Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎148v] (296/749)

Government) showing revenue at about 5,796 million rials, and expenditure at
about 5,897 million rials, or approximately self-balancing.
Dr. Millspaugh had already indicated in one of his recent Monthly Reports
the probability of a large budget deficit, which, he recommended, should be met
by a foreign loan. The Majlis, however, are opposed to Persia asking for foreign
financial help, and accordingly proceeded to balance the budget by bringing in as
an item of revenue the value (approximately 1,500 million rials) of the stocks ot
commodities held by the various Government trading agencies at the beginning 1
of the current financial year.
8 . Dr. Millspaugh has made further concessions to the householder in the
matter of obtaining flour in addition to that reported in Summary No. 43/43,
paragraph 2 . He has now issued a regulation which permits heads of families to
purchase, but only from proprietors who have fulfilled their undertakings or from
peasants, wheat foi* consumption by their families at the approved scale of
180 kilog. for each member. Licences to purchase will be issued by the Cereals
and Bread Department, and the wheat purchased must pass through one of the
warehouses of the department from which delivery may be taken on production of
ration cards.
9. The Majlis has passed the Bill authorising the Government to borrow
from the National Bank the amount of 400 million rials to finance the purchase of
grain until the end of the current financial year—see Summary No. 43/43. para
graph 5—also a Bill granting a credit of 20 million rials to the Pharmaceutical
Institute for the purchase of drugs.
10. The Majlis has passed a Bill sanctioning the engagement of two
American experts for service with the Ministry of Hygiene. One is to be director-
general of the Service of Hygiene and the other director of the Pharmaceutical
Institute.
11 . On the 16th November the Shah opened the Machine Gun factory An East India Company trading post. , or
rather that part of it which has been completed, to manufacture machine pistols
for delivery to the Soviet authorities in accordance with the contract they made
with the Persian Government—see Summaries No. 45/42, paragraph 11, and
49/42, paragraph 15. The contract was for the manufacture and supply by the
Persian Government of 60,000 rifles, 42 million rounds of ammunition and 30,000
machine pistols. As regards machine pistols, the contract stipulated that 4,000
should be delivered in August 1943 and the remainder at intervals before
December 1943. The delay in completing the factory An East India Company trading post. is due to the failure of the
Russians to provide certain machinery in time. At the official opening it was
stated that the capacity of the factory An East India Company trading post. was now 60,000 machine pistols a year and
was capable of being increased to 100,000. It was expected that 30,000 would be
completed by the 20th March, 1944. The Soviet authorities have not yet made any
agreement regarding payment for these arms.
Persian Forces.
12. The Shah is incensed by the opposition in the Ministry for War and the
General Staff to his military secretariat, and General Ridley's plain expression of
opinion that such an institution was unnecessary and injurious has not disposed
him more kindly to the American advisers. He vented his anger on General Riazi,
the Chief of Staff, when the latter supported General Ridley’s views, by accusing
him of being an informant of the British Legation and disloyal to himself.
13. Twelve officers of the Persian Air Force left Tehran on the 21st November
for training in England by the Royal Air Force.
A p'pointments — Military.
14. —(i) Sarhang Mahmud Sartipi to be second in command of the
2nd Division.
(ii) Sarhang Muqbeli to be Chief of Staff of the Forces of the South.
(iii) Sarhang Bahrami to command the 6 th (Fars) Division.
(iv) Sarhang Dadsetan to command the 16th (Kazerun) Brigade (Fars
Division).
(v) Sarhang Himmat to command the 17th (Jahrum) Brigade (Fars Division).
(vi) Sarhang Mustashiri to command the gendarmerie of the Khuzistan and
Lurestan Gendarmerie District.
Internal Security.
15. Tribal migrations this year have been accompanied by very little dis-
i turbance, and generally throughout the country there is an unusual degree of