercial Relations.’ [‎226r] (452/482)

4
THIS DOCUMENT IS THE PROPERTY OF H
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S GOVERNMENT
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PERSIA.
CONFIDENTIAL.
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! 2154
I ebmarv 27. 1933.
(fl/^ C '
Section 5.
No. 1.
Mr. Hoare to Sir John Simon.—(Received February 27.)
(No. 90.)
Sir, Tehran, February 10. 1933.
I HAVE the honour to inform you that more recent information throws a good
deal of doubt on the most satisfactory^nature of the interview which took place
between the Persian and Soviet delegates on the 3rd January, to discuss the
situation arising out of the boycott and picketing of the Soviet trading and
transport organisations in Gilan, as reported in paragraph 7 of my despatch
No. 11 of the 12th January last,. While the boycott remains in force—it has in
fact been extended to all or most other provinces—the picketing to which the
Soviets, quite understandably, objected most strongly is a thing of the past. The
Shah's rice has also been shipped to Baku, which has inspired an optimism in the
individual rice grower and merchant which may well prove unwarranted. But
it seems very unlikely than any intimation has been given to the Persian Govern
ment of the Soviet Government's readiness to contract for the purchase of
stipulated quantities of staple Persian products ahead. The Persian authorities'
attitude appears to be one of nervous apprehension in regard to the outcome of
their eventual negotiations.
2. Neither do the Persian Government give signs of having abandoned their
idea of entrusting all commercial dealings with the Soviets to one central
organisation. They should rather be suspected, with the approaching return of
the Soviet Ambassador in mind, of having fostered the agitation which Persian
merchants have been conducting in favour of the policy of centralising trade with
Soviet Russia in an increasing volume of resolutions, open letters to the Prime
Minister and complaints voiced in the press of the Government's inaction.
3. The attached account of a statement which is alleged to have been made by
the Prime Minister to a local carpet dealer with whom he appears to be on terms of
friendly indiscretion, and communicated by the latter to the commercial secretary,
is interesting. It begins by giving in a succinct form the well-known Persian
objection, or one of the main objections, to direct transactions between the Soviet
trading organisations and individual Persians or Persian firms: the fear of
propaganda, and goes on to deal with the danger of granting the Soviets credits
i against their purchases of Persian products (all the more that they will only sell
I against cash) in view of the possible collapse of the Bolshevik regime.
4. It is interesting to note that, according to this document, the official
Persian view is that the Soviets—whatever their sins may be—can be relied upon
to meet their bills. Various reports from His Majesty's consular officers in the
provinces, which I hope to transmit to you in the near future, will be found, I
think, to bear out the views expressed in my despatch No. 507 of the 2nd December
last on this subject.
5. M. Petrovski, the Soviet Ambassador, has already arrived at Resht. I
understand that he will not stay long, having already been appointed to Vienna.
He is believed to have been given full powers to negotiate a commercial modus
vivendi, to take the form of amendments to the Commercial Treaty of October
1931, presumably, but the Soviet Government are said to harbour little hope of its
realisation in view of the “unreasonable demands" of the Persian Government
and to propose to leave M. Zuckermann as Charge d'Affaires as long as the conflict
lasts. In the meantime, one expects the Soviet Government to resort to their usual
method of bringing the Persian Government to their senses, which consists in
refraining from buying Persian produce.
6. The commercial secretary learns from an independent source, as a
corollary to the above, that the Shah has instructed the Director of the Depart
ment of Commerce to concentrate on the need to find alternative markets for
Persian exports to the Russian, whether through an agreement with Dr. Friedlieb
{which, one gathers, is to exclude import monopolies) or any other means.
[719 dd—5]
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