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Gulf nnd lot me continue the discussion of the latter question, which has already made definite
progress, till it is settled in the sense desired by you, independently of any financial negotia
tions. To this 1 attach great importance and I beg Your Lo:tlship to do me tho honour of
trusting my local Unowlcdgo and judgment on the point. (2) To let mo do my best to frame,
in conjunction with Monsieur Naus, a formula for tho completion of the advance, which whilst
giving you what you desire will enable it to be arranged with a minimum of difiiculty. One
way of doing this would be to add after Monsieur Naus's words “ que les garauties affecteca
en vertu de l'acto ci-dcssus restont acquiscsau remboursement de la dito somme de 290,000/,’’
tho words “ mnisqu’eu vue do 1’insufiisancc des deux premieres garanties y mentionncea &
couvrir la totalitc do Favancc, la somme do 100,000/. qui la complete sera remboursce par le
produit de la troisiiimo ct drenioro, garantic,” to which might be added, if absolutely necessary,
tho words savoir, les Douanes du bars ot du Golfo Pcmque.’, Other ways have occurred
to me of getting round the difficulty, but it is prematuro to discuss them at the present stage.
(3) I should like to be able to encourage tho Ain-ed-Dowlch with the idea that llis Majesty's
Government is propard to assist financially and thus acquire a finger in his Karun irrigation
projects. I have given llerr von Itoggcn. in compliance with a request to that effect from
him, a letter of introduction to Iiis Majesty’s Minister at The Hague whither he has just
proceeded on leave. I feci sure that if we play tho game judiciously and with patience we
may still be able to utilise the financial needs of Persia as advantageously to our interests as
our rivals have done fiom their own point of view in the past.”
324. On these points tho following views were expressed by tho India
Office on tho 25th August 1901;
India Office to tbo Foreign Offico, dated 25tbAu-
guit 1904.
As regards the advance of 100,000/. to complete the sum of 300,000/ offered last year to
the Persian Government, the Secretary of State iu Council is prepared to pay the sum to the
Imperial Bank on learning that the draft agreement enclosed in Sir A. Ilardinge’s Despatch
No. 133, of the 19th July last, which was summarised in his telegram of the 5th July, has
been concluded. The money, I am to add, will be available after one day’s clear notice.
As regards a further loan on the security of the Karun Irrigation Scheme, Mr. Brodrick
is consulting the Government of India on the question of furnishing a sum of 200,000/. for tbe
purpose from Indian revenues, on the understanding that His Majesty’s Government will
guarantee India agaiust the half of any loss in respect of interest or capital.
326. The Government of India was asked to express their views, in the
Secretary of State’s Despatch No. 38, dated 2Gtli August 1901.
327. There are further certain difficulties arising from vested interests
of several parties that are likely to be affected by the projected irrigation works.
328. There werc> firstly, Nizam-cs-Sullaneh and Haji IToyun-ut-Tujjar,
his co-adjutor, who has invested a largo capital into landed property on the
Karun, which would be overflowed by carrying out the works. It would he
necessary therefore to acquire their lands and compensate them.
329. Secondly, the Sheikh of Mohammerali -would be interested that tho
territory round about Mohammerali would not he dried up by the re-building of
tho Ahwaz Dam. He would bo moreover personally anxious to have a share in
the works, and from Lieutenant Lorimor’s letter to Major Cox, No. 25, dated
2nd July 1901, it appears that the Sheikh has three big schemes in view in
which he would invest his money so far as he can, and for the rest of the cost
would be glad to have aid from us. Tho schemos are—
(1) the irrigation of part of Arabistan by 5 or 6 steam pump barges
placed on the Karun below Ahwaz ;
(2) the construction of irrigation works on tho rapids at Ahwaz on the
site of the old “ Band ” ;
(3) the purchase of certain land from the Nizam-us-Sultaneh.
329-A. Tho 1st scheme is the same which Mr. Blunsum of the Basrah
Trading Compauy had conceived and in carrying out which he would be glad to
give his assistance, in consideration of being given a prcferonco in the purchase
of the produce of the land irrigated. It is estimated to cost about £15,000 or
£20,000, which the Sheikh is prepared to spend, but if it should cost more, he
would seek British aid.
329-13. The 2nd scheme would, it is estimated, cost about £500,000, for
which the Sheikh would have wholly to depend upon us.
The scheme, writes Lieutenant Lorimcr, is a very big and difficult one, but
it would turn a largo part of Arabistan into a permanent garden, and, granted
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