Coll 28/110 ‘Persia. Economic & Financial Assistance by H.M.G.’ [‎24v] (48/79)

(4)
defeated and more small vessels are set free than can he
employed in the Far East; \ :
(iii) help the Air Force to reconstruct itself on British
model, . j.'
7. All the above are ways in which it is suggested
Persia could receive assistance which Yfould justify our propaganda,
remove to same extent the odium created by Allied occupation and its
economic consequences and lay the. foundations of lasting British
prestige and influence in this country, Persians will, however,
judge the advantages of association v/ith Great Britain chiefly from
what is offered for the post-war period. Hence British propaganda,
if it is to convince -the Persians on this point, must even at.
present be based to some extent on the advantages.Great Britain.is
prepared to offer them commercially when the war is over. . It is
difficult at this stage to recommend the exact lines on which
Great Britain’s post-war trade policy towards Persia should run,
as it will clearly depend on the political status of the country
after the war and on Britain’s policy in general towards her major
allies. The question will, however, be ”how and by whom will
Persia’s economic wnntis be satisfied”? Assuming that.Great ••
ritain wished to be one. of the chief a.gencies in fulfilling this,
the action she must take would be a continuation and widening of
that suggested in the .preceding paragraph,. Details of Persian
import requirements'and development possibilities were sent m
September 1942 by the Commercial Secretary to. His Majesty s .
Legation to the Department of Overseas Trade, for the information
of the Post-Tfrr Export Trade Committee presided over by Mr. Harcourt
Johnston, P.C.yM.P. The Information in this report will be.,
brought up to date and a further report furnished as soon as
possible as a first step in the campaign to prepare for the
resumption of British trade in Persia. .. .
8, The previous paragraphs are concerned with what
Treat Britain might contribute to Persia. It.will, however, also
->e necessary, if a strong position is to be built up in Persia, to
•ake from her a share of her products bearing, some relation to tne
mins of those she buys from Great Britain; or at least to ensure
that she is able to dispose of her own exportable surpluses in
Dther markets under some system of international clearing k such, as
the Keynes Plan) that will prevent her becoming tied to a part c -
lar country in the way she was to Germany before the war. It is,
however, useful to beer in oind that Geruany's considerable popular
ity in Persia was due tc the fact that trade between the two
countries was a acre cr less nutually satisfactory exchange of
B^sB Only scac -systea that satisfies the above condition will
rive lasting satisfaction to both parties and provide a secure
Kosis fr r building up British influence in Persia. .•
: [Copies sent to Mr. Arustrong.]