خارجي ٤١/٥٠٠٠(٢) "بلاد فارس: الوضع قبيل احتلال الحلفاء، وما بعده" [و‎‎٢‎٣‎٧] (٦٠٦/٤٧٣)

Draft Paper
external Department
DRAFT
TELEGRAM.
Prom Secretary of State
to Government of India,
External Affairs Dept.
Repeated to Tehran, Moscow,
Minister of State, Cairo.
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IMPORTANT .
Your telegram No.3690 dated 20th July. Policy
in Iran.
2. H.M.G. have now given full consideration to your
suggestions for the application of economic sanctions
and the possibilities mentioned in Tehran telegram
No.442 of 19th July. In their opinion the application
of such sanctions are not likely to produce any early
effect on the Iranian Government or to induce them to
expel the German colony. On the contrary it would be
a long time before they produced any effect at all and
as the Government of India have emphasised, time is of
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importance. Were such sanctions directed against the
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populace it is dotibtful if / they would have the effect
of driving them in the direction anticipated by the
Government of India or of benefitting British interests
in any way, while they would give an opening for
German propaganda of which the Germans would take the
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fullest advantage^ If they were directed against the
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Shah’s interest:the probable result would be/to
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convince the Shah of our inability to export goods and
to exasperate him into taking action against the oilfield*
Apart from that iti would mean the breaking of
contracts for cement and sugar to which the U.K.C.C. are
committed and we should in return lose the wool for
which payment has already been made.