File 1323/1916 Pt 1 ‘Baluchistan:- Disturbed conditions on the Anglo-Persian border. Future administration of Mekran, Sarhad & the Kalat States’ [‎50v] (98/896)

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their part to surrender Mirjawa Duz'dap line as free gift to Persia. I should be
glad of very early statement of your views as to next step vide my telegram 894*
of 18th March and connected correspondence and Tehran telegrams 88 f and 94f
dated 13th March and 18th March respectively..
This refers to your telegram No. 371-S.,§ dated February 16th.
(63)
(Received on the 7th April 1924, wth the Political Secretary's letter No. 12, dated
the 20th March 1924.)
P 900.
India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. ,
W HITEHALI f
London, S. W. 1 ,
18th March 1924.
Sir,
I am directed by the Secretary of State for India in Council to refer to your
letter of the 24th January No. S.-19743,|| and to the demi-official correspondence
between Sir A. Hirtzel, Sir G. L. Barstow and Sir W. Duke regarding the financial
arrangements between the Government of India and His Majesty’s Government
in connection with the disposal of the Nushki-Duzdap railway.
Of the two conditions stated in paragraph 2 of your letter the first is accepted^
by the Government of India ; and I am to say, therefore, that if the Mirjawa-
Duzdap section is presented to the Persian Government and if, thereafter, the
whole line is maintained in operation, the Government of India and the Secretary
of State in Council undertake that (subject to the maximum total payment
indicated below) one-fifth of the net profits accruing over a period of years from
the operation of the Nushki-Mirjawa line shall be paid to His Majesty’s Govern-
ment; the method of giving effect to this arrangement being that a, balance shall
be struck annually, that His Majesty’s Government shall not be entitled to share
in net profits in any year unless or until all outstanding net losses incurred after
1 st April 1923 have been absorbed in subsequent profits, but shall have no
other liability in respect of any loss incurred in any year ; and that His Majesty’s
Government shall receive a total sum, in payments made under the above
conditions, not exceeding the present estimated gross break-up value of the
Mirjawa-Duzdap line, viz., Bs. 8 75 lakhs One lakh is equal to one hundred thousand rupees .
The second condition in your letter as explained in Sir G. Barstow’s demi-
official** letter of the 5th February is unacceptable by the Government of India,
mid I am to enclose to be laid before The Lords Commissioners an extract from a
telegramft explaining the grounds of the Government of India’s objection. Lord
Olivier feels confident that, on further consideration, Their Lordships will avree
that they were asking more than is equitable in stipulating that, in the event of
the failure of the venture contemplated, they should receive such a share of the
proceeds of the sale of the Government of India’s property as would amount, on
present estimates, to more than twice the sum that would be realized if Their
Lordships property were sold at once, instead of being presented to Persia.
It is hoped that the contingency under consideration, viz., the demolition of
the Nushki-Mirjawa line after surrender of the Mirjawa-Duzdap line to Persia)
will not rise : if, however, it does arise, it may be assumed that it will do so only as
the result of a constant series of net deficits (in respect of which His Majesty’s
Government will have no liability and which will have been borne wholly by the
Government of India) forcing the Government of India to cut their losses. In
si ch circnmst mices it appears to Lord Olivier that the equitable arrangement
*Serial No. 38. ““ “ “ " “““
fSerial No. 2P. *
tSerial No. £9.
§Serial No.. 288 in File No. 70 (IV) M..
ijEnclosure to Serial No. 292, File No. 70 (IV) M.
^Serial No. 288 ibid.
**Not received.
ttSerial No. 288 in File No. 70 (IV) M. Slip H. Correa page 160.