Coll 28/110 ‘Persia. Economic & Financial Assistance by H.M.G.’ [‎7r] (13/79)

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OUTWARD TELEGRAM JNOEXLI
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E. 793/260/54.
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ITAL No, 2,
* "FROM FOREIGN -OFFICE TO TEHRAN . . ; _ — , ^
V?, 4, SAVING, ' -' February 11th, 1944,*
JL4FEB 1944 Ijjn
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Repeated to Cairo (Resident Minister) No, 16.
Government of India. /7/I/1 SAVING,
Bagdad 7. / .
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Your .telegram Noi 145 SAVING,of the 5th October [propaganda
policy in Persia in relation tosconomic assistance] has been
carefully considered with the departments concerned, who are in
general sympathy with your views and have made every effort to
meet your recommendations.
2. To take first the specific recommendations in your \
paragraph 6:-" v ‘ . *'
>
(a) Increased Import Quotas .
You will appreciate that the requirements of Middle Eastern
countries must for some time to come continue to .be treated as
a whole. It is for M.E.S.C. to judge the relative needs of
the various territories, and we cannot contemplate special
shipments to one or x>)ther of the territories, which have not been
correlated with M.E.S.C. s general import programme. It is
h^ped in the near future to arrange a general increase in imports
to the Middle Eastern area as a whole, from which Persia may expect to
benefit in proportion to her needs, nut there can in present
circumstances be no question of granting Persia preferential
treatment* : .
It must be borne in mind that it is exceedingly difficult
to justify increased allotment of civil goods to Persia so long
as the Persian Government remain inactive in purchasing goods
already allotted under existing quotas (e.g, tea and cotton piece,
goods from India) and in clearing from ports and distributing
goods already in the country (your telegram No. 15 paragraphs 2 and
7). "Until the Persians show that they can digest what they are. ;
already getting they clearly cannot expect to be given more.
(b) Machinery and Di e s els.
: i Some types of machinery, and’Diesels in particular, are in
very short supply and there is no prospect of the position easing#
But some 500 tons of Diesel machinery tapproximately 140 slow
speed Diesel engines) have been programmed for Persia and it should
be possible to supply the bulk of these by December 1944.
Diesel
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spares .
r • Spare parts for Diesel Engines are in equally short supply,
but every effort is being made to keep existing engines running.-
Where these Diesel engines are of German manufacture the position
is further aggravated by the lack of stocks of spares in the United
Kingdom. Enquiries are still being pursued on the extent to which
:suipable parts can be obtained or manufactured in the United Kingdom
and every effort will be made to meet the requirements. You will,
of course, appreciate that it may not be possible to manufacture
special^types:of spares while United Kingdom productive capacity is
fully geared to our om war effort, ^ %
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