Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎48r] (95/749)

Slfito S>vjcL>uft.
THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT
PERSIA.
6-kxaxsL & *
November 11, 1942.
SECRET.
Section 1.
[E 6601/19/34]
A. N. f '
M- £ • w
Copy No.
Sir R. Bullard to Mr. Eden.—{Received November 11).
(No. 358).
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. 43 for the period the 21st to
27th October, 1942, compiled by the military attache to this legation.
Tehran, October '27, 1942.
(Secret.)
Enclosure.
Military Attache's Intelligence Summary No. 43 for the 'period October 21 to 27,
1942.
Persian Affairs.
1. HOSTILITY to the Government and to the Allies is being very openly
expressed, the Government being criticised for failure to protect Persia’s interests
and the Allies being blamed for all Persia’s ills. High and still-rising prices are
attributed to heavy buying by the Allies and to their recurring demands for
increases in the currency issue. Shortage of food-stuffs is said to be aggravated
by heavy consumption by the Allies, by their monopoly of much of the country’s
means of transport, and by their deliberate prevention of the removal of grain
from the areas in their military occupation. Both the press and the Deputies
have shown increasing boldness in scarcely-veiled expressions of hostility, knowing
that for once they are really expressing the views of the people. The Majlis is in
no mood to support the Government in any measure that favours Allied interests.
Axis agents find good material for effective propaganda among an already
irritated people.
Economic.
2. The Government has not dared to proceed with the Bill it laid before the
Majlis for an increase of the note issue by 2,000 million rials owing to the violent
opposition of the Majlis. It did, however, succeed in getting passed a Bill for an
increased issue of 500 million rials, nominally to finance purchases of food-stuffs,
in spite of its having found only two Deputies with courage enough to speak in
its support.
3. Public feeling is greatly excited over the recurring increases of currency
issues. Propaganda tells them that this is leading to a catastrophic depreciation
of the rial, which will result in the financial ruin of Persia and, more immediately,
to a rise in prices that will make the cost of living almost prohibitive for the poor
man.
4. Tehran has managed to stave off a bread crisis, but it lives from day to
day, and there is not even one day’s reserve of wheat in the Government grain
store. Kermanshah is in little better state, and local officials are refusing to send
to Tehran the wheat on which this town is nornially dependent. The Soviet
authorities have promised to facilitate the transport of some quantity of grain
from Azerbaijan and Khorassan. But they have also asked for 30,000 tons of
rice, 5,000 tons of wheat, and 15,000 tons of barley to be deliv^ed to them.
5. The increase in the official buying price has not yeN brought much
additional wheat on the market. Some hoarded stocks have be6n discovered,
which temporarily relieved the situation in Tehran, but in spite of x t|ie critical
situation and public anxiety, amounting almost to panic, regarding the possibility
of famine, there is little indication of serious endeavours to force hoarders and
speculators to produce their stocks.
[35—34]