Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎191r] (381/749)

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5 June 8, 1944.
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Section 1.
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*Sir R. Bullard to Mr. Eden.-—(Received %th June.)
Copy No.
(No. 231).
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. 21, for the period of the 22nd to
28th May, compiled by the military attache to this legation.
Tehran, 29£A May, 1944.
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Enclosure.
Military Attache's Intelligence Summary, No. 21, for the yeriod 22nd May to
2Sth May, 1944.
(Secret.) —
Political.
Persian Affairs.
1. The future of Dr. Millspaugh and his mission has been the main topic
of interest during the past week. There has been much lobbying, and the matter
was discussed in one secret session of the Majlis. There is a strong feeling,
even among his sympathisers, that Dr. Millspaugh has taken upon himself a
/'heavier burden than he can discharge and that he should be relieved of some
of his responsibilities and with them of some of the extensive authority given
to him. Others think that he has proved himself to be unsuitable and that he
should be replaced by another American. Others, again, wish to see the whole
American mission depart. Whatever solution is found it is unlikely that the
position and authority of Dr. Millspaugh will remained unaffected.
2. The case of Dr. Millspaugh has been summed up by a Deputy in a
question to the Minister of Finance in the following terms
(i) Far from Dr. Millspaugh having brought about a decrease in the cost
of living, prices have continued to rise. When he assumed his duties
with extensive powers fifteen months ago the cost of living index
was 750 (as compared with 100 in 1936) whereas to-day it is 1,250.
(ii) In spite of the extensive powers given to him over transport and
distribution he had failed to ensure a satisfactory distribution
of essential commodities, and the poor were worse off than they had
been before his arrival.
(iii) His only attempt to check inflation had been to encourage the purchase
of foreign exchange, with the result that during the past year much
capital had gone abroad.
(iv) He had failed to take full advantage of the quota of imports allotted
to Iran by the Allies.
(v) In spite of" the fact that the harvest of the last year had been almost
unprecedented in quantity the responsible organisation under his
control had failed to build up any appreciable reserves of grain.
(vi) He had not improved the financial situation; although capital
expenditure had ceased the budget was not balanced and expenditure
greatly exceeded income.
(vii) He had insisted on the passing of an Income Tax Law which was not
suited to the country and would result in reducing the productive
power of the country, particularly in agriculture, and in a decrease
of national income.
(viii) In the administration of the departments under his control there were
extravagance, disorder, irresponsibility and lack of attention to
public duty.
[54—32]
RESa. n