"القرض الفارسي. برقيات، ٢٠ يناير - ١ أبريل." [و‎‎١‎٥‎٤] (٢٢/٩)

From Secretary of State to Viceroy, 13M March 1903.
Conference similar to that described in my telegram of Uh havina
considered your telegram of 1th on Persian loan proposals, held that it was
advisable to send following instructions to Sir A. Rardinge That in
return for money payment he should attempt to obtain from Persian Govern
ment exclusive rights (1) throughout the whole area described in your telegram
of 26th February ; if he cannot obtain this he should try successively for (2)
area indicated in your telegram of 1th March; (3) that indicated in my
telegram of 26th February, by which we should get a valuable security for our
money in Western Persia; and (4) a triangle of territory, including Seistan,
Kerman, and Bunder Abbas, in South-Eastern Persia, so as to render it
impossible for Russia to construct a railway to Bunder Abbas or any port
east of Bunder Abbas. With our practical possession of Mussendem p?'o-
montory, the Admiralty think that this would obviate any serious danger from
any Russian port in the Persian Gulf It teas the opinion of the Conference
that if India, by the payment o/ 1 400,000/. or 500,000/., on conditions stated in
my telegram of 20th February, could obtain this and nothing more, she would
be making a good bargain, as it might save her from largely-increased naval
contribution and military expenditure in the future. Please telegraph your
views. Probably Treasury would be willing in event of default to guarantee
a moiety of any deficit of interest that there might possibly be.
P.— The proposals of your telegram of YSth March respecting Persian
Loan appear to me suitable, except that I hope we may not have to fall
West Provinces, perhaps we might regard these as protected by pledges
referred to in my telegram of 1th, and ask instead that Persian Government
1896 by Sir H. M. Durand. By these means we should be securing our own
interests as well as fortifying the authority of the Persian Government,
thus killing two birds with one stone.
From Sir A. Hardinge to Marquess of Lansdowne,
Ylth March 1903.
(No. 55.) Your telegram of 12th March.
Viceroy has repeated to me Secretary of State for India s telegiam of
13th March and his own reply. Chief difficulty to me seems that proposed
payment is in fact a loan from His Majesty’s Government, bearing interest
till an uncertain date, and that Grand Vizier can only accept loans fiom us
in two ways :—
1. Through Imperial Bank of Persia as nominal lender, which is method
he prefers, because Russians admit that they cannot object to it.
2. Through Indo-European Telegraph Department as a nominal discount
on royalties and receipts due to Persia, but lor which othei icvenues
can be made collateral security.
a siivoof rvivmpnt not bearing interest would, no doubt, prove very
From Viceroy, Y6th March 1903.
back on third alternative. If Persia objects to grant of monopoly in South-
should allow us to raise, upon strict analogy of the Persian Cossacks, corps
of Bakhtiaris and Lur tribesmen under British officers, as was proposed in
we should ask in return might so incense Russia as to
C
S. 19.