'SUMMARY OF THE PRINCIPAL EVENTS AND MEASURES OF THE VICEROYALTY OF HIS EXCELLENCY LORD CURZON OF KEDLESTON, VICEROY AND GOVERNOR-GENERAL OF INDIA IN THE FOREIGN DEPARTMENT. I. JANUARY 1899-APRIL 1904. II. DECEMBER 1904-NOVEMBER 1905. VOLUME IV. PERSIA AND THE PERSIAN GULF.' [‎13v] (31/386)

14
The relief was only temporary. In the following year the Shah was again
in need of funds, and the British Government were again approached. His
Jdaiesty’s Government were anxious to avert a further Bussian loan.
J J The money could not, however, be raised
Proposed British loan. the London market, nor could the Home
Treasury provide the amount. Enquiry was therefore made whether
Indian revenues could find a sum of £500,000. Lord Curzon at once replied
that the Government of India not only could advance the capital, but con
sidered the opportunity one of the greatest political importance. An adequate
return must be obtained, however, and the terms suggested were as follows
(1) the loan to be secured upon the Customs of the Gulf Ports and
upon the revenues or Customs, preferably the former, of Seistan ;
(2) the contemplated changes in the Persian tariff then under discus
sion with Kussia to be submitted to, and receive the assent of
the Government of India;
(3) the loan to be accompanied by a plain statement to the Persian
Government that, in view of the British interests thus created,
in addition to those already existing in Southern Persia and
Seistan, His Majesty’s Government could not admit the creation
of any rival interest in those regions.
To avoid infringement of the recent Bussian contract which forbade the
raising of a foreign loan, it was proposed that the transaction should be
concluded through the intermediary of the Imperial Bank. Eurther
discussions followed. Einally, on the 6th November, His Majesty’s Minister
was authorised to offer a loan of the amount named, subject to conditions
based upon His Excellency’s recommendations. But modifications were
introduced which diminished the direct political advantage; and Sir Arthur
Hardinge was informed that the advance could not be made through the
Imperial Bank. The Atabeg at once replied that some assurance w r ould be
required that his acceptance of the loan would not violate the contract
with Bussia, which forbade the raising of any external loan. The restriction
as to payment through the Bank was subsequently withdrawn; but the negotia
tions fell through. °
A further Bussian loan was already being discussed. In September 1901
and in January and March 1902 sums aggregating 3,000,000 roubles were
advanced by the Banque d’Eseompte: and
Second Russian loan, 1902 . in April 1902, the announcement appeared
,, rp, , . of a further Bussian loan of 10,000,000
T l - e wer ? simiJar f° those of the transaction of 1900, save
that the period of financial tutelage was extended from 1910 to 1912 and that
the security for the loan included, not only the existing Customs revenues of
Sereiftej' 14 The > latt° Se whlc . h . rni § ht be derived from Customs posts established
thereafter. 1 he latter provision was clearly intended to include new posts
on the land frontier between British and Persian Baluchistan. But substantial
^cured'thfriVhfof n f° beea g ained : The Russian Government had
third Power S A cnf ne ? otla , tln S a Dew tarlft without the intervention of any
thud Powet A concession had been obtained for the construction of a road
irtrecm^l the Busso-P^n RaU-
for the construction of railways to a company oPSher^ersons’’^ Therenet”
^c the
^"howeve^ffrwhich J 0688 ^* 0 ^wayTinTerda’“° Other"
not been granted- the offe,- of PlfPPP 0 had , ma< J e strenuous efforts, had
Government in placing some oli ? 181 oa “ bad at least assisted the Persian
The reed Z S k Up ° n the ra P acit y o£ ^ssian demands,
loan was needed; British 'mT.^'I 101110 ’ Wltlu . 11 a few months a further
was again invited to assist The ev ® W3S a £ S ^ n Woaehed ; and India
the difficulties which beset a snnnle l 0 ?it° £ - tl10 P rev i° us jear had shown
Beset a stmple loan. Hts Majesty’s Government suggested,