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United States Department of State / Papers relating to the foreign relations of the United States, 1919

Persia,   pp. 698-719 PDF (7.5 MB)

Page 698

AUGUST 9, 1919
Reports of Opposition to the Treaty Among the Persian People-Statements
Indicating the American Government's Disapproval of the Treaty-
British Denial that the Negotiations Were Concealed from the American
741.91/21: Telegram
The Miniwster in Persia (Caidwell) to the Secretary of State
TEHERAN, August 11, 1919, 6 p.m.
[Received August 15, 1.45 p.m.]
160. An agreement was signed 9th instant between the British
and Persian Governments in substance as follows: British Govern-
ment emphatically reiterates its pledges to observe political inde-
pendence and territorial integrity of Persia; British Government
will furnish at the expense of the Persian Government all the expert
advisers needed for the Persian administration; Great Britain will
provide military officers and all the arms and modern equipment
needed to reorganize Persian Army; joint Anglo-Persian military
commission to be forthwith appointed to determine Persia's needs;
British Government will provide loans for expenses [of reforms];
for development of Persia British Government will interest British
financiers in railroad construction and other means of transport to
develop trade in Persia and prevent famine. (see Legation's quar-
terly report of July 7th 1); Great Britain agrees to changes in Per-
sia's customs duties (see Legation's despatch 517 of July 16th'
page 10); exact text will be telegraphed as soon as received.
A loan agreement was also concluded on same date in connection
with above by which Great Britain agrees to advance 22,000,000
sterling in such installments as financial experts provided for in
agreement (see Legation's telegram of August 4th, 4 p.m.') shall
determine. It will bear interest at 7 per cent per annum payable
monthly until March 20th 1921 after which monthly sums sufficient
to liquidate principal and interest thereon at 7 per cent per annum
within 20 years will be paid. Loan is secured on customs the same
as British loan of 1911 and after that loan and subsequent advances
by the British it is to have priority. If customs are not sufficient to
meet this obligation, the Persian Government must provide other
adequate security. Loan may be repaid by future British loans.
Full text will be sent later.                       CALDWELL
Not printed.

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