Miscellaneous Correspondence, Notes, and Newspaper Cuttings Relating to Persia [‎4r] (7/255)

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No. 7.
The Marquess of Salisbury to Sir M. Durand.
(No. 23. Confidential.)
(Telegraphic.) Foreign Office, July 10, 1899.
WE have, in view of your despatches, for some time past been carefully considering
the manner in which financial assistance can be procured for the Persian Government.
The matter presents great difficulties. So far from wishing to make use of this or
other methods in order to obtain control over the southern portions of Persia, we have
always been anxious that any loan should he arranged through the Imperial Bank of
Persia in order that any question of foreign intervention might be avoided. That
Bank has, however, found itself unable to raise a loan except on condition that the
Customs revenues assigned as security ^should immediately he placed under its control.
To this the Sadr Azam objects as inconvenient in itself, and because he would
feel hound to offer to the Russians a Concession for a loan on similar terms.
The only alternative I am able to suggest is that Imperial Bank of Persia should
endeavour to raise a loan on conditions somewhat similar to those of Moorish Loan of
1862 (see State Papers, vol. lii, p. 33). The loan would he on the security of the
customs of the southern ports of Persia, and the contract might he to the effect that
the Bank should appoint a Commissioner, to he approved by the British and Persian
Governments, who should receive the customs revenues of those ports, and apply them,
so far as required, to the service of the loan, handing over any balance to the Persian
Government. It would, no doubt, greatly improve the chances of the loan, and the
terms on which it could be obtained, if it were also provided that the proceeds of the
loan, or those portions of it assigned to special purposes, should be placed in the hands
of the Commissioner, who should see that they were so applied.
You may speak to Sadr Azam in a friendly manner to the above effect, and ask
him if such an arrangement would he acceptable. We should not wish to make any
secret of it from Bussia, and would raise no objections to his offering to the Russians a
contract for a loan on similar conditions to he secured on the Customs of the Caspian
ports of Persia.
The Persian Government would probably prefer themselves to approach the
Russian Government on the subject. In any case, we should earnestly advise the Sadr
Azam not to pledge the customs revenues of Kermanshah as security for either loan.
No. 8 .
Sir N. O’Conor to the Marquess of Salisbury. — [Received July 19, 6‘45 p.m.)
(No. 28.)
(Telegraphic.) Constantinople, July 19, 1899, 5'15 p.m.
UP to yesterday Turkish Ambassador had not apparently reported anything to
the Sultan respecting Conversion Agreement of 1855 Loan.
No. 9.
Mr. Jenner to the Marquess of Salisbury .— (Received July 20.)
(No. 35.) mm m m
(Telegraphic.) Guatemala, July 19, 1899.
YOUR Lordship’s telegram No. 20.
There is some misunderstanding. I have not requested Captain of “ Leander 11
to [? come] here. On the contrary, on 11 th July I agreed to his going south to join
Admiral.
If strong measures are not to he taken, preferable that he should stay away, as he
would have to thank President for courteous treatment on his previous visit, and I
think exchange of courtesies would he out of place under present circumstances.