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File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [‎125r] (251/334)

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The record is made up of 1 item (165 folios). It was created in 22 Oct 1917-26 Sep 1918. It was written in English. The original is part of the British Library: 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. Records and Private Papers Documents collected in a private capacity. .

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considerable improvement as in order to buy roubles
with sterling one has first to convert into Krans.
With reference to actual imports from here
to Persia permits are now being given to export certain
commodities from Russia, but it appears that most?
of the business is in the hands of certain speculators
who do not sell the goods imported at a fair profit, but
rather hold them in a ring and sell as near existing high
prices as possible. That is to say, there is no competi
tion in selling. For instance, the relative price in
roubles at Tehran for a pood of sugar is about 600 roubles
yet there seems to be no lack of sugar and on the bazaar
people are able to buy as much as they want for their
needs. This seems to mean that the quantity of sugar
which was formerly exported is still held in stock and
quantities .let out as and when the market requires it,
so maintaining the high price. The same applies to
kerosene, although this is more difficult to obtain
owing to the lack of transport.
Exports which are being ma.de now are sold in
Persia for roubles and krans, that is to say part
payment - in roubles and part in hrans. The iciea of this
apparently was to draw the paper rouoles out of tne
country. In practice however it has the othei effect
as only the Krans are paid over in cash while the rouble
payment is made by a draft on Baku.
Then comes the question of transport; most of this
has been commandeered by the Russian Military Authorities,
and as far as one can see is used more for the purpose
of transporting healthy soldiers than any other. Any
amount of exports dumped.on the shore at Enzeli without
any

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This part contains papers relating to the financing, by the British Government, of the Imperial Russian Army in Persia [Iran], particularly the difficulties in the acquisition of currency to pay troops, and policy developments concerning the role of Russian forces in Britain’s military and political strategy. The papers notably cover:

  • The crisis in the rouble [ruble] exchange rate and authorisation of payments to the Russian Army of the Caucasus in local currency (Krans), due to the scarcity, unpopularity and devaluation of the rouble
  • Discussion concerning whether the silver being imported by Russia from America (see IOR/L/PS/10/687/1) should be transferred directly to the British Government, instead of Russia, and the British Government advance funds to Russia for the purchase of Krans
  • Tension between the Treasury and the War Office and Foreign Office regarding how much resource is allocated for the Russian Army in Persia, especially in light of armistice negotiations by the new Russian Government with Turkey [Ottoman Empire] towards the end of 1917
  • Foreign Office enquiries concerning the possibility of the Indian Government dispatching silver bullion to the Imperial Bank of Persia, Teheran [Tehran], and the potential minting facilities in Bombay [Mumbai] in the event of Teheran refusing to mint silver Krans
  • The composition and reporting structure of the Hamadan Board, set up to control British financing of Russian troops, and its dissolution after the arrival of Dunsterforce [Allied military force under General Lionel Dunsterville] in June 1918
  • Financing of the Persian Cossack Division (under Russian command), by the British Government, and proposals in March 1918 to move the Meshed [Mashhad] detachment to Shahrud [Shahrood] in closer proximity to Teheran for the city's defence (if needed), whilst waiting for British forces to arrive
  • The question of whether to continue or to stop paying the Russian troops in north west Persia, notably at Resht [Rasht] and Enzeli [Bandar-e Anzali], and the various considerations including: payments might end the reported looting of local banks by Russian troops; doubts about the potential effectiveness of Bicharakoff’s force [Colonel Lazar Bicherakov, also spelled Bicharakov in this item] to secure and advance British military interests, notably to prevent the capture of Kazvin [Qazvin] and possibly Teheran by the (anti-Qajar) Jangalis [Jungle Movement of Gilan]; the continued difficulties in obtaining Krans to finance the Russian forces and how much to pay them in relation to the claims submitted by Russian military authorities; whether payment of the remaining Russian forces should be contingent on Bicharakoff co-operating with Dunsterforce
  • Whether, and how much, to pay the retrospective claims of General Baratoff [Nikolai Nikolaevich Baratov] for his disbanded force [the 1st Caucasus Cossack Corps, disbanded after the Russian ‘October Revolution’ 1917].

The papers mostly consist of minute papers of the 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. Secret and Political departments; copies of decyphered telegrams; copies of correspondence; and notes and letters by 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. officials. The 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. minute papers are annotated chiefly by John Evelyn Shukburgh, Secretary, Political and Secret Department, and officials of the Financial Department.

The main correspondents are as follows: the 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. , including various Financial Department officials; the Treasury; the Foreign Office; Sir Charles Marling, Envoy Extraordinary and Minister Plenipotentiary A diplomatic representative who ranks below an ambassador. The term can be shortened to 'envoy'. , Teheran [Tehran]; General Officer Commanding in Charge, Mesopotamia; and the Director of Military Intelligence.

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1 item (165 folios)
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English in Latin script
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File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [‎125r] (251/334), British Library: India Office Records and Private Papers, IOR/L/PS/10/687/2, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100110327473.0x00003b> [accessed 14 July 2026]

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