'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.' [‎70r] (144/386)

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CHAPTER IIL
(«) REORai^ISATlON OF THE CUSTOMS SERVICE,
(6) Reloian Opposition to British interests in Southern* Persia.
It bad been tbe practice until 1899 to farm the customs to officials or
local magnates with tbe result that peculation deprived the Central Government
of a large amount of its revenue. The Persian Government realised that the
valueof their customs as a security would be enhanced by remodelling tbe service
on European lines.
2. With this end in view the Shah engaged in February 1898 the services
of three European customs experts. Application was made to Belgium as a
neutral state for the necessary personnel. The proposal wasjreadily accepted by the
Kino* of the Belgians. Large financial interests in railway^ mining and other
concessions were already being created for bis country in China by the profitable
part Belgians had played as aprete-nom to Prance and Russia. The possibility
of establishing similar interests in Persia was eagerly seized.
3. M. Naus, Director of Excise and Customs in the Province of Brabant,.
and two compatriots were permitted to
Naua - enter Persian employ and were seconded.
in their own service.
4 On the 21st March 1899, the beginning of the Persian financial year,
Belgium employes in Kermanshali and «.e Persian Government took their first
Azerbaijan. step towards the reorganisation of the
customs of the country on Government lines as one of the departments of
State, and transferred to the direct control of M. biaus the customs of Azer
baijan and Kermanshah. Later in the year another Belgian Customs officer
was enlisted in the Persian service and sent to Kerman. Improvement was
quickly visible. The customs receipts for the first nine months of 1899-1900
exceeded by £80,040 the total receipts for the previous year These results
were due solely to the measures adopted to prevent leakage which had hitherto
been the rule. This was encouraging and in September 1899, M Nans
informed Mr. Spring-Rice that the Persian Government were considering
tbe advisability of extending the direct system uf control to the southern
customs and of suppressing the customs station at Mohammerab, in winch case
ships would have to undergo customs examination at Bushire, where import duties
would be levied. It was pointed out that the proposed measure would ruin the
Karun trade; that it would be detrimental to the interests of the Sheikh of
Mohammerah; that Great Britain was specially interested in that port, the
status quo of which would be altered by the proposed change as the Grand
Vizier had given a promise in 1890 that customs might be collected either at
Mohammerah, Ahwaz or Shuster according to the destination of the goods ; and
moreover that, in 1897 a further assurance had been given that the customs
revenue of southern Persia would not be placed under foreign supervision or
control without consulting the British Government. The scheme as regards
Mohammerah was temporarily withdrawn.
5. The experiment of employing customs experts had proved beneficial to
the Persian exchequer and ten additional
M. Simais at B»sMre. BeMans were engaged. M. Simais for-
merly Commercial Attache o£ the Belgian Legation at Tehran was _ appoint
ed Director General of the Customs of Bars and was sent from labriz m March
1900 to Bushire to effect reforms.
6. The prevailing system was anomalous. On the one hand, foreign trade,
without distinction as regards the different articles of commerce, was subject on
export and import to an ad valorem duty of 5 per cent.; on the other, trade in
Persian hands paid duty at a rate varying from 2 per cent, to 4 per cent, this
variation being due to the farming system. Further, trade in Persian hands was
subject to many and various internal charges resu lting m- advantage to foreign
* For Belgian oppo.sbionto Briti.h interest* ia Seistan, activity iu bapter XV, page.
J. 27-115.