File 4345/1912 'Trans-Persian Railway' [‎11v] (27/330)

earmarked for special purposes in the south. The Russian Government were indifferent
to independent financial steps taken by the Bnteh ^ the
stipulated that advances to the Central Government at Tehian should not exceed the
Arthur explained that a
speciaUoan of 100,0001 was to be made from Bntish-Indian funds to the Governor
General of Ears in order to establish order and security on the trade routes. It was
hoped that the employment of forces organised by the Persians themselves would
serve the purposes of re-establishing law and order m the disturbed regions, and that
this would obviate the necessity of military measures on a larger scale winch & t
otherwise have to be undertaken by British-Indian foices. . ••
With such results as, it was hoped, would be obtained by these measures, and
with such guarantee for better administration as the present Persian Government
seemed to promise, in the opinion of His Majesty’s Minister at Tehran it was hoped
by the Foreign Office that the Societe d’Etudes would shortly be able to dispatch
their delegates to Tehran to examine the financial position of Persia and to report on
To J this Lord Bevelstoke replied that the primary object of the delegates visiting
Persia was to obtain a concession for a trans-Persian railway, and the financial question
was always considered as entirely separate from that of the railway.
If, therefore, the railway project was to be curtailed, amended, or modined m sue
a fashion as no longer to appeal to the various interests in the Societe d Etudes,
Lord Bevelstoke did not see how the dispatch of delegates could be justified to the
promoters of the societd. Considerable expenditure had already been incurred without
much prospect of return. ^ _ .
Another reason for hesitation was that the principle of lending money to Persia
had never actually been laid before the Societe d Etudes as.a whole, although ceitain
financial interests in this body in London and Paris had at times icferred to the
matter. _ _ . .
The question of financing Persia under the conditions at present obtaining there
and on the European markets hardly admitted of serious consideration. ^ Lord Bevel
stoke at the same time fully recognised the difficulties of the situation, and was
anxious to place his services unreservedly at the disposal of the Foreign Office if they
considered he could be of any assistance towards finding a solution of the problem.
In his opinion, the first question was that of the conditions under which any financial
delegates were to proceed to Persia. The cost would be considerable, and it would
be difficult to justify the societe dispatching delegates to Persia for purely financial
investigations, especially should that body, rightly or wrongly, consider their railway
projects as put aside by the British Government. The most reasonable solution to
the first stage in the financial problem would therefore seem to be that delegates sent
to Persia should proceed under Government auspices, and that no charges in this
connection should fall upon the Societe d’Etudes so long as purely financial investigations
were pursued.
Before leaving, Lord Bevelstoke mentioned that he was going over to Paris next
week, and suggested that, before proceeding there, it would be useful to learn the
Foreign Office views on the trans-Persian railway and loan questions. Sir Arthur
therefore suggested that conversations should be resumed on Tuesday, the 25th February,
after the Foreign Office had had an opportunity of studying Sir William Garstin’s latest
letter.
February 20, 1913.