File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [146r] (293/334)
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. .
Transcription
This transcription is created automatically. It may contain errors.
From Viceroy, Finance Department, 23rd December 1917.
C—Your telegram of tire 19th instant. Persian Currency. It is
impossible to meet demand at once from Bombay as present silver lioldirm
there is about one million ounces only, or little more than Mint’s ordinary
working balance. It is necessary also for Bombay Mint between now and
end January to fulfil Egyptian contract amounting to approximately three-
fourths million ounces. Dates of arrival of silver are uncertain,’ but if
shipments advised arrive without undue delay it may be possible, though at
great inconvenience to ourselves, to supply two million ounces during
January. 'Provided, therefore, that you are satisfied that (1) purposes for
which silver is required are of vital (?) importance, and (2) that amount will
be replaced by end of February in addition to purchases which you would
otherwise have been able to effect on our behalf, we will not oppose demand.
(? We) consider second condition essential.
2. We would, however, take the opportunity to emphasise our own rupee
position. Issues of
rupees
Indian silver coin also widely used in the Persian Gulf.
during last few weeks have been very heavy, and
if, as seems likely to be the case, absorption during the next two months
continues on same scale as last year, rupee balance on 15th February, apart
from fresh coinage, will fall to 14k crores. In our telegram of the 22nd
ultimo, 2529 F., we urged you to aim at purchases of approximately 400,000/.
weekly during next few months, but they have fallen considerably short of
this figure, and delay in materialisation of special arrangements with United
States has been consequently most disappointing to us. We trust you will
press (?) for very early settlement of question of American supplies,
especially as we are already having to meet demands against rupee credits
opened for American merchants.
3. Above figure, 144 crores, is dangerously low to start with at opening
of what promises to be busy wheat season, and you will no doubt impress on
Imperial Government that existence of strong silver balance during this
season is essential unless purchases of wheat by Wheat Commissioner are to
be seriously jeopardised.
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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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File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [146r] (293/334), 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_100110327473.0x000065> [accessed 17 July 2026]
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- Reference
- IOR/L/PS/10/687/2
- Title
- File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange'
- Pages
- 2r:35v, 36ar:36av, 36v:96v, 97ar:97av, 97v:109v, 109ar:109av, 110r:158v, 158ar:158av, 159r:165v
- Author
- East India Company, the Board of Control, the India Office, or other British Government Department
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