File 2678/1917 Pt 1 'Persia: Financial arrangements Rouble Exchange' [299r] (270/417)
The record is made up of 1 item (206 folios). It was created in 8 Jun 1917-24 Dec 1917. It was written in English and French. 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
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copy.
Tivyifint and Confidential
(171998)
London,
■ v- C September 1st, 1917.
Your Excellency:-
The deliberations of the last Inter-Allied
Conference in London and an exchange of views with Lord
Milner for which this conference gave me an opportunity
has led me to the conclusion that the active co
operation of the Russian forces in Persia with the
British troops in Mesopotamia would be of a great value
to the Allied cause and would particularly serve to
relieve the possible pressure of the Turkish troops in
the direction of Bagdad. I therefore cabled to my
Government strongly advising them to overcame all
obstacles and to endeavour to undertake an offensive
movement on the Eusso-Turkish front.
Replying to this advice, the Russian Government
informed me that the main obstacle to the successful
realisation of the suggested movement lay in the
impossibility for the Russian Government, owing to the
present condition of the Treasury, to obtain the
necessary metal, for the payment and food supplies of
the Russian troops in Persia. The Russian Government
forwarded to me a concrete statement of the needs of the
Treasury, asking me to urgently represent to His
Majesty’s Government the utmost importance of immediate
assistance. I had the honour to forward to Your
Excellency a memorandum, containing full particulars in
this matter, on August 14th, wo.1386.
Having
The Right Honourable
A. J. Balfour, O.M., M.P.»
&c., &c., &C.
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], notably difficulties concerning the acquisition of currency for the payment of troops, and the development of British policy regarding the method of distribution of funds to the Russian military authorities in Persia. The papers notably cover:
- Problems with: purchasing roubles [rubles] in Russia due to restrictions on agents of the Imperial Bank of Persia in Russia; the remittance of roubles through Persia; and the poor rouble exchange rate due to the depreciated value of the currency
- ‘Lawless’ behaviour of Russian troops in Persia, notably at Hamadan, Kermanshah and Kasvin [Qazvin], including looting of bazaars, apparently following the refusal of marketeers to accept the depreciated rouble
- Problems of the Russian military authorities, notably the ‘Caucasian Army’ [Russian Caucasus Army] under General Baratoff [Nikolai Nikolaevich Baratov], in obtaining funds from the Russian Government, and requests for British financial support and loans
- British concerns that the departure of Russian troops would leave Persia vulnerable to attack by Turkish [Ottoman] forces, and plans to send a British force to the region
- The need of the British Government and the Government of India to balance financial pressures in Persia with those of the war effort elsewhere
- Plans for the acquisition of silver by Russia from America, and its transfer to Petrograd [St Petersburg] for minting of Persian money (Krans) and onward transmission to Persia, or for transfer to Teheran [Tehran], via Petrograd, for minting in Persia, to meet the requirements of the Russian troops (see also IOR/L/PS/10/687/2)
- British decision to set up a Commission, or Board, in Hamadan, for the control and distribution of Krans to finance and pay Russian troops in Persia (rather than distribute funds via a Russian Bank or directly to the Russian military authorities), and difficulties over recruiting staff who are both sufficiently experienced and available (see also IOR/L/PS/10/687/2)
- Growing British doubts in late 1917 about the reliability of Baratoff’s army and the policy of continuing to finance it, notably the War Office’s view that it is out of control, under the influence of Bolshevik committees, and at risk of being utilised against British interests.
The papers mostly consist of: covering letters of the Under-Secretary of State for Foreign Affairs to the Under-Secretary of State for India, with related enclosures; 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; 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 Shuckburgh, Secretary, Political and Secret Department, and Francis H Lucas, Secretary, Financial Department.
The main correspondents are as follows: the Foreign Office; 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; Sir Charles Marling, Envoy Extraordinary and Minister Plenipotentiary A diplomatic representative who ranks below an ambassador. The term can be shortened to 'envoy'. , Teheran; George Newell, Manager, Imperial Bank of Persia, London; Monsieur S Ermolaieff [Yermolayev?], Agent of the Imperial Russian Treasury, India House, London; and M Nabokoff [Konstantine Dmitrivitch Nabokov], Chargé d’Affaires of the Russian Government in London. Other correspondents include: Sir Cecil Spring Rice, British Ambassador to the United States, Washington (also a former Ambassador to Persia [Iran] 1906-1908), and Sir George William Buchanan, British Ambassador to the Russian Empire (up to the October Revolution), Petrograd [St Petersburg].
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- 1 item (206 folios)
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File 2678/1917 Pt 1 'Persia: Financial arrangements Rouble Exchange' [299r] (270/417), British Library: India Office Records and Private Papers, IOR/L/PS/10/687/1, in Qatar Digital Library <https://www.qdl.qa/archive/81055/vdc_100110327475.0x00000c> [accessed 6 August 2026]
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- Reference
- IOR/L/PS/10/687/1
- Title
- File 2678/1917 Pt 1 'Persia: Financial arrangements Rouble Exchange'
- Pages
- 299r:300r, 259r, 256r:257r, 253r, 238r
- Author
- Nabokoff, C
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