'CORRECTIONS TO MILITARY REPORT ON PERSIA, 1911' [‎5r] (16/112)

5
In March 1912 the two Powers made a small advance of
£200,000 to the Persian Government on condition that Persia
recognised the Anglo-Russian Convention, and devoted part of
the advance to organising a Gendarmerie, {q.v.y
This amount was soon dissipated in pensioning the ex-Shah
and fighting against Salar ud-Dauleh, and the Persian Govern
ment applied to the two Powers again for a large loan. However,
until order had been restored, no financiers were willing to grant a
large loan, without a guarantee from Russia and Great Britain,
and without money Persia was unable to restore order. Hence
she moved on in the same vicious circle.
In September 1912, Sir E. Grey and M. Sazonoff, Russian Anglo-Ruasian
Foreign Minister, conferred at Balmoral on the situation in Per- Polic y*
sia, and apparently agreed on certain principles to guide their
policy in Persia, namely the support of the Central Government,
discouragement of the ex-Shah, the restoration of order by the
Gendarmerie, and the exploitation of the country by railways.
Difficulties, however, arose in putting these principles into
practice. Many Russian representatives in Persia deliberately
disobeyed the orders, which the Russian Government appeared
to give them, and thus hampered all attempts to restore a sound
administration.
In 1912, M. Mornard, the Belgian Director of Customs, was
placed in Mr. Shuster’s position of Treasurer-General. The
Customs department then took over the whole financial ad
ministration of the country, and, though at first M. Mornard
appeared to be too Russo-phil to prove efficient, the Belgian agents
also met with much obstruction from Persian Governors and other
Persians steeped in venahty, yet eventually by 1914 the finances
of Persia had begun to yield a regular income to the Central Gov
ernment. Not little obstruction was met with from Russian,
representatives in the North.
Attempts were made in 1912 by the two Powers to find a new
Regent in place of Nasr-ul-Mulk, who had fled to Europe, and
also to collect a Cabinet to carry on the Government ; but not till
February 1913 did they succeed in any measure. In the new
Cabinet the Bakhtiari element had been entirely eliminated.
The new Cabinet, on the strength o£ another small advance,
made a promise, even without the approval of the Majlis, which
was then non-existent, to grant a railway concession to each of
he two Powers (see Communications).
S170GSB