Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎51v] (102/749)

Proposals made jointly by the British and American Ministers for a permanent
solution of this frequently recurring cause of crisis are now being considered by
the Cabinet. The Cabinet may prefer to resign rather than accept them.
8. The Soviet Embassy has now proposed different terms for a financial
agreement with the Persian Government from those reported in Summary
No. 44/42, paragraph 8. They now propose that they should be supplied with
their requirements in rials against a promise of goods, and that, if the value ofy
the goods imported should be less than the rials acquired, the difference should be
adjusted by the delivery of gold to Persian representatives in Moscow.
internal Security.
Fars.
9. A Government commission is to proceed to Fars to negotiate with Nasir
Qashgai. This tribute to his importance should greatly increase Nasir’s prestige
among the Qashgai and in Fars and make it eventually much more difficult for
the Government to re-establish control over the tribes and order in Fars. which
is now at the mercy of the Qashgai. It is clear that Nasir’s political supporters in
Tehran have been able to influence the Cabinet.
Khuzestan.
10. Reinforcements of one battalion of infantry, some cavalry and mountain
guns have been sent to Dizful with a view to maintaining order among the Arab
tribes who have been marauding in that area.
Russian Affairs.
11. The Soviet Embassy has presented to the Persian Government a draft
contract for the supply of arms and ammunition to be manufactured in the
Persian munition factories. The contract is for 60,000 rifles, 42 million rounds
of small-arms ammunition and 30,000 machine pistols to be delivered in periodic
quotas during the course of a year. The Soviet Government undertakes to supply
the necessary raw materials and additional tools that may be necessary.
Twenty-five thousand rifles are to be handed over from stock immediately on the
signature of the contract. By agreement with His Majesty’s Government, the
Soviet Government has first claim on the products of the Persian munition
factories.
12. The Soviet authorities have at last agreed that the Persian Government
should be urged to take air-raid precautions in Tehran. Hitherto their attitude
has been that the danger of air raid was too remote to warrant alarming the
population, and the Persian Government were only too ready to accept this view
rather than that of the British authorities. |
A merican A fj'airs.
13. A Bill has been laid before the Majlis to authorise the employment of
the American. Dr. Millspaugh, as Director-General of Finance. The Bill gives
him considerable powers in the control of finance and of the officials of the
Finance Department. Dr. Millspaugh was Adviser to the Persian Ministry of
Finance from 1923 to 1927.