'Military report on Tehran and adjacent Provinces of North-West Persia (including the Caspian Littoral)' [‎14v] (33/610)

16
Eeign of
Muzaffar-ud-
Shah.
interdict by Haji Mirza Hasan ShirazI, a Mujtahid residing at
. Samarra in Mesopotamia, against smoking was obeyed through
out Persia and all smoking ceased, until the Shah was com
pelled to cancel the obnoxious concession. These events were
very damaging to British prestige in Persia.
3. The Foundation of a National Debt in 1892 by a loan of
£500,000 from the Imperial Bank of Persia, at 6 per cent, interest
on the security of the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. Customs, to pay to the Im
perial Tobacco Corporation of Persia as compensation for the
cancellation of their monopoly. The Tobacco Regie episode
eventually caused the death of Nasir-ud-DIn as he was assassi
nated in 1896 in revenge by a man who had suffered im
prisonment in connection with the disturbances.
itj j B He was succeeded by his son Muzaffar-ud-Din, a well
meaning invalid, lacking in initiative and vigour, and the first
of the Kajar sovereigns who was conspicuously unfitted to direct
the autocratic government. Like his grandfather, Muhammad
Shah, he permitted the administration to pass into the hands
of his Grand Vizir the Amln-us-Sultan, 1 AH Asghar Khan,
who had been the servant of Nasir-ud-Din, but became very
much his own master under Muzaffar-ud-Din and he was
surrounded by a cortege of greedy Turld courtiers who accom
panied him from Tabriz on his accession to the throne, and
indulged their extravagant tastes at the expense of the State.
The extravagance of the Court produced an annual deficit and
the baneful innovations, which had made their appearance
during his father’s reign, were rapidly accentuated and threat
ened Persia with bankruptcy, ignominy, and loss of her
independence, while the Shah’s weakness permitted the ex
pression of universal discontent. The National Debt was
inflated by a loan of £2,250,000 borrowed from Russia in 1900
at 5 per cent, interest repayable in 75 years and guaranteed by
all the Customs of Persia except those of “ Pars 2 and the Persian
Gulf.” It was stipulated that out of it the 1892 loan of £500,000
must be repaid to the Imperial Bank, and that Persia must
contract no loan from any other foreign power for 10 years.
1 He was out of favour in 1896 and retired to Qum when his rival Amln-ud-
I)auleh became Grand Vizir. He failed however, to raise funds and Amin-us-
Sultan returned to power in 1898 and remained in office until 1903, when he was
dismissed and superseded by Ain-ud-Dauleh (see below). He was assassinated
on his return from Europe to Persia in 1907. His rival Amin-ud-Dauleh was
more honest and patriotic, but a weaker and less astute politician, and after 1898
did not again hold office.
2 This phrase subsequently became the subject of much discussion between
the British Legation and the Persian Government, the former maintaining that
it must be interpreted to mean all the Customs of Southern Persia. The British
interpretation was eventually conceded as the condition of a loan for £100,000
from the Imperial Bank in 1904.