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File 2678/1917 Pt 2 'Persia: financial arrangements; rouble exchange' [‎162r] (327/334)

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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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TREASURY CHAMBERS,
22nd October 1917.
.o72
17
Sir,
I have laid before the Lords Commissioners of
His Majesty’s Treasury your letters Ho. 7692 of the 17th
instant and No.7710 of the 10th instant relative to the
provision of local curreneyfor the Russian forces in Persia.
With regard to the amount of kransjto be provided
I am to say that, as regards.the monthly credit of 15,600,000
mentioned in your letter of the 17th instant, it has now been
decided that this can be provided in a more satisfactory manner
by the elimination of the intermediary purchase of roubles and
that instructions have accordingly been given for placing at
the disposal of the Russian military authorities in Persia
by the Imperial Bank of Persia of the above sum of 15,GuO, 000
krans per month, as from the 26th instant. I am to add that
on the deposit each month of the requisite number ox Russian
Government Treasury Bills the discounted proceeds oi these
Bills will be credited to Messrs. Baring Brothers or the
Account of the Russian Government in order oo enable i-hem to
refund the imperial Bank of Persia for the above advances.
The provision of the above amount ox krans through the.
Imperial Bank of Persia involves a most severe strain on tne
silver resources of His Majesty’s Government, and has only been
undertaken in response to the urgent requests of the Russian
Government. In view of these difficulties Ily Lords hope that
the Russian Goverment will recognize Their inability to provide
the silver necessary to make possible a further immediate
advance of 13,600,000.
Ronsieur Emolaieff. ^

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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' [‎162r] (327/334), 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_100110327473.0x000087> [accessed 29 July 2026]

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