'Memorandum respecting Financial Assistance to Persia (continued up to February 5 1903)' [‎148v] (10/12)

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Government to have been concluded indepen
dently of the loan.
Prom statements made by the Grand Vizier,
it is clear that the loan was absorbed almost at
once by the cost of the Shah’s journey, the pay
ment of the army and general current expendi
ture. In November Sir A. Hardinge reported a
prevalent belief that scarcely any of it remained,
and that the Shah had been compelled to borrow
money from a private trader at Baku in oi’der to
complete his return journey to Tehran.
Persistent rumours circulated at this time that
a new loan was about to be obtained from Prussia.
The Zil-es-Sultan believed that it was to be for
3,000,000/., and would involve a railway Con
cession. The Grand Vizier, however, informed
Mr. Erskine that nothing but some extraordinary
circumstance, such as a third visit oi the Shah
to Europe, would induce him to resort to further
borrowing. At the same time, his Highness
admitted that he saw little prospect of paying
off previous loans.
A telegram, marked “ Private,” was received
from Sir A. Hardinge on the 13th January, of
which the following is the material portion :—•. •
“ Naas intimated yesterday, in guarded terms, that
Persian Government would be glad if we could assist
Imperial Bank of Persia to make advance to them.
They must have 300,000/. to 400,000/. by 21st March.
I believe that they have tried Russians, who are said
to require as a condition Russian, in place of Belgium,
employes in the Customs.
“ If ; however, a loan through the Imperial Bank is
still objected to, would you entertain the idea of
advance of 400,000/. by Indo-European (Telegraph)
Department on royalties and receipts due by it to
Persia under Telegraph Convention of August 1901,
and secured on general revenues of the line, or, failing
and pending these, mail receipts on southern customs ?
In fact, [on] much the same lines as the advance
offered by D’Arcy last spring. Interest 5 per cent., but
with condition that should loan be repaid before five or
ten years, it should be computed at, say, lo, or perhaps
20, per cent, per year.
“ I do not know whether Grand Vizier would dare
to accept assistance on these lines, and I have said
nothing to him on financial question beyond that I felt
sure that we would do what we could to help him ; but
I think that we should have a proposal ready.
“ Customs would bear another loan of nearly
1,000,000/. or 2,000,000/. if those of Gulf ports are
pledged to Russia. Of course, the larger sum we could