'SUMMARY OF THE PRINCIPAL EVENTS AND MEASURES OF THE VICEROYALTY OF HIS EXCELLENCY LORD CURZON OF KEDLESTON, VICEROY AND GOVERNOR-GENERAL OF INDIA IN THE FOREIGN DEPARTMENT. I. JANUARY 1899-APRIL 1904. II. DECEMBER 1904-NOVEMBER 1905. VOLUME IV. PERSIA AND THE PERSIAN GULF.' [‎63v] (131/386)

and intimated lus readiness to conclude the loan on the sole condition of the
grant of the Tabriz Road Concession, with certain mining rights on the road
which were a set off against the refusal of the pipe-line, 'ihe Russian Govern
ment had, however, in the meantime negociated a new tariff convention with
Persia on terms most favourable to their own interests. It was subsequently
alleged that a verbal promise was at the same time given by the Shall through
the Atabeg-i-Azam that tlie services of Russian signallers should be employed on
the Meshed-Seistan telegraph line by the Persian Ministry of Telegraphs, who
should construct and work the line out of the proceeds of the new million to
be lent by Russia, and that its Seistan end should not be connected with the
Central Persian or Indian Telegraphic systems. The Russian Government had
already at au earlier stage in the negotiations waived its claim to place Russian
officials in the customs, so long as tne interest on the loan uas regularly paid,
in return for a promise from the Persian Government to dismiss Mr. Maclean,
the English chief of the Persian Mint, and to employ no other English officials
in its service.
19. What, exactly, was the ciu^e of the change in their attitude in March
1902 it is difficult to say, but the simplest explanation is that the Russian
Government found it impossible to continue to defend their prohibition of
British assistance to Persia, while refusing it themselves, and, in view of the
explanations demanded by the British Ambassador at St Petersburg, came to
the conclusion that the simplest course was to terminate the incident by grant
ing the loan.
20. Throughout the proceedings His Majesty’s Government bad maintained
the frankest attitude towards Russia and bad made every endeavour to arrange
for a direct settlement between the two Great Powers. In October 1901 the
Hon’ble Mr. C. Hardinge, His Majesty’s Charge d’Affaires at St Petersburg, was
authorised to speak to Count Lamsdoril frankly on the subject of the loan, point
ing out the inconveniences of independent discussion by the two Pov\ ers with
Persia. He was to recall the Anglo-Russian understanding which bound botli
Powers to maintain the independence as well as the integrity of Persia, arrived
at in 1834, and re-affirmed in 1888, when M. de Giers expressed the view that
there should be no antagonism between British and Russian commercial
interests in Persia, and he was to point out that such independence would not
be compatible with any arrangement under which Persia would pass under the
financial tutelage of either Power. We recognised Russia’s preponderating in
terests in the North, but could not allow our own in the South, especiallv in
the Southern Ports and Seistan, to be ignored. The Hon’ble Mr. C. Hardinge
was directed to speak accordingly and to express our readiness to discuss, in the
most friendly spirit, the possibility of arrangements for a simultaneous advance
by both Powers, each accepting as its security the Persian revenues falling
within the indicated spheres. These views w r ere duly communicated to Count
Lamsdorff, who adhered to a previous statement, made by him to tne Hon’ble Mr.
C. Hardinge, that he knew nothing of any negotiations fora new Persian loin, but
promised to make inquiries from M. de VVitte, as the result of which he informed
the Hon’hle Mr. C. Hardinge, a few days later, that the loan had been already
concluded and that a portion of the money had been paid. He said, at the same
time, that he was most anxious to maintain the independence and integrity of
Persia and denied that such a thing as financial tutelage existed in that country.
On 6th November 1901, the Hon’ble Mr. C. Hardinge saw M. de Witte himself,
who sa?d that beyond the fact that negotiations were being carried onby theRussian
Bank in Jehran and that a million roubles had been advanced, he knew nothing
further of the Persian loan. M. de Witte further said that he knew nothing of
the proposal for joint action made by Lord Lansdowme to Count Lamsdorff, and
when it was explained to him, declined to discuss the political question as being
outside his sphere, and dismissed the suggestion of a simultaneous loan by
England and Russia as being vague and impractical. He asked why, if we
wanted to advance money to the Persian Government, our Bank did riot do so.
He stated that he would raise no objections.
2E The general result therefore of the Hon’ble Mr. C. Hardinge’s discussions
was to indicate that the Russian Government shared our desire for a complete and