Coll 28/39(2) ‘Persia. Printed Correspondence, 1937–’ [‎63r] (125/320)

corres-
the exclusive use of Persian in all business and official accounts and
pondence. A transition of these Regulations were enclosed m my circular
despatch No. 29 (S. No. (73) in F. 9-N./37] of the 26th beptember. It seems
probable that similar enquiries may be addressed to you, and I have therefore
thought it well to give you such guidance as I can in answering them.
• 2. It should first be observed that there is nothing in the Regulations
■exempting foreign firms from their provisions, and it is certain that the Iranian
Government would reply to any direct enquiries on this point that foreign
firms, and even foreign concessionary companies, must observe the Regufa-
tions. I do not know of any legal grounds on which the right of the Iranian
Government to irooose the observance of these Regulations on foreign firms
could be contested, and I consider that any enquirers should be informed
accordingly.
3. At the same time it is likely to be difficult for the Iranian Government,
for a time at any rate, to enforce full compliance with the Regulations.
vided that all correspondence with local officials is in Persian or accompanied
by a signed Persian translation and that returns such as income-tax retims
are submitted in Persian, it is possible that nothing more will be demanded.
In the case of internal accounts, enforcement will probably be difficult unless
the books are inspected by Government officials or have to be produced in
Court How probable it is that this will occur wih naturally depend on the
circumstances of each particular firm, and it is impossible to give any advice
applicable to all cases. I understandAhat at least one foreign firm engaged
on the construction of the railway proposes to take no action to comply with
the law in the keeping of its internal accounts. But this firm has an arrange
ment for the payment of a lump sum as income-tax, and its books are therefore
not likely to be inspected. Nor is it likely to remain long in Iran. If the
fin^s to be imposed under Article 5 of the Regulations are hea\y, the Iianian
Government may event rally create posts of inspectors to examine internal
accounts and correspondence. But it is likely to be some time before this is
done, and it will probably be safe for British firms to watch developments at
first provided care is token to avoid drawing any attention to the fact that the
Regulations are not being fully observed. Enquirers should, however, be
warned that if they decide to adopt this course, they will incur a risk of punish
ment for failure to comply with the Regulations.
4 The recoir mendntion that letters addressed to local officials should be
accompanied by signed Persian translations is not intended to apply to letters
from His Majesty’s Consulates. When addressing to local officials letters in
English and Persian, you should continue to sign the English version only.
^ _ ( 8 )
(Received on 23rd January 1938, with Political Secretary's letter No. 1, dated the
6th January 1938.)
[Enclosure in Weekly letter No. 1, dated the 6th January 1938, from
Secretary, Political and Secret Department, India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. .]
Letter from the Manager and Secretary, The Imperial Bank of Iran,
London, to the Foreign Office, London, No. E.-7483/1765/34),
DATED THE 20TH DECEMBER 1937.
We have the honour to inform you that Sir Hugh S. Barnes has retired
from the Chairmanship of The Imperial Bank of Iran, which he has held for
22 vears. He retains his seat oil the Board. The Directors have elected as
Chairman Colonel Sir A. Henry McMahon, G.C.M.G. [Knight] Grand Cross of [the Order of] St Michael and St George (accolade). , G.C.V.O., K.C.I.E., who
has been a Member of the Board for over 20 years.
Letter from the Foreign Office, London, to the Manager and Secre
tary, The Imperial Bank of Iran, London, No. E.-7483/1765/34,
dated the 1st January 1938.
I am directed by Mr. Secretary Eden to acknowledge the receipt of your
letter of the 20th December and to request you to inform the Board of Directors
17(S) FAD