Coll 28/39(2) ‘Persia. Printed Correspondence, 1937–’ [‎20r] (39/320)

37
(28)
Demi-official letter from H. J. Seymour, Esq., C. M. G., C.V.O., His
f —\ Majesty’s Minister, Tehran, to H. L. Baggallay, Esquire,
Foreign Office, London, dated the 9th April 1937.
Making plans for the celebration of the Coronation has brought up the
question of the boycott of our Consulates by the Persian authorities. We
have, of course known for some time that only Governors, Chiefs of Police
and Heads of Muncipalities can be expected to accept invitations to Consu
lates, but we have now been told by Watkinson in Shiraz that he has seen
an actual copy of the instructions sent to one of the local Government insti
tutions. It read as follows :— “In accordance with the instructions of
the Ministry of the Interior, on receipt of any invitation from foreign Consu
lates or Consulates General, only Governors-General and Governors and
Assistant Governors and Chiefs of Police and Chiefs of the Municipality
have the right to be present. It is necessary that strict attention should
be paid to these instructions ”.
2. In spite of the existence of this circular, we are advising any Consuls
who consult us about asking Persian officials to Coronation celebrations,
not to limit their invitations to those who are likely to accept, but to send
them out to those whom they would normally have asked. If we confine our
invitations to the few who are allowed to come, we may eventually be accused
of not wanting to invite Persians. It therefore seems better to prove how
ready we are to be friendly by sending out invitations to such persons as
would be asked in a country where conditions in this respect were normal.
(29)
Despatch from His Majesty’s Minister, Tehran, to His Majesty’s
Secretary of State for Foreign Affairs, London, No. 134-E.,
dated the 9th April 1937.
With reference to my despatch No. 117-E. of March 27th last (S. No.
27) transmitting the budget estimates for the financial year 1937-38 (March
21st to March 20th), I have the honour to transmit herewith a translation
from the Journal de Teheran of April 8th, of the supplementary budget law
submitted to the Majlis by the Acting Minister of Finance.
2. The supplementary budget law contains fourteen articles, but only
one of them appears to have any real importance. This is article 6, which
provides from the “national reserves” a credit of £1,000,000 for railway cons-
struction, as well as for a loan of 90,000,000 rials (£1,125,000) from the
Banque Mellie for the same purpose. The Budget estimates, reported in
my despatch under reference, contained a credit of 200 million rials
(£2,500,000) for railway construction, the total estimated cost of which is thus
£4,625,000 for the year.
3. The supplementary budget law is more remarkable for its omissions
than for its content. No provision is made for the sterling requirements of
of the armed forces, whereas for the past few years there has been a regular
vote of £2,000,000. No provision is made for the large textile factories—
to cost more than £1,000,000—for which tenders have been invited, nor for
the four cement factories, nor for the canalization of Tehran’s water supply
nor for the iron and steel plant for which offers have been invited.
4. It is impossible at the moment to say wdiether these omissions presage
a period of strict economy, or whether it is hoped to raise funds by foreign
loan or otherwise, for these purposes. Perhaps the simplest explanation is
that, as the “ national reserves ” do not contain any appreciable funds, it
was not considered possible to vote any appropriations from them. Further
developments, in view of the critical financial situation in which the country
now finds itself, will be awaited with interest.
5. I am sending copies of this despatch to the Department of Overseas
Trade, unnumbered, to the Foreign Secretary to the Government of India
No. 62 and to His Majesty’s Ambassador at Baghdad No. 25.
42(Cj ExAffairsDept.