File 357/1919 Pt 2 ‘RAILWAYS IN PERSIA’ [‎38v] (81/1150)

2
proceeding. I reminded him that at present the cost of per kilometre in the south
was less than half what it was in the north and said, that I understood that the
American group could complete the work for a comparatively sma 1 outlay, and that
even then the total cost per kilometre would be only about 50 60 pei cent of what it
was in the north. His Highness replied that this might be so, but the Persian
Government preferred to bear the additional expenditure and do the work themselves.
6. The following day I learnt that the offices of the syndicate m Ahwaz hi been
forcibly seized by the military, including all the documents and cash that were found
there. I requested Mr. Monypenny to report what had happened and I enclose copy of
a telegram which I have received from him.
7. My German colleague tells me that the police, acting on instructions
apparently from the Persian control officer, attempted to act in a similar way in the
north, and when the Germans threatened to resist summoned help from the military.
Count Schulenburg professes to believe that the action in the north was due to a
misinterpretation of the telegraphic instructions received by the control officer. In the
end nothing was actually seized but the offices were sealed up and guards stationed in
front of them.
8. Yesterday T called on my American colleague and asked him what action, if
any, he proposed to take. Mr. Hart said that he proposed, together with Count
Schulenburg, to seek an interview with the Minister for Foreign Affairs and enquire
whether the action of the military had the approval of the Persian Government. He
went on to say that he had little doubt that the Government had ordered the military
to act as they did in the hope of securing certain documents authorising various work
to be done which they had since repudiated. As a matter of fact, he added, all
important documents are either in the American Legation or consulate at Tehran or in
the British consulate at Ahwaz. I said that Air. Shepperd had told me that he had left
certain documents at His Majesty’s consulate and I wanted to suggest that, in order to
regularise the position, he (Mr. Hart) should write me a letter asking for the good
offices of His Majesty’s consul at Ahwaz in view of the fact that the United States
Government had no consular representative in the Province of Khuzistan. Air. Hart
said that he would gladly do this.
. 9. I then told him of my conversation with Teymourtache and he entirely agreed
with me that his Highness was suffering from what can only be described as an anti-
me I 1 5' an ^niplex. In the circumstances he felt that the sooner the Ulen Compauy
cou d be quit of Persia the better. He had thought so since he had first studied the
railway position. He was now convinced of it.
10. I warned Air. Hart that the Persian Government might even go so far as to
refuse exit visas to the American members of the syndicate until a settlement had
een reac e or possibly, make difficulties about the contents, of their baggage. He
an e me for this warning and said he would telegraph to Washington on the whole
position that afternoon.
q I should add that Mr. Hart was very suspicious of the connexion of the
had tv^n SSy I - ese P r . o y e diags- The Soviet Charge d'Affaires had recently
Cxerir n mi,T gl flf" 8 W ! th le ymourtache; he was in close relations with the
as-ainst the Pel 8 ° iV y nt h c ate; the Soviet Government had an unpaid account
wanted the riilwP 1 ! ° r . 1R . e< l ul y' ent °f some £50,000 sterling for freight; they
Sble the wfef t TP 1,ed tllem r b y tter that the Germans should btdld i.4
12. The rmnurr,] 1 ■' . lls . as P ect °f l ' 1( - question needs to he carefully watched.
Minister of Court Imt e q*? n h*;™ 18 that the Shah, encouraged no doubt by the
been ovefwrou A; and F ff lmSelf em f ely “ the « Teymourtache had not
pleTuLT7oain l ; 1 fl . ni,S T raer f - V from ill-health but also from an exaggerated
course of action. I would not^oIYfa^' llav ® reconmiended such an insensate
cause for complaint or that all nL fa i t0 , Say that ttle syndicate have given no
accordance with their contract or on Hip be6n :) ' 1 ustifiedj either str ictly in
the Persian Government h i 6 gl0unds expense, but to act towards them
dudicethe businpr“„Pl!.I OUe . can . on ly. when the facts become public.
prejudice the business world u e. can only, when the facts become public,
well, have been settled by ne t ot ^l i erS1 ? T and create difficulti es which could perfectly
consider it wholly impossiblo tW th -p . °^ ver > ev en at this late hour I do not
as to make some sort of settlement wltEhPsL^caTr 16111 Climb d ° Wn ’ P ° ^
the Government of Indfa^^’ en(dosiires ’ ^ as been sent to the Foreign Secretary to
I have, &c.
R. H. CLIVE.

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File 357/1919 Pt 2 ‘RAILWAYS IN PERSIA’ [‎38v] (81/1150)

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