Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎46r] (91/248)

result of inefficient distribution or lack of transport facilities. Distribution,
Dr. Millspaugh’s main task in recent months, improved slightly, especially as
regards pharmaceuticals, but still fell short of what was required.
59. Russian economic penetration is increasing, particularly in the northern
provinces. Once again the Soviets are trying to impose an inequitable bargain
on the Persian Government in connexion with the purchase of rice in the north.
-"Srhe Russians continue to sell cotton piece-goods, sugar (believed to be lend-lease)
and other goods on the open market for what they will fetch, and still show no
signs of wishing to co-operate with the other Allies on supply matters. Nothing
more has been heard from them about the proposal to set up with the Persians
a Higher Supply Committee do co-ordinate civil supplies for this country.
Cereals and Agricultural Development.
60. The grain situation in the country as a whole was satisfactory at the
end of September. Total stocks held on the 22nd September amounted to
109,905 tons, and the grain available in the Tehran Silo constituted sixty-four
days’ supply for the capital. The current harvest is generally satisfactory and
no shortage of grain is expected during the coming winter. ^ The difficulty of
making available a sufficient quantity of seed-wheat for deficit areas of* the
Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. littoral has been partly overcome by the provision of 1,000 tons
of seed at reasonable rates by the Government of India.
61. Various projects for the development of agriculture in the country,
chiefly by the construction of irrigation works, have been under consideration
by the Central Government. Requests for supplies of machinery and other
equipment for these projects have led to the deputation by the Middle East Supply
Centre of two experts to enquire into the soundness of the schemes and the need for
the plant demanded. Such investigaation is very necessary in order to prevent
the initiation of projects such as the Hamidiah Farm scheme in Khuzistan
which are fundamentally unsound and which have little hope of proving
successful.
Transport.
62. Railway traffic on the Trans-Iranian Railway was adequate for civil
needs in spite of the great volume of aid-to-Russia goods carried northwards.
Oil stocks for civil consumption remained adequate throughout the country.
Road transport was still precarious and was maintained at its comparatively low
level of efficiency only by the unremitting efforts of the Persian Government’s
Road Transport Administration, which has a number of American and British
staff. Vehicles belonging to the Road Transport Administration are wearing
out quicker than they are being replaced, in spite of the arrival so far this year
of over 200 new trucks. The arrival and distribution of a large consignment
of spare parts has, however, eased the position temporarily. Lack of passenger
cars is greatly hampering the work of the administration, but the Government
still do not appear to be strong enough to mobilise private cars, which still tour
the country in considerable numbers.
63. In this sphere also the Russians are pursuing their own designs
regardless of anybody else. Iransovtrans, the Soviet transport agency An office of the East India Company and, later, of the British Raj, headed by an agent. , are
opening up in those parts of the country accessible to them, with the intention
of competing for ordinary civil traffic with the Road Transport Administration :
this on trucks and tyres supplied under lease-lend for war purposes!
/
v Oil Concessions.
64. In paragraph 22 (b) of my despatch No. 156 of the 6th April, I
mentioned that the Standard Vacuum Company and the Shell Group—backed
by the American and British Governments respectively—were competing for oil
concessions in Persia. (To them was later added the American Sinclair Com
pany.) His Majesty’s Government agreed at an early stage with the United
States Government that neither would put pressure on the Persian Govern
ment, and His Majesty’s Government instructed this embassy to support the
Shell Group but not to go further than was usual on behalf of reputable British
interests and not to go further than United States Embassy. Late in June
His Majesty’s Government expressed disappointment regarding the delay in
reaching a decision and this embassy replied that the situation involved three
fundamental points : (a) whether the Persian Government intended to grant
a concession before the end of the war; (b) whether on political grounds they