Papers of the War Cabinet's Eastern Committee [‎109r] (217/544)

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APPENDIX (A).
prom li ar Office to G.O.C.-in-C., Mesopotamia; C.-in-C., India.
(66168 cipher. D.M.O.)
September 12, 1918.
IT is a matter of great importance curtailment should be effected in expenditure
of Persian currency in connection with forces and organisations under your command
or control.
It is impossible for Imperial Bank to continue to finance Dunsterville n his
expenditure continues at present rates. The maximum monthly sum in Persian
currency which can be made available for all military purposes in North-West Persia
does not probably exceed 15,000.000 krans, that is about a quarter of the present
demands.
To following questions require a specific answer: (1) Is Dunsterville financing
local authorities or forces at Baku? (2) On what major heads is Dunsterville
incurring expenditure, e.g., supplies, road-work, levies, intelligence; and what are
his demands under each head? (3) What do you think of relative value of expendi
ture on levies and results obtained? (4) With reference to (2), what curtailment do
you consider can be made? It is necessary for the Treasury to make a clear monthly
budget, as there is a definite physical limitation to the funds wdiich can be provided
by the Imperial Bank. In future, therefore, monthly estimates of total expenditure
must be submitted to us for approval in advance, and actual expenditure must be
strictly limited to the maximum so approved by us from time to time. Dunsterville
has shown a grave misapprehension as to the facts of the financial position in Persia,
in incurring expenditure on the enormous scale now reported without notice either
to us or to the Imperial Bank representatives in Persia. Can you impress on those
concerned the seriousness of their financial responsibilities? Addressed Baghdad,
repeated India.
APPENDIX (B).
Cypher telegram to Sir C. Marling (Teheran).
(No. 487. Urgent). Foreign Office, September 13, 1918. 12.50 p.m.
YOUR telegrams Nos. 779 and 784 (of the 5th and 6th September. Dunster-
ville’s requirements).
Dunsterville’s and other military demands appear to be on an impossible scale.
Please ascertain from chief manager of Imperial Bank of Persia and report by
telegraph immediately:—
(a.) Present cash reserves of Bank.
(5.) Amount the Bank anticipate they can find for all Government purposes
during September and October respectively, assuming that rupees Indian silver coin also widely used in the Persian Gulf. are
allotted to them up to their full requirements.
(c.) Requirements during September and October for all purposes (other than
Dunsterville’s), including expenditure of Indian politicals and expendi
ture in East and South Persia, specifying items separately.
(d.) Amount of rupees Indian silver coin also widely used in the Persian Gulf. Bank think that they could sell if Government of India
agree to furnish them.
G.O.C., Mesopotamia, is also being instructed to inform Dunsterville that rigid
economy is imperative.
You will understand that such political expenditure as you have already been
authorised to incur should take priority.
Your telegram 784. Second paragraph.
No silver can be supplied.