Papers of the War Cabinet's Eastern Committee [‎182r] (363/544)

3
* K.C. 2652.
E.C.—1253). The Government of India had been instructed that
for any purposes beyond those mentioned above, currency could
only be found by dislocating our commitments in Persia, and they
had been asked (a) if it was worth while financially to bolster up
this Government; and (b) if so, what was the amount required? To
those specific questions they had made no reply. In his telegram
of the 30th November (E.C.—2585), General Malleson made two
proposals on which the Government of India asked for orders
urgently. One was that we should guarantee a loan by placing a
sum in sterling to the credit of the Government in London, say on
the 1st January, 1920. This, General Malleson thought (on the
advice of Nobel’s agent), would draw out the rouble notes which are
being hoarded for a rise. The second proposal was one which had
been previously made, viz., to collect the rouble notes against a
( , promise to pay in silver rupees Indian silver coin also widely used in the Persian Gulf. three months later. General
Malleson did not state the amount which it is proposed to raise, nor
whether it is for the purpose already approved by His Majesty’s
Government, or for the further purpose not yet approved. On the
t t 17th November (E.C.-2426), he said that the commitments of the
Askabad Government were 88 million roubles, and that they wanted
• to raise that sum before the end of December, and to receive a
monthly subsidy of 16 million roubles from us. Five lakhs One lakh is equal to one hundred thousand rupees of
rupees Indian silver coin also widely used in the Persian Gulf. were now on their way from Quetta, and these General
Malleson had been -authorised to hypothecate. Baku had also sent
2 million roubles in notes. The view of the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. , based on
the latest information received, was that it was worth while to
continue to offer financial support in order to prevent the Trans-
Caspian Government from going to pieces. It seemed possible that
' if we could keep that Government going for another month or so
the Bolshevist element in those regions might collapse. The view
of his Department was that it was for the Committee to lay down a
policy and for the Treasury to find the money.
Mr. Keynes said that, as directed by the Committee at their
meeting of the 21st November, 1918, the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. had wired
asking for information (a) how much money was involved, and (b) was
it worth while to continue to support a very shaky and dubious
Government ? To these questions no reply had been received
beyond certain not very helpful suggestions as to how we should
raise the money. General Malleson s new proposal was that as no
roubles were obtainable for cash we should try and get them on the
■ § 0 basis of deferred payment, which w r as not a proposition which offered
much chance of success. It would be possible for us to pay to
General Malleson a lump sum of the equivalent to 100,000Z. sterling
in krans at Meshed, but this might simply mean throwing money
* away. General Malleson himself said that he required not less than
1 million sterling before the end of the present month.
The Chairman thought that we might (a) offer the sum of
100,000Z. sterling as a stop-gap arrangement, and (6) repeat our
former questions and ask for definite replies. The Committee were
faced with the following alternatives, either (i) to discontinue all
financial support, which he did not think possible in the circumstances,
or (ii) adopt the policy of the suggested loan.
General Smuts thought that, for the present at any rate, we
should continue to keep the Askabad Government going in view of
the alleged possibility of the Bolsheviks collapsing.
The Committee decided^—
(a.) That the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. should inform the Government of
India that His Majesty's Government were pi’cpared to
provide at once, for General Malleson's immediate
necessities, the equivalent of 100,O00Z. sterling, to be
paid in krans at Meshed.