Coll 28/97 ‘Persia. Diaries. Tehran Intelligence Summaries’ [‎191v] (382/749)

2
This is a moderate statement of the criticisms usually made of Dr. Millspaugh
and his mission. A reply was given by the Minister of Finance in a secret
session of the Majlis.
3. Criticism of the Prime Minister by the press is increasing. It is true
that Sa’ed has few qualifications other than honesty and a fatherly manner. His
ignorance of conditions in his own country, which has become a by-word,
increases the indecision that naturally results from his dislike of being unpleasant
to anyone. One of the Russian-inspired papers says : “ The feeble Governmen
of Sa’ed is completely dominated by the dangerous schemes of the Minister of
the Interior.” The Minister of the Interior, Hajher, is regarded by the Russians
as being friendly to British interests.
Economic.
4. In his report for the month the 22nd January to the 20th February
Dr. Millspaugh notes that the loss in ten months on the commercial transactions
of the Government, which include the Government factories and monopolies and
the operations of the Cereals and Bread Section, amounted to 1,033,987,000 rials.
The greater part of this loss was due to the difference between the price paid for
grain purchased and the price received for bread sold. During the first ten
months of the financial year 1943-44 the total excess of expenditure over receipts
amounted to 1,242,762,000 rials.
5. Among numerous questions tabled in the Majlis during the past week
are questions relating to the budget of the State Railway, where it is stated that
during the past twelve months the Allies have paid to the railway the sum of
686,040,510 rials for the transport of war material; the organisation of the State
Railway after the war, with particular reference to the disposal of the large
number of employees who will become surplus; the provision of compensation
for employees injured while working for the railway or for their dependents in
the case of their death; the distribution of rationed and monopoly goods; the
unsatisfactory financial condition of Government factories.
6 . Judicial Commission of Enquiry was sent to Meshed to investigate
scandals in the sugar factory An East India Company trading post. and in connexion with certain transactions in wheat.
Their investigations have resulted in the arrest of the local Director of Finance,
two other finance officials, the manager of the sugar factory An East India Company trading post. and the Chief of the
City Police.
Internal Security.
Ears.
7. It has been decided to abolish the Southern Army Headquarters, which
were formed for the purpose of combining operations against the tribes of Fars
of the Isfahan, Khuzestan and Fars Divisions. As there is no intention of
carrying out such operations, there is no purpose in retaining the Southern Army
Headquarters. General Jahanbani, who is now in Tehran, will not return to
Shiraz. General Muhammad Hussein Firuz will probably go to Fars as Governor-
General and Officer Commanding Troops, a position he held in 1942. He is
popular with and respected by the people of Fars and is more likely to hold the
balance more fairly between Qashgai and other tribes of Fars than General
Jahanbani.
8 . There have recently been outbreaks in Abadan against the local Bahais,
the first of which resulted in the killing of two Bahais and the burning of one of
their houses. A later outbreak is reported to have been effectively dealt with by
Persian troops and the ringleaders have been arrested. It is considered that these
outbreaks have been instigated for some political purpose connected with the
elections.
Khuzestan.
9 . Operations will probably shortly be begun by the Persian army in the
Shushtar-Mianab area for the punishment and disarmament of brigand bands
and the recovery of property looted by them.
10. It is reported that the sheikhs of the Beni Ka’ab, of the Muhaisin and
of the Beni Turuf have entered into an agreement for mutual aid and co-opera
tion in resisting demands by the Government in matters of conscription and of
the collection of the coming harvest. His Majesty’s Consul at Khorramshahr
reports that this alleged agreement is arousing considerable interest among the
sheikhs of other Arab tribes.