Coll 28/39(2) ‘Persia. Printed Correspondence, 1937–’ [‎16r] (31/320)

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■Despatch from His Majesty’s Minister, Tehran, to His Majesty’s
Secretary of State for Foreign Affairs, London, Ho 117-E
dated the 27th March 1937. ‘ ’
With reference to my despatch No. 95 E. of 12th March (S. No 25) I
have the honour to transmit to you herewith the detailed estimates of
in " V f f ° r l i 6 T®t r ' 131 n (2 r lst March 1937 t0 20th March 1938) published
"V Le Journal del eh eran ’ of 21st and 25th March. The totals of this bud-
get show an increase of about 25 per cent on the previous year’s estimates.
uJ' 0n , the T ev ® nu . e side an increase of 26,000,000 rials (£325,000) over
Wnk Traao iXn 1 ? ate ex P ected from direct taxation and about 31,200,000
rials (£390,000) from indirect taxation. These increases are anticipated from
axes already in force, not from new taxation to be introduced. The re-
ceipts from Customs are expected to yield 62,000,000 rials (£775,000) more
than last year s estimates. Estimated revenue from the tobacco, opium and
cotton goods monopolies amounts to 50,000,000 rials (£625,000) : the cement
ffononnoi e £P ected to produce an increase of 47,400,000 rials (nearly
(£600,000). There are, however, various credits sanctioned in connection
with these industries. An increased yield of 15,000,000 rials is expected
from mines ; this presumably includes the increased sales of red oxide but
Asarek S ° ' C connected wlth the development of copper and nickel ores at
. , 3 - °? the expenditure side an increase of 40,000,000 rials (£500 000)
is shown from the Ministry of War, the estimate this year, including the gen-
darmine, amounting to 300,408,360 rials (about £3,867,600), a little over
at sl^OOOOrf Wh w 6 bud 8 et - r A credit to help the sugar factories figures
at 33,500,000 rials. No revenue from sugar factories is shown although all
eight will be in operation. Most of them are probably running at a loss* An
narfnfH, V ° te °/ 20 ? milllon ” al ® (£2,500,000) is provided in respect of that
J ar of the construction payable in Iranian currency.
. . ^^ expenditure on public Health remains unchanged, but a nro-
vision of 5 000,000 rials is made for a hospital in Tehran. With more ade
quate health services, including drainage and water canalization, there would
■ he less need for hospitals but m spite of the largely increased budget no
money is apparently available for such essential services. There is a small
increase of 4 000 000 rials (£50,000) in the Education estimates possibly to
meet the cost of the evening classes for illiterate adults. 1 ^
•it 5 * ? h L e ^ imate for tile department of Mines has been raised from 12
million to 34,000,000 rials, probably largely on account of the Asarek develop 2
ments referred to in a preceding paragraph. Interesting new items under the
estimates tor this department are the provision of 10 million rials (£125 0001
for a glycerine and soap factory An East India Company trading post. and 9 million rials (£112, 500) for a factory An East India Company trading post. to
is dbscmre connection between these two projects and mining
6. Other expedinture items include an additional 5,000,000 rials for
agriculture which does not suggest any striking new developments ; a further
ririf(£ 5 () 10001 0 fn?^ rialS f ° r th6 C1 ^ arett f, and tobacco factory An East India Company trading post. , and40,000,000
rials (£o0J,000) for remaining expenses”—presumably in addition to foreign
^^(wToon - /^?^^ stc ^°J r of seven grain mills. A further credit of
30,000,000 (£375,000) is allotted for the stabilization of grain prices, although
the company set up last year to effect that stabilization is understood to be
m liquidation. A credit of 70 million rials (£675,000) is provided for in sneci
7v e na£rm 1C - economic enterprises, and a further credit of 74 million rials
port’ 7 ° U 18 ° n aCCOUnt of the ex P ensive dredger required for the Caspian
, / cursory examination of the estimates would suggest a very health v
state of things ; revenue increasing by 25 per cent without additional tax/-
tion, a balanced budget, and a large share of the expenditure bein^ devoted
to improving the economic equipment and resources of the country Until
such time as the Iranian Government see fit to publish statements of actual
42(C) ExAffairsDept -1