'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.' [‎61v] (127/386)

either party considered Lord Salisbury’s words to have affected the scope of the
eruarantee given in 1897, the Persian
p b i M Government m 1901, as will be seen here
after,* did base such a contention on the fact that His Lordship used the phrase
“ports on the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ” instead of “ the southern ports of Persia.”
6. In the face of the opposition, mentioned in paragraph 4, it was found
impossible by the Persian Goyernment to raise any money in Paris or Brussels,
and they turned for assistance to the Russian Banque de Frets. Hearing rumours
that negotiations were on foot, Her Majesty’s Government in 1899 approached
the Russian Goyernment with proposals for affording joint financial assistance to
Persia, and a promise was made in September 1899 to the Hon’ble Mr. C. Hardinge,
Charge d’Affaires at St. Petersburg, that the views of the Russian Government
on the subject would be communicated after examination of the question by M.
de Witte. Further, Count Lamsdorff stated that, in his opinion, the decision of
the Russian Government on the proposals for a loan to Persia should be pre
ceded by a frank exchange of views and an agreement with Her Majesty’s
Government, and on 3rd January 1900, Count Mouravieff informed our Ambas
sador that the loan proposals were still being studied by M. de Witte, and that
the Imperial Government had not yet committed themselves to any engage
ment with the Persian Government on the subject of a loan.
7. The promises given to the Hon’ble Mr. C. Hardinge and Sir C. Scott by
. T T the Russian Government were, however.
First Eussian Loan, January 1900. , » T ’ *
not fulfilled, and on the 30th January 1900
a notice appeared in the Russian official gazette that the Russian Government
had authorised the Banquo de Prets de Perse to afford Persia financial relief.
8. The loan itself, which was practically advanced by the Russian Govern
ment, was for £2,250,000 at 5 per cent, to be repaid, in capital and interest, in
seventy-five years out of the revenues of the entire customs of Persia, with the ex
ception of those of “ Pars and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ” or as stated in the Persian, “ Pars
and the Gulf of Pars,” a loose expression which occasioned mucli subsequent
controversy. It was redeemable in January 1910, but until it should have been
redeemed the Persian Government was prohibited from contracting any fresh
foreign loan without the approval of the Russian Government. In the event
of Persia’s failure to pay the interest, the Russian bank was to be entitled to
place controllers in the custom-houses, whose receipts constituted its security,
and until the debt was paid the Persian Government was precluded from reduc
ing the customs duties without the consent of the back.
These were the only formal conditions, but by a secret Agreement the
Convention of H89 prohibiting Persia from building railways in her territory
without the consent of Russia was prolonged for another ten years, and it is
believed, though it has never been conclusively proved, that Persia pledged
herself to allow the passage of Russian troops through her territory in the
event of hostilities between Russia and “any other Asiatic Power.”
9. On receipt of information of this transaction, Lord Curzon telegraphed
to the Secretary of State on the 3rd February 1900 suggesting that in view of
Russian tnala fides, the moment was favourable for an intimation both to the
Russian and Persian Governments of our interest in Southern Persia and our
inability to acquiesce in any detriment to that interest.
10. On instructions from Lord Salisbury, Her Majesty’s Ambassador on 19th
February 1900 called Count Mouravieff’s attention to the matter, and pointed
out that although it was explained that the transaction had been dealt with by
M. de Witte as an exclusively financial and non-politic:il question, yet the con
ditions of the loan, as stated in the official gazette, were clearly of a nature
w r hich might have very important political results, and the request was made
that an opportunity should be given to Her Majesty’s Government of learning
what exactly the conditions of the new loan were. On the same date, less than
three weeks after the loan was announced, Count Mouravieff was officially
addressed by Sir C. Scott to the following effect
Her Majesty s Government observe that, in the statement of the new loan it is mcn-
nned that the customs revenues of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. jorts and of the Province of Fars are not