'Minutes memos despatches etc' [‎38v] (76/156)

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is giv.en by the Persian Government; but renunciation
of the Persian claim could hardly be secured except
as a quid pro quo for some other concession to Persia.
In any case, the question is unimportant compared
with that of Bahrein, Tamb, and Abu Musa.
(C.) Economic.
(1.) Extra-territoriality of Foreign Subjects.
The extra-territoriality of foreign subjects in Persia
is based on articles 7 and 8 of the separate commercial
treaty annexed to article 10 of the Russo-Persian
Treaty of Turkmanchai of 1828; the other Powers
obtained similar privileges for their subjects by most
favoured-nation clauses in a subsequent treaty with
Persia (Great Britain by article 12 of the Treaty of
Paris of 1857).
The abolition of the regime of the Capitulations is
included in the desiderata recently put forward by the
Persian Government (see introduction to this memo
randum). His Majesty’s Government informed 1 Sir
P. Cox at the time that the proposal could not be
entertained until Persia is able to offer reliable
guarantees for order and justice, and that this is hardly
possible until the necessary judicial and administra
tive machinery had been established under the
guidance and assistance of a friendly European
Power. This communication sufficiently indicates the
policy which His Majesty’s Government should pursue
at the Conference; in fact, it may assist us to secure
Persia’s consent, not only to the grant of a direct man
date to us, but also a mandate of a far-reaching nature
if we can argue that Persia’s acceptance of a radical
scheme of judicial assistance offers her the only reason-,
able prospect of an early mitigation of the extra terri
torial privileges of foreigners.
(2.) Persian Customs Tariff.
In the past the Persian Customs Tariff has been
framed primarily to suit Russian rather than British
commercial interests. In February 1903, under a
now Russo-Persian Commercial Convention a revised
tariff, drawn up by Russia, came into force. This
tariff substituted a system of specific duties for the 5
per cent, ad valorem duty imposed on exports and
imports under the Russo-Persian Treaty of Turkman
chai, 1828. An Anglo-Persian Commercial Treatv
was signed on the 9th February, 1903, and is still
operative, by which Great Britain secured equal
treatment with Russia under the new tariff, but the
duties fell more heavily on articles in which English,
and especially Indian, trade was interested, such as
tea and cotton piece-goods than on those with which
Russia was chiefly concerned. The new tariff is not,
however, understood to have produced a seriously pre
judicial effect on British trade.
One of the Persian Government’s desiderata at the
Conference, according to Sir P. Cox, is likely to be
“ the drafting of new commercial treaties and Customs
tariffs more in conformity with the principles of com
mercial liberty." His Majesty’s Government have