‘Seistan Persia & Seistan’ [‎161r] (330/617)

don )fc \vould wish us to support him in case the Bussians made any inconvenient
demand, and the Sadr-i-Azam will perhaps he gdad of our backing if he gets
mto^ tiouhle again with the Shah, hut these are contingencies about which
neitiier greatly troubles himself. What both really want us to do now is
to relieve them or the burden of the Begic debt, and then let them alone
to rule the country as they, please. The Shah regarded the debt from the
beginning as a hateful extortion, and he resents it doubly now, when the fall of
silver has largely increased the value in krans of the payment which has to be
made. He thinks we could relieve him from the payment if we chose, and that
if we n ere really friendly we would do so. He does not believe that Her
Majesty’s Government is powerless to set aside the claims of a trading
Company, and he never will believe it. The Sadr-i-Azam understands the
question much better, but he also considers that we ought to help him. His
argument is that the Shah never gives him a day’s peace about the matter, but
reproaches him incessantly for having introduced the Regie, and says that he is
personally responsible for the debt, and must find the money. The Sadr-i-Azam
points out that it is most difficult for him to do this, and urges that, as
his support of our schemes has brought him into the trouble, the least we can
do is^to come to his assistance. His Highness forgets that our support has
probably helped to keep him so long in power, but it is, I think, natural that he
should feel as he does, and that both he and the Shah should be rather sore on
the subject, for we pressed the Regie strongly upon them. The sum to be paid
yearly is not large from our point of view, but the revenue of Persia is little
more than 1 , 000 , 000 /.,* and the yearly deficit of late having been about
50,000/., the payment of over 40,000/. moref as interest on the loan is a not
inconsiderable tax. I need hardly explain that, as the pay of officials and
soldiers is in arrear, the Regie debt does not make us more popular in Persia.
There are always plenty of people to point out that the revenues of the
country are being eaten by the Feringi, while the Persian is denied his due.
22 . I do not know whether the good-will of the Persian Government is
regarded as a matter of sufficient importance to make us incur any pecuniary
obligation on behalf of it; nor do I know whether it would be practicable
to come to any understanding with the Regie shareholders; but what would
greatly relieve the Sadr-i-Azam, and probably enable us to gain considerable
advantages for ourselves, would be the taking over of the debt on proper
security, and the reduction of the interest to 3 or 4 per cent. This would save
the Persian Government some thousands of pounds a-year; it would look well
in Persian eyes; it would apparently cost us nothing, as we could borrow
the money at a lower rate ; and it would put into our hands a very useful lever,
bho doubt we might find ourselves in the more or less invidious position
of having to press for the payment of interest to ourselves, but practically that
is the position now, for each instalment has to be extracted from the Sadr-i-
Azam by this Legation. We should incur no greater odium if the money were
for ourselves, and if we made judicious terms as to the repayment of the
principal, we might materially increase our hold on the Persian Government.
They would, I think, give us almost any security we liked to ask, so long as we
confine ourselves to the south, [j:
I must admit that such a measure would not suffice to restore the finances
of Persia to an orderly condition, but it would be a sensible relief, and I greatly
fear that unless something of the kind is done the effect may be to alienate the
Sadr-i-Azam, who has undoubtedly been more or less sore with us since the
Regie days. I fear also that the end of the thing may be an appeal to
the Russians. They are apparently not unwilling to lend Persia money, and
the Sadr-i-Azam has warned me that he will not be able to prevent the Shah
from coining to terms with them if we do not help him. This may be .merely
an attempt to frighten us, but I believe there is truth in what the Sadr-i-Azam
* It ought to ba nearly a million and a-half, but of late years the revenues are not being
realized in full.—H. M. D. _ . .
f The deficit is exclusive of the interest on the loan, which has hitherto been paid from special
sources. The last instalment was borrowed.—H. M. D. . .. .
t It is possible that the Persian Government think we should be less hard with them it tbe
money was ours. We should have to warn them about this.—-II. M. I).
Regie debt.
Eagerness of Shah
and Sadr-i-Azam to be
free from it.
Suggestion that Her
Majesty’s Government:
should take over debt
on proper security
and reduction of
interest.
Danger of Persia
applying to Russia for
relief.