‘Bagdad Ry’ [‎2v] (4/129)

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Majesty’s Government proposed to deal with the case. I said that we had already
instructed the Government of India to make preparations for arbitration in accord
ance with the provisions of the Treaty of 1857, and I had heard with great satisfaction
that the Persian Government had signified its readiness to accept such arbitration.
In the meanwhile, we had been informed that the Akhanzada had withdrawn from
Persian territory, and I trusted that the dispute had passed out of the acute stage.
His Highness thereupon read me a telegram which appeared to he dated the 13th or
15th August, in which it was stated that the Akhunzada had retired from the disputed
territory, but that he had, before doing so, destroyed the irrigation w r orks, thereby
depriving the people, who were threatened with ruin, of their water supply. What
were we going to do ? I gathered that his Highness thought that the Persians might
he encouraged to go in and restore the works.
I asked his Highness to let me have a copy of the telegram, and said that I should
like to consider, in consultation with the Government of India, what steps might he
taken under these somewhat difficult circumstances.
Speaking of the Russian Loan of 1900, his Highness assured me that it would not
have been contracted if the British Government had been ready to assist Persia at
that time. I said I had always deplored the conditions attaching to that loan, but
the loan was an accomplished fact, and we had now to consider what was the best
mode of treating the situation as it existed. His Highness spoke of the constant
strain to which the finances of Persia were subject. I said I was aware of it, and
of the difficulties which his Highness had to encounter. If he would open his mind
to me, I promised to examine with the utmost attention, and with every desire to be
of service to his country, any suggestions which he might have to offer.
His Highness reminded me that it was owing to his influence, exercised in the
face ot much opposition, that we had been given a pledge that if railways were ever
constiucted in lersia, we should be allowed the priority in respect to all southern
lines. I said that I was fully aware of this pledge, which I regarded as one of signal
impoi tance, and which His Majesty s Government would certainly not forget, and we
appreciated not less the assurance given us in 1897, and since renewed, to the effect
that the customs revenues of the south of Persia should under no circumstances be
gh en as security for any foreign loan. As to this his Highness observed that we had
that assurance in writing.
As his Highness had only just arrived in London, I excused myself from pro-
longing our conversation, but when I was on the point of leaving, he begged me
not to believe all the reports which might reach my ears with regard to Ins’alleged
Russian proclivities, and to make the necessary allowance for the difficulties with
which he had to contend.
I said that we fully recognized these difficulties, and that we moreover realized that
owing to her geographical position Russia could scarcely fail to exercise a large measure
ot influence m north Persia. Our interest lay in the south and in the Province of
oeistan, and we could not afford to be indifferent to what happened in those regions. I
would, with his permission, recur to the question on another occasion.
I am, &c.
(Signed) LANSDOWNE.