Coll 29/118(7) 'Disposal of unwanted consular property in Bushire' [‎28r] (55/234)

FOREIGN OFFICE, S.W.l.
23rd May, 1949,
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Dea^-Qrook,
Please refer®to telegram No* X 887 from the United Kingdom
High Commissioner in India to the Commonwealth Relations Office on the
subject of the Bahmani electric plant, about which we have spoken on the
telephone recently*
The obvious solution of the problem of payment for the generator and
static balancer would be to pay for them out of the proceeds of the sale
of the electric plant* Ross^ letter to Selby of the 1st December, however,
to which reference is made in this telegram, makes it clear that this course
is not practicable, as Crompton Parkinson require payment in rupees Indian silver coin also widely used in the Persian Gulf. , and
the transfer would involve us in exchange control difficulties, I am not
conversant with Persian exchange control regulations, but presumably
the assumption has been in the past that, when the final settlement is
made, all three Governments concerned would use the rials they would then
receive for current purposes in Persia and the question of transferring the
money elsewhere would not therefore arise.
In the circumstances it seems to me that the simplest arrangement
might be to pay over to the Indians in Persia out of the proceeds of the sale
of the Bahmani plant the equivalent in rials (at the current official
rate of exchange) of the Rs 4780 which is owed to Crompton Parkinson.
This would be on condition that they then paid the bill,and with the
stipulation that it was without prejudice to the final settlement or to the
rates of exchange to be used when the final settlement was worked out*
Alternatively - and, I think, preferably - we might pay over to them
the whole proceeds of the sale of the plant on the same conditions.
K.R. Crook, Esq*,
Commonwealth Relations Office,
Downing Street, S.W,1.