Coll 28/97(1) ‘Persia. Diaries. Tehran Intelligence Summaries.’ [‎254v] (508/807)

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(4) British Interests.
The controversy between the Iranian Government and the Anglo-Iranian OT
Company has been settled by an agreement reached on the 21 st August. By it
the company has agreed that in order to mitigate the effects of circumstances
outside the company’s control as a result of which the revenues from oil
fallen, it will pay to the Imperial Government on the 31st August, 1940,
£1,500,000 sterling, and will make up the sums due on account of royalty tonnage,
dividend participation, taxation and gold premium, to £4 million sterling m
total in respect of each of the years 1940 and 1941. With regard to the period
after 1941 it is agreed that the differences between the parties in respect of the
Imperial Government’s claims will be examined at that time with a view to
reaching an arrangement acceptable to both parties.
The immediate object of His Majesty’s Government in dealing with this
question was to gain time. This has been achieved by a gift of money and
without sacrificing any part of the company’s concession. In view of this and of
the fact that differences in regard to foreign exchange, which it is important to
resolve by direct negotiations between the two Governments, are not mentioned in
the agreement, the latter 1 may be regarded as satisfactory. Nevertheless, by the
unscrupulous, and even offensive, manner in which the Shah has pressed his
claims, he has entirely alienated the sympathy of His Majesty's Legation and
of the company's local representative. It is also satisfactory that no new
commitments have been assumed in regard to any time subsequent to the end of
1941. What happens after 1941 will depend mainly on the strength of the British
Empire in the Middle East at that time.
( 5 ) French Interests.
(i) The French Military Attache is in close touch both with Beyrouth and
France by means of a receiving set installed in his private residence. He employs
a French wireless operator. He openly declares that the only news which he
accepts and is prepared to listen to is that emanating officially from the Vichy
Government.
(ii) The French Military Attache has recently received a sum in dollars
for expenditure on Second Bureau work. He is again reorganising his agents, &c.,
with little regard to cost.
(iii) Since the signing of the armistice members of the French Legation,
including the French Military Attache, remain friendly and have endeavoured to
show outwardly that this has not affected their relations with the British. At
the same time they definitely take their orders from the Vichy Government, and
in some cases have expressed criticism of British action ringed with hostility and
bitterness. Recently several booklets, viz., La Verite sur VArmistice, La Verite
sur I’Oran, &c., were passed to members of the French colony, which apparently
caused the French Legation displeasure. To counter its effect the French
Legation distributed a typewritten sheet containing an article on “ Measures
militaires ” culled from the Journal de Geneve, dated the 12th July.
Three members of the French Mission have recently received intimation from
Vichy that they have been advanced in grade.
( 6 ) Italian Interests.
His Excellency the Italian Minister, dissatisfied with his sources of
intelligence, has recently organised a special intelligence service for the Italian
Legation. Amongst those employed as agents are Cabella, a tennis professional,
and Ciampi, a chauffeur. Their special duty is to watch and report on the
activities of both the French and British Legations. Both of these men have been
domiciled in Iran for a long time and are well-known characters.
(7) German Interests.
(i) Herr Dittman, counsellor of the German Legation and a devout Roman
Catholic, is said to be much exasperated by the sneering anti-religious views
expressed by the German Minister (Herr Ettel), but dare not protest openly.
(ii) German engineers of the Telefunken Company, who some months ago
installed the radio apparatus of the Tehran Broadcasting Station, have