File 472/1912 'Loans to Persia' [‎61r] (126/348)

Secret.
C. 120.
This document is the property of the Secrelanj_oj_SUde_ f or India *« ’ - -
Memorandum as to Persian Government Loans.
Object of tbe Memorandum.
The Russian
62,250,000.)
Loan of 1900.
* The customs of Kermanshah, it ma}
- observed, wdre to be left out of account,
Boause Her Majesty’s Government neither
ished to face the risk of being called
n to occupy the Kermanshah customs-
ouse, nor desired to see the Russians, on
heir side, in occupation of it.
Telegram to Sir M. Durand, No. 24,
2nd August 1899.
(P. 46.)
Telegram from British Ambassador at
3t. Petersburg, No. 17, 30th January
1900. ^ 7 .ox
(P. 36. See also p. 46.)
t The value of the rouble is slightly
above 2s.
1 The question of the indebtedness of the
Persian Government falls primarily within the
cognizance of the Foreign Office, but from time to
time 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. is called upon to consKier
chiefly (1) because the Secretary of State for Incha
in Council has advanced money to the Fersian
Government, and (2) because the mam security fo
the British Government loans to Persia is the
customs receipts of Southern Persia, the par of
the country with which India is more intimately
'""'rile 6 Memorandum is intended mainly for de
partmental reference, and an index has been added.
o T n 1899 tliere was mucli discussion as to the
necessity of financial assistance to the Persian
Government. A British loan on the security ofjhe
southern customs was spoken of, wi
loan on the security of the customs of C 'asp i an
Ports ® Communications on the whole subject had
massed between the British and Russian Govern
ments, when on the 30th January the ^cial
Russian Gazette announced that the Russ
Government had decided to sanction a loa
the Persian Government from . B “5" e nn f,?
Prets of 22,500,000 roubles,! roughly 2,2o0,000t.,
^ -rKmenirfinterest and of sinking fund
for the extinction of the loan in 75 years is to be
guaranteed by all the customs revenues of 1 eisia
exclusive of those of Fars and the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
P01 “ In ease of any delay in the payments of the
service of the loan, for which the revenues thus
pledged are at present more than sufficient, the
Bank is to have the right of establishing a control
of the said revenues. The Persian Government
engages to extinguish all its previous external
obligations with the proceeds of the new loan, anc
not‘to conclude without consent of the Bank any
fresh foreign loan whatever until the loan of 1900
has been extinguished. The Persian Government
grants the Bank the right of p acmg, if it thinks
necessary, on the money market bonds of the
Persian Loan proportionate to the unredeemed
amount of the debt, and bearing the full guarantee
n , 1 T Dnooion fJrWPrTimfillt.