خارجي ٤١/٥٠٠١ "بلاد فارس - الشؤون الداخلية (إرساليات متنوعة)". [ظ‎‎٦‎٠] (٢٤٨/١٢٠)

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beginning of the year negotiations were speeded up, and a draft agreement was
prepared by us in consultation with the American authorities, and submitted to
the Russians for their approval. The draft as finally agreed between the
Russians, the Americans and ourselves will then form a basis for subsequent
negotiation with the Persian Government.
57. I he new silver coinage which the Majlis had authorised to be minted
was put into circulation for the first time on the 29th February. The denomina
tions of the coins are 1 rial, 2 rials, 5 rials and 10 rials, and are legal tender to 0Ty
extent ol 500 rials. So far, only the 1- and 5-rial pieces have appeared. The coins
are ol 600 fineness, composed of an alloy of silver and copper, and their total value
will be 100 million rials. Although silver is being sold in the open market in the
Tehran bazaar at 760 rials per 1,000 grammes (916 fine), and the value of the
new 1-rial piece at that price is therefore -795 rials, there was an immediate run
on the banks for these coins, and later the 5-rial pieces were being sold on the
street for 6 or 7 rials each. These are presumably being hoarded.
58. The silver deal with the Government of India, under which the National
Bank of Iran sold to them 500 tons of cut rupees, rial and kran coins, has now
been completed, the final shipment being made on the 19th March. The bank sold
120 tons at 80 rupees per 100 tolas (916) fine) and 380 tons at 93 rupees 12 annas
per 100 tolas (916 fine). The former price was approximately that at which the
Persian Government had previously bought 120 tons of silver from India, while
the latter is the price ruling on the open market in Persia.
Economic Situation.
59. In spite of the good harvest last year and the provision of nearly a
thousand lend-lease trucks, the country was faced at the beginning of 1944 with
another bread and transport crisis. This was happily averted by the combined
efforts of the Millspaugh Mission, Paiforce and the Middle East Supply Centre.
Dr. Millspaugh recognised the need to concentrate on cereals collection and the
organisation of transport; and the Persian Government were fortunately able
to have the help of these Allied organisations. The Middle East Supply Centre
provided fifteen British officers and n.c.os. to help in supervising the collection
and movement of grain and another twenty-five to assist with the control of civil
road transport. Paiforce provided transport companies, which moved 17,000 tons
of cereals from the Kermanshah-Hamadan area to the railway. Thanks to this
measure, bread supplies for the population of Tehran and other centres were
assured. The transport of civil goods by rail from the south to Tehran also
improved following the appointment of a British officer to the Millspaugh
Mission to supervise loadings.
60. The distribution of tea, sugar, piece-goods, drugs and other essential
goods was another story. This was a failure, in spite of the Government’s large
stocks of these commodities and of considerable efforts made by Dr. Millspaugh
and his mission. Most of the civil population did without these “necessities”
and bazaar prices remained at very high levels. Unfortunately, some of the
measures aimed at reducing prices which were passed by Dr. Millspaugh have
tended to aggravate the situation by holding up distribution by merchants. Some
of the harmful measures were later rescinded; but the monopolisation of the
commodities mentioned above is still a hindrance rather than a help to
distribution.
61. The Persian Government agreed in January to supply the Russians
with 36,000 tons of low-grade rice at considerably below cost price in exchange
for Russian goods to the value of about £320,000. Like the arms contract now in
force between the Persians and the Russians, this agreement is financially
disadvantageous to the Persians. A new Rice Monopoly Company was set up to
collect and deliver rice to the Russians (and also to the civil population of Persia),
but its success up to date has not been remarkable.
T rans'port.
62. Mr. Floyd F. Shields arrived from the United States during the quarter
and assumed the direction of the Road Transport Administration. He has three
American assistants and the twenty-five British officers and n.c.os. provided by
the Middle East Supply Centre to work temporarily with the Persian Government
to help organise civil road transport on a proper basis. The Government