'Military report on Tehran and adjacent Provinces of North-West Persia (including the Caspian Littoral)' [‎131r] (266/610)

227
The above are secured on all the Customs revenues excepting
those of Fars and the Gulf Ports.
Since the Russian revolution these debts have been in
abeyance and the Persian Government have received from the
Soviet Government an expression of views indicating that they
consider these debts cancelled.
In addition to these debts to Great Britain and Russia con
tracted by the Persian Government, there are claims of private
firms and individuals for damage and losses sustained which at
the present time certainly amount to £1,500,000.
To summarise the position briefly, the Persian Government
to free itself of its present indebtedness including past due
interest would have to raise a sum of about £14,500,000.
Prior to 1900 Persia had no foreign debt. From 1900 to
1914 she contracted a foreign debt of about £6,800,000, roughly
£500,000 per annum.
From 1915 to 1917, taking into account military expenses
paid, the help afforded exceeded £500,000 per annum. From
1918 to 1920 the debt increased at the rate of about £2,000,000,
per annum in advances from the British Government.
No part of this sum has been expended on reproductive
work. There is therefore a serious recurring and constantly
increasing annual deficit to be made good, and unless reorgan
ized and made self-supporting the current administration
cannot be carried on without foreign financial assistance.
.The advances from Great Britain have ceased and the loan
of £2,000,000 specified in the Anglo-Persian agreement has
lapsed with the agreement.
No other foreign power is likely to advance money to Persia
with inadequate security and a certainty that it would be ex
pended as prodigally as the sums advanced in the past by
Great Britain and Russia. The Persians have proved their
incapacity to reform the administration without foreign ad
visers and Persia is threatened with bankruptcy and chaos.
No statistics of the total yearly revenue and expenditure
are available, but it is estimated that under careful and efficient
administration Persia could soon expect a yearly revenue of
1 The expenditure has been increasing and receipts decreasing.