File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [156r] (313/334)
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.
No.412 of the 30th ultimo Sir C.Marling reports ths.t the Manager of the
[moerial Bank of Persia professes himself unable to provide tne
13^500,000 krans promised, to the Russian forces in Persia in return for
silver in the United States
cxxvwa. — — unless a considerable sum in silver is
hurried forward from the South. In order to buy up rouble notes in
Persia for use by the Caucasus Army it is clear that very large
quantities of silver will be required and My Lords are not aware from
what sources it is proposed that these snail be obtained. It is
s ossibie that a certain number of rouble notes may be obtained through
the sale of drafts on India, and in this connection My Lords would, be
glad to be informed whether the decision of the War Cabinet na-n 'Hp.
;cre'
an be
of State for
interpreted as involving an obligation upon the Se^^ w
India in Council to supply India Council"Bills for this puroose uo to
quired, notwithstanding the danger of making the Kupee
any amount required, no
Note Issue inconvertibl
It should further be borne in mine, that the number of rouble notes
in Persia, although large in relation to the number of rouble notes
usually in circulation m that country, is strictly limited. No
estimate has been given; but, m the opinion of Their Lordships, it is
hardly likely that it will be sufficient .to satisfy the minimum demands
of the Caucasus Army during the next two months, quite apart from the
fact that the purchase of such notes on a large scale will very rapidly
increase their price. it would also seem probable that there will.be
further demands in Southern Russia for rouble notes which nis Majesty’s
Government will be called upon to satisfy. It was for• instance"
decided^aigthe Interallied Conference in Paris that roubles to the
value of £5,000,000 sterling should be placed at the disposal of the
Roumanian 'Government. It is at present prooosed to obtain these sums
by the sale in Southern Russia of drafts on London. Should, however,
tnis prove impossible there would seem no other source of supply for
the funds required than the rouble notes at present in circulation in
Persia. The same is true with regard to the far larger sums which it
may be decided to pls.ee at the disposal of Genera,! .Kaledin.
In short,
notes in
to
as
%
prospect
press ucon"Mr.
to ^
Lords see at present no sufficient supply
^ 11 tne above
4- ^
oO
meet all
requirements.
Secretary Balfour the imoortance of reacnin
the relative urgency of supply to the Russian
and to the
Kaledin
to n the Caucasus Army, to General
before deciding that Sir. 0.Marling should be given
exhaust the supply of notes available on account of
alone. ^ *
of rouble
1 am,accord!ngly
ohing a decision
forces in Persia,
Houma:li an Go v ernment
a free hand to
the Caucasus Army
A copy of this letter is being forwarded to the War Office and 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.
.
I am, etc.,
L
About this item
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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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File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [156r] (313/334), 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_100110327473.0x000079> [accessed 18 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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- Open Government Licence
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