741.91/45

The Chargé in Great Britain ( Wright ) to the Secretary of State

No. 3113

Sir: I have the honor to transmit herewith, for the information of the Department, the official report of Questions and Answers in the House of Commons on Tuesday, June 22, 1920, in regard to the Anglo-Persian Agreement.

I have [etc.]

J. Butler Wright
[Page 345]
[Enclosure]

Questions and Answers in the House of Commons, June 22, 1920

Anglo-Persian Agreement

Sir Thomas Bramsdon asked the Under-Secretary of State for Foreign Affairs whether, under the Persian Agreement, the joint commission of military experts has been set up; and whether any munitions and equipment have been supplied to Persia by Great Britain?

Mr. Harmsworth: The answer to the first part of the question is in the affirmative. The Report of the Commission has been drawn up and is now being considered. The question of supplying munitions and equipment for the uniform Persian Force, which it is proposed to organise, is also occupying the earnest attention of His Majesty’s Government.

Mr. Briant asked the Under-Secretary of State for Foreign Affairs whether, under Article 5 of Part 1, of the Anglo-Persian Agreement, any schemes have been prepared for the encouragement of Anglo-Persian enterprise; and whether in such schemes preferential treatment is given to British subjects?

Mr. Harmsworth: Article 5 of the Anglo-Persian Agreement is being carried out, as far as circumstances permit, in close co-operation between the British and Persian Governments. A railway option has been given by the Persian Government to a British firm for a proposed continuation of the present Mesopotamian railhead on the Persian frontier to Tehran via Kermanshah and Hamadan. The Company’s surveyors are at present at work in Persia. The answer to the last part of the question is in the negative.

Captain Wedgwood Benn: In view of that answer, can the hon. Gentleman say if the principle is not to give preference to British subjects?

Mr. Harmsworth: No. I understand it still remains with the Persian Government to decide whether or not they will accept or grant contracts.

Captain Benn: Do not the Persian Government act on the advice of their British adviser, if he suggests to them to accept British in preference to other people’s offers?

Mr. Harmsworth: I do not think so.

Sir J. D. Rees: Is there any harm in British subjects obtaining a preference?

Major Entwistle asked whether any funds or any portion of the loan have been supplied under the Anglo-Persian Agreement; and has any interest been paid?

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Mr. Harmsworth: I would point out to the hon. and gallant Member that according to the provisions of the Persian Loan Agreement of 9th August, 1919, the loan to Persia was to be paid as required after the British Financial Adviser had taken up his duties at Tehran. The British Financial Adviser has now reached his post and is examining the financial position. The greater bulk of the loan is still available, and no interest has accrued as yet.

Lieut.-Commander Kenworthy: On what Vote is this money charged?

Mr. Harmsworth: On the Foreign Office Vote.

Tariff

Captain Benn asked the Under-Secretary of State for Foreign Affairs what progress has been made with the work of revising the Persian tariff; and is it proposed under it to give a preference of any kind to British subjects?

Mr. Harmsworth: The Persian tariff of 1903 was revised by a Joint Commission appointed by the British and Persian Governments under the Anglo-Persian Agreement of 9th August, 1919, and the revised tariff has been in force since 2nd April, 1920. A complete English translation was published as a supplement to the Board of Trade Journal of 20th May last, a copy of which I am sending to my hon. and gallant Friend. The rates of the new tariff apply equally to imports from all countries enjoying most favoured nation treatment, and no preferential treatment is given to British subjects.