Papers of the War Cabinet's Eastern Committee [‎26r] (51/544)

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Sir Charles Marling had replied that the military advantages
of the alliance would be small but not negligible, while he submitted
that the acquisition of an independent Moslem ally would have a
far-reaching effect in Asia. We had since received a telegram from
the Indian Government (E.C.-390) dated the 24th May, stating the
pros and cons of such an alliance and appearing on the whole to
advise against it.
It was decided —
That it was not necessary to issue further instructions at this
stage.
Shah’s Subsidy. 6.—(2.) Lord Hardinge referred to a telegram from Sir Charles
Marling, dated the 26th May (E.C.-39G) stating that the Shah was
pressing for more money, and threatening not to appoint \ossugh-
ed-Dowleh Prime Minister, unless his demands were met. The Shah
was asking for 20,000 tomans 10,000 Persian dinars, or a gold coin of that value. a month during Yossugh’s tenure ol
office, and a pension in case of exile. Sir Charles Marling said that
he had given the Shah to understand that we would not submit to
blackmail. He thought, however, that the Shah would be prepared
to accept 1 5,000 tomans 10,000 Persian dinars, or a gold coin of that value. a month, and he asked for authority to grant
this in case of absolute necessity.
It was decided —
That Sir Charles Mailing should he authorised, in case of
necessity, to grant the 15,000 tomans 10,000 Persian dinars, or a gold coin of that value. a month.
I inanoing of
Baratof and
llicharakof.
7. The Committee had before them various papers dealing with
the dilferent financial obligations of His Majesty’s Government in
Persia, notably a memorandum by the War Office (E.C.-397)
entitled “ Financial Questions concerning Russian troops in
Persia,” which stated that decisions were required on the following
points :—
(a.) Are the outstanding requisitions amounting to 8^ million
krans, in connection with the evacuation of Baratof s
troops, to be settled or not ?
(6.) Is Baratof to be credited with approximately 1|- million
krans for motor transport, &c., taken over from him, and
to be allowed to use the credit to meet certain requisitions
issued by him, but not included in (a) above ?
(c.) Is General Dunsterville to be authorised to continue to
maintain BicharakoFs troops at a monthly cost of about
4 million krans ?
Mr. Keynes had prepared a brief statement, which he circulated
to the Committee, on our liabilities in Persia (E.C.-412). These
liabilities (excluding the cost of British forces in Persia., which was
bound to increase) had not hitherto exceeded 17 million krans a
month, or 600,000/. The expenditure to-day was 14 million krans a
month, which could be continued without a financial crisis; but
directly we went beyond 17 million krans we approached the danger-
point, unless we reopened the trade routes. The amount now asked
for was 19 million krans.
The Chairman pointed out that 19 millions was not a recurrent
liability, as it included a lump sum to clear Baratof’s claims.
Mr. Keynes added that in estimating the proposed expenditure
at 19 million krans, he had spread Baratot’s claims over three
months.
General Macdonogh said that the opinion of men on the spot
had been consulted about Baratof’s claims, and their opinion was to
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