"F 80 ملف 82/34 I امتياز أ.ب.و.ك" [ظ‎‎١‎٨‎٨] (٤٣٦/٣١٩)

We have also known for some time past how seriously the Shah was perturbed by
the drop in the Anglo-Persian Oil Company's royalty. Finally, I learnt some-
days ago that during his visit to the south the Shah pressed Mr. Carroll strongly j
to build the railway line from Salehabad to Burujird with the utmost despatch f
and regardless of cost, saying, in order to emphasise his point, that he was pre- ^
pared to come and work himself as a navvy. Mr. Carroll accordingly went into ml
the figures and reported that the cost would be approximately 60 million tomans
and the time required four years, and so I have no difficulty in believing that His.
Majesty, realising that the proceeds of the sugar and tea monopoly would be quite ^
inadequate, returued to Tehran determined to bring -the issue with the Anglo- "
Persian Oil Company to a head. 1
8. Mr. Wadsworth, of the American Legation, told me to-day that
Dr. Friedlieb claimed to have been asked by Teymourtache in the course of the
last day or two what he thought the intentions of the Persian Government had
been. Dr. Friedlieb replied that he had rejected the theory of collusion (see my
despatch No. 505) between the Government and the company, and had concluded toC()I1
that the Government's intention was to give the company an unmistakably clear
intimation of the Government's determination to get down to serious negotiations.
According to Dr. Friedlieb, Teymourtache accepted this as a generally correct
interpretation, while adding that " he would have phrased it differently."
9. I imagine that something of this sort will, in due course, emerge, as the
official Persian explanation of a misunderstanding which the Persians will be
delighted to believe could not have arisen had the company treated the matter as ' i*
a normal business issue and had His Majesty's Government, by their intervention,
not rendered a settlement difficult. But even though some such result is lit, that
inevitable, we may hope that for a short time the intervention of His Majesty's Sims in
Government will be remembered. ije
10. I am sending copies of this despatch to the Foreign Secretary to the "Ast
Government of India (No. 264), His Majesty's Ambassador at Bagdad (No. 132), bltojo
the Hon. the Political Resident in the Persian Gulf at Bushire (No." 223) and to- If that t
His Majesty's consul at Ahwaz (No. 100). liDe
I have, &c.
R. H. HO ARE. ta
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