Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎87r] (173/749)

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THIS DOCUMENT IS THE PR OPERTY OF HIS BRITANNIC MAJESTY’S GOYERKM^T
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PERSIA.
SECRET.
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'April 22.
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Section 1.
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2333/110/34] Copy No. H
/?. Bullard to Mr. Eden.—{Received April 22.)
(No. 140.)
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. 14. for the period the 31st March
to the 6th April, compiled by the military attache to this legation.
Tehran, April 6. 1943.
Enclosure.
(Secret.)
Military Attache's Intelligence Summary No. 14 for the Period March 31 to
April 6, 1943.
Persian A (fairs.
Political.
THE atmosphere is disturbed. The Government has shown no firmness
in dealing with the agitator or with a very subversive press, although a few of
the worst papers have been suppressed. The discontent of the lower classes is
being fanned; the Tudeh party continues to acquire adherents; and there is
anxiety lest the agitation should lead to strikes and sabotage by workers and
peasants. New political parties are springing up, usually claiming to represent
1 youth and the working classes, and the Government has felt obliged to authorise
; the Military Governor to prohibit all political meetings in Tehran. Criticism
of the British in the press and in popular talk continues; and a rather bitter
attack was made in the Majlis, which was, however, well answered by Tadayyun,
the Minister of Food.
2. There is reported to be a split in the Tudeh party, one section following
the original founder, Abbas Iskandari, and dissentients being led by his son,
Iraj Iskandari, and Suleiman Mirza. The latter section is said to object to the
inclusion in the party programme of a statement to the effect that the party is
national and has as one of its objects the preservation of the independence of
Persia.
3. The Queen Mother and the Princess Shams (sister of the Shah) have
returned from their visit to Egypt.
Economic.
4. Dr. Millspaugh’s first monthly report is of interest. In a review of
Persian economy in recent years he notes the decline of agriculture, the excessive
urbanisation, the lack of progress in hygiene, the extravagant growth of
administrative organisations resulting in a spendthrift expenditure, and the
gradual demoralisation of character that resulted from all power and initiative
being in the hands of a few. On the other hand, he gives credit fdr the
construction of railways and roads, the development of commerce and the
foundation of national industries. In commenting on the rise in the cost of
living he points out that it is due only in part to the inflation caused by the
heavy expenditure of the Allies in rials; it is also due to unbalanced budgets,
which necessitated heavy borrowings by the Government from the National Bank;
to the weakness of the Government, which, on the one hand, occasioned a lack
of confidence in the cover for the note issue, and, on the other, took no adequate
measures for the stabilisation of prices; and to speculation and hoarding. The
indebtedness of the Government in January 1943 was 3,400 million rials, whereas
in March 1942 it had been less than 2J million. The revenue during the first
nine months of the Persian year 1321 (the 21st March, 1942-20th March. 1943)
showed a decrease of 672 million rials in comparison with the same period of
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