'Lord Curzon's Notes on Persia' [‎15v] (31/1386)

PROSPECTUS.
THE IMPERIAL TOBACCO CORPORATION OF PERSIA, LIMITED, has been formed for the
purpose of acquiring and working the important Concession granted by His Imperial Majesty the Shah
of Persia, for the monopoly of the purchase, sale and manufacture, in Persia, of the whole of the Tobacco
produced in the Persian Empire.
The area of the Persian Empire is 636,000 square miles and its population is estimated at about
• See Letter 10 millions.*
from the
Director-
General of
( ^ t in The Concession grants the sole and exclusive right for the term of 60 years of purchasing, selling and
manufacturing Tobacco of all kinds grown in Persia, and provides that an annual rent of £15,000 and one
fourth of the annual profits, after payment of all expenses of working the undertaking and of 6 per cent,
upon the capital employed, shall be paid to the Persian Government.
The Concession was granted by His Majesty the Shah, and the Imperial Government of Persia on
NUrch; 1890, and registered at the British Legation at Teheran on the 9th May, 1890.
The cultivation of Tobacco forms an important branch of industry and trade in the Persian
Empire. Tobacco in. Persia is regarded almost as a necessary of life, and as such is used by both
sexes of all classes. In the form of Tumbaku, it is largely exported to Turkey and Egypt, and also
to India, Syria, Arabia, Afghanistan and other places. The consular reports shew that a large
quantity is annually shipped from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. Ports as well as from Trebizond on the Black Sea.
The annual consumption of Tobacco in Persia is estimated by M. Antoine Kitabgi, the Director-
General of Customs in Persia, who has been officially permitted to give his assistance and advice, to
be not less than 18,000,000 batmans, and the annual quantity exported not less than 1,500,000
batmans (a batman is about equal to 7 lbs. English). Translation of a letter dated the 2nd day of
August, 1890, from M. Kitabgi on the cultivation, use and exportation of Persian Tobacco is-enekosed.m-----------------
The Persian Government undertakes by the terms of the Concession to support and protect the
Corporation in carrying on their business, and has a direct interest in doing so, as it will share in the
profits realized. The Concession further provides that should any difference arise between the
Imperial Government and the Corporation, it shall be determined by an Arbitrator to be appointed
in default of agreement by one of the representatives of the United States of America, or of
Germany or Austria, resident at Teheran.
In framing the Concession advantage was taken of the experience gained in the working and
administration of the Turkish Tobacco Rgie, and careful consideration was given to the various
questions of administration and management which had arisen in connection with the Turkish Monopoly
established in the latter part of 1884. The Concession consequently provides for the registration
of the cultivators of Tobacco, the issue of licenses by the Corporation to Traders, the prohibition
of the transport and carriage of Tobacco without the sanction of the Corporation, and for the
punishment by the Government authorities of persons offending against the provisions of the Concession.
The Corporation is thus protected against difficulties which the Turkish Tobacco Rgie had
torcentenewith-whenfrstest abkishee, andiasmuek as the rent payabU by 1 io only pw* aim ma,
as against £630,000 per annum payable by the Turkish Regie, and the term of their Concession is for
50 years, as against the term of only 30 years in the case of the Turkish Concession, their
business will be entered on under much more favourable conditions.
The gross receipts of the Turkish Regie for the year 1889, as shewn by their published
accounts, amounted to £1,678,540, and the net profits (before deducting the rent payable to the
Turkish Government) to £838,000. The population included in the Turkish Regie is estimated on high
authority at about 15 millions—that of Persia is estimated by M. Kitabgi at about 10 millions.
Assuming these figures to be correct and that the Persians smoke per head only as much as the Turks,
the net profits to be derived from the working of the Persian Concession, estimating the same
percentage of working expenses, should be £558,000.