Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎46r] (91/749)

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY’S GOVERNMENT
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PERSIA.
SECRET.
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A. H.
H. E.W
November 5, 1942.
Section 3.
Copy No. J 0 2
Sir R. Bullard to Mr. Eden.—(Received November 5.)
(No. 348.)
HIS Majesty’s representative presents his compliments to His Majesty’s
Principal Secretary of State for Foreign Affairs, and has the honour to transmit
herewith a copy of Intelligence Summary No. 42 for the period of the 14th to
20th October, 1942, compiled by the military attache to this legation.
Tehran, October 20. 1942.
o
Enclosure.
(Secret.)
Military Attache's Intelligence Summary No. 42 /or the Period
October 11—20, 1942.
Persian Affairs.
Political.
THE Government is faced with difficulties that at the moment appear to be
almost insurmountable. In the first place, Tehran has wheat for only a couple of
days, and supplies that have been expected from North Persia for some days past
have been stopped by the Russian military authorities. In the second place, the
Bill it has laid before the Majlis for a further increase of the note issue has
evoked much hostile criticism, and on both these questions public resentment is
being aggravated by the enemies of the Government and the Allies. It is very
probable that the Bill for the increased note issue would in its present form be
rejected by the Majlis if it were put to the vote unless the Government could
announce some compensating benefit to offset the inevitable inflation—-a benefit
that would have to be provided by the Allies. Feeling is already running high,
and if the bread supply is not somehow assured riots may be expected. Ihe
position of the Government is undoubtedly very difficult.
2. Opposition to the Government is being worked up by interested persons
and by that large irresponsible class always ready to criticise any Government.
The Deputies are being particularly unruly; this may be due to their expectation
that the present Majlis may be dissolved and to their desire to bring themselves
to the notice of their constituents with a view to re-election. The Cabinet itself is
by no means united, and there the Prime Minister finds opposition to the strong
action which he might favour. He has already informed the Shah that he is too
occupied with other problems to be able to devote the necessary time to the
Ministry of War, and has asked the Shah to nominate someone else for that port
folio. This, however, is not the only reason why he wishes to be relieved of the
Ministry for War. He has antagonised the Chief of the General Staff by rather
offhand treatment; the latter offered his resignation to the Shah, who refused to
accept it, and the Prime Minister is said to have interpreted this as an indication
that the Shah would support the Chief of the General Staff’. Relations between
the Ministry for War and the General Staff are not happy.
Economic.
3. Previous issues of rial notes being practically exhausted, the Government
has been obliged to lay before Parliament a Bill to authorise the progressive issue
during the period up to the 23rd August, 1943, of notes to the value of 2 milliards
of rials. In the preamble to the Bill the Government argued that, since the world
price of gold was more than double that at which, according to a law of 1931. the
gold reserves of the Persian Government were valued, a further issue of notes was
fully justified. As further justification, it said that the Government of India was
prepared to sell 120 tons of silver, that the Allies would, as far as was possible,
import food-stuffs and other merchandise, and it recalled the fact that 40 per
cent, of sterling credits were convertible to gold. The gilding has not made the
Bill palatable to the Deputies or the public.