'Military report on Tehran and adjacent Provinces of North-West Persia (including the Caspian Littoral)' [‎15v] (35/610)

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people, and ex-communicated by tbe religious leaders in Najaf
for borrowing 1 money to provide for the Shah’s extravagances,
and being blamed by the Shah for not providing sufficients
He was succeeded by ’Ain-ud-Dauleh who adopted the specious-
programme of financial reform in lieu of foreign loans. In
1904, however, he borrowed a further loan of £100,000 from
the Imperial 2 Bank, and in 1905 the Shah made his third
journey to Europe and an advance of £100,000 was obtained
from Russia.
The only measure of financial reform instituted during
Muzaffar-ud-Din’s reign was in connection with the Customs.
In his desire for money in 1898 he had made the experiment
of placing the Customs houses of Kirmanshah and Tabriz
under Belgian officials. Encouraged by the results, and to
afford a security for foreign loans, in 1902 he obtained the
services of Belgian officials for.the administration of all the
Customs of Persia. M. Naus, who was appointed Director,
acquired great influence, secretly negotiated a Customs treaty
with Russia, which came into force in 1903 and w r as designed
to promote Russian and be detrimental to British trade, and
in 1905, he was also appointed Minister of Posts and Tele
graphs.
The administration of ’Ain-ud-Dauleh proved even worse
than that of his predecessor and the state of affairs is described
in a report by Sir W. Townley, the British Minister in Tehran,
as follows :—
“ The condition of Persia had been for some time growing more and more
intolerable. The Shah was entirely in the hands of a corrupt ring of courtiers
who were living on the spoils of the Government and country. He had parted
with the treasures inherited from his father, and with most of the Imperial and
national domain. He had thus been obliged to have recourse to foreign loans
the proceeds of which he had. spent in foreign travel or had lavished on his
courtiers. There was a yearly deficit, and the debt of the country was growing,
daily.
Anew 3 * Grand Vizir had been appointed, whose moving principle was believ
ed to be independence of foreign control. His first act was-to attempt some sort
of financial reform, the object of which was to render the country independent
of foreign financial assistance. But as soon as he had obtained control of the
Government, it was apparent that his main and principal object was to make
money. He made an alliance with the Shah’s chief adviser for a division of the
spoil. Governments were put up for sale, grain w 7 as hoarded and sold at extor
tionate prices, the Government domains were stolen or sold for the benefit of
the two conspirators, rich men were summoned to Tehran and forced to dis
gorge large sums of money, oppression of every sort was countenanced for a
consideration; the property and even the lives of all Persian subjects were at
their mercy. Finally, there was every reason to believe that a conspiracy was
on foot to dethrone the foolish and impotent Shah and to oust, the VaJiahd.
1 The unpopularity of the loans caused the destruction of the Russian bank
in Tehran by a mob in 1905.
2 The Russians offered £400,000 on condition that they should be entrusted
with the reorganization of the Persian army.
* ’Ain-ud-Dauleh.