'SUMMARY OF THE PRINCIPAL EVENTS AND MEASURES OF THE VICEROYALTY OF HIS EXCELLENCY LORD CURZON OF KEDLESTON, VICEROY AND GOVERNOR-GENERAL OF INDIA IN THE FOREIGN DEPARTMENT. I. JANUARY 1899-APRIL 1904. II. DECEMBER 1904-NOVEMBER 1905. VOLUME IV. PERSIA AND THE PERSIAN GULF.' [‎67v] (139/386)

Hardinge was able to inform us on the 20th June .904 that they admitted that,
in using the expression in question their intention, was to abide by the declara
tion of 1897 and to exclude from the Russian loan contracts all the ports of the
south.
The Persian note of the 19th June 1904, was replied to by Sir A. Hardinge
in the following terms on the 21st.
“I have had the honour to receive Your Excellency’s note of the 19th instant, in which you
inform me that it was the intention of the Persian Government in employing the expression
“Ears and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. " to exclude from the operation of the Russian loan contracts all
the ports of the south, but that as the Persian Government cannot alter any Atticle inserted
in those contracts or interpret it without the participation of the Russian Bank the question
will in the improbable event of a difference arising with that institution with respect to the
position of Mohammerah have to be referred to arbitration."
40 The note w^as so far a gain to our view that for the first time it formally
admitted that the Persians intended by “ Pars and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ” to express
all the ports of the south and was an obvious compromise on the part of the
Ain-ed-Dowleh between the opposing recommendations of the Musbir-ed-
Howleh and M. Nans’ draft. M. Nans’ declaration of the intention of the
Persian Government to exclude all the ports of the south from the Russian
guarantee had been adopted, but the reference he had put iu his original draft
to the engagement of 1897 * had been
* Vide paragraph 3 ante, page 23 . avoided at the instance of the Mushir-ed-
Dowleh from whom also the idea of a contingent appeal to arbitration had
been borrowed.
41. Within three weeks of this formal admission by the Persian Govern
ment, application was made to Sir A. Hardinge for completion of the British
loan of April 1903 by payment of the £100,000 which the Persian Government
had not yet received. On 5th July 1904, Sir A. Hardinge telegraphed that
M. Naus had proposed a draft agreement which he considered advantageous.
Practically the terms were the same as those of 1903. The Government of India
on being consulted agreed to the completion of the advance, but suggested that
opportunity should be taken to substitute for the phrase “ Pars and Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ”
the old expression “ customs of Southern Persia ” which the Persian Govern
ment had recently admitted that they intended to exempt from the Russian loans;
and also that Sir A. Hardinge should endeavour to secure the Shah’s assent to
linking up the Persian telegraph line in Seistan w ith the Indian system at Koh-i-
t Fo.drt.il., see Chapter XVI, paragropb. 27-31, , Sial, ’ + this _ proposal hOWOVer Was
pages iss-ia:. not to be a condition of the present loan.
It was eventually decided by His Majesty’s Government to complete the loan,
on the same security as in 1903; to take note of the formal admission made by
the Persian Government of the original meaning attached by them to the term
“ Pars and the Persian Gulf’* and to notify the view held by His Majesty’s
Government in the matter, at the same time intimating their intention to
take the necessary steps to secure respect for their rights in the event of the
Persians attempting to ignore them. Lord Lansdowne’s instructions to Sir A.
Hardinge, dated the 8th August 1904 on this point run as follows :—
No. 121.
1 have received your despatch No. 114 (Confidential) of the 20th June, transmitting the
reply of the Persian Government to ycur request for a definition of the meaning attached by
them to the expression “ Customs of Pars and of the ports of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ," which is
employed in the Russian Loan Contracts of 1900 and 1902, and which is also mentioned in the
agreement of 1903, as forming one of the subsidiary guarantees for the advance then made to
the Persian Government by the Imperial Bank of Persia.
In this reply it is stated that, in excluding the “ Customs of Pars and of the ports of the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. " from the guarantees of Persian loans, the Persian Government undoubtedly
intended to retain full rights of possession over all the ports of the south. They consider, how
ever, that they cannot alter or interpret any of the Articles of the two Loan Contracts “ with
out the participation of the Russian Bank," and that, should discussion arise whether Moham
merah is or is not a port of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. , the question can only be decided by a recourse
to arbitration.
His Majesty’s Government take note of the formal admission made by the Persian Gov
ernment that it was their original intention, in using the term “ Customs of Pars and of the
ports of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. ," to include iu that expression all the ports of the south, but they
regret that the reply now received cannot, in other respects, be accepted as satisfactory.