Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎53v] (106/248)

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States, the problem of the Persian police was far beyond his capacity. Indeed, it
is beyond the capacity of any one single foreign adviser.
62. The police, like the other security forces, is now faced with a cut in its
budget demands which will necessitate either the cancellation of the inadequate
increases of pay recently granted or a reduction in numbers that will remove all
chances of the force being able to perform the duties required of it.
Persian A ir Force.
63. The fifteen Anson aircraft for the Persian Air Force are in course of
- delivery and erection in the Middle East, whither a party of ten pilots and five
technical officers and men are shortly proceeding to be taught how to fly and main
tain them. The Persians have not been able to nominate a suitable officer for the
summer course at the Middle East Staff College.
64. The Persians have now taken over the repair and maintenance of their
aircraft which was previously done, under agreement, by the Royal Air Force at
Doshan Tappeh. They are being assisted in this and in their general organisation
by Royal Air Force personnel.
65. Efforts are being made by the Persians to establish a rudimentary
meteorological service. The Persian meteorological officers have returned after
attempting, with partial success, to follow a course in Middle East.
66. Sarlashkar Hussein Firouz is relinquishing the command of the air
; force on appointment as Governor-General and Officer Commanding Troops in
; Fars. His successor-designate is Sarlashkar Ahmad Nakhchevan, who is said to
be accepting the post with reluctance under pressure from the Shah. Nakhchevan
was largely responsible for building up the air force, which he virtually ran from
1927-36. Since he was Minister of War in 1941-42, he has held no active com
mand and shown more interest in cards than aircraft. He is unlikely to infuse
much discipline or energy into the air force, which sadly needs both.
Civil Air Lines.
67. The Persian State Airline has asked and obtained leave to use Mehrabad
airfield as its terminal. This airfield is used by British Overseas Airways, and
the arrangement should serve, together with the shortly expected delivery of
three de Havilland aircraft of the Rapide type, to maintain British influence in
IjPersian air communications. Meanwhile, an experimental service to Isfahan,
Shiraz and Bushire has been started with a light aircraft of the Flying Club.
68. The Russians, apparently without previous notice to the Persian
Government, have started air services with Douglas C. 47’s between Tehran
and Meshed, Tabriz and Resht. These are professedly official in character but
are much used and appreciated by Persians on a commercial basis as the aircraft
are comfortable and the fares moderate. The present frequency is about twice
weekly to Meshed and once a week on the other services. This may be increased.
Finance.
69. During the last few weeks the outturn for the financial year 1322
(ending on the 20th March, 1944) has been published. The deficit on the
ordinary and commercial budgets taken together is 1.372 million rials (as
compared with 753 million for the year 1321), which is not far from the deficit
of 1,058 million originally estimated. The commercial budget is responsible for
933 million of the total deficit.
70. The budget for the year 1323 is shortly coming under discussion by the
Majlis. It shows ordinary revenue as 3,958 million rials against estimated
expenditure of 4,569; while in the commercial budget revenue is placed at 6.367
million and expenditure at 5,735. The surplus is 470.391 rials. How far this
estimate is accurate will depend largely on the extent to which the Administrator-
General of the Finances, Dr. Millspaugh, will be able to carry out his intention of
turning over part of the Government industrial undertakings to private enter
prise and reforming the management of the remainder. In general his task
should be less difficult than it was a year or even six months ago. It is true
that prices are still rising, the cost of living index in Tehran, which was 1,082 in
February, having been 1,083 in March, 1,167 in April and 1,201 in May. Over
the last seven or eight months, however, the increase in the price indices has been
much less steep than formerly, and there are signs that a certain stabilisation of
prices may be reached and maintained within a reasonable period and the figures
may then Uirn downward, provided that the Millspaugh Mission remains without
serious curtailment of its powers. The improved distribution of food and other
goods, promised by Dr. Millspaugh, will assist in improving the situation.
Favourable war news has also already had some effect in decreasing prices.