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                             I consider it advisable, therefore, to explain that in my opinion the failure of the
                          mission above referred to had nothing whatever to do with the causes mentioned.
                             I am confident that no other Commissioner, whatever his capacity might be, could have,
                          under the circumstances and considering the nature of his instructions, done anything
                          more than the Special Commissioner whose mission proved a failure. Neither can this
  i                       failure be attributed to the frequent changes in the Local Government. Bushirc, it is true,
                          was after the departure of the Darya IJcgi left without a regular Governor for sometime)
                          but His Excellency the Salar-i-Moazzcm, the present Governor, has now been in Bushire
  j
                          for some months, and lie could have been directed to assist the Special Commissioner if
                          a real desire to bring about a settlement of our long-standing claims had existed. I have
                          thought it as well to make the above observations, as I consider that the explanation given
                          of the failure of the Special Commissioner’s mission should not be allowed to pass  un-
                          noticed.
                             With regard to the Mushir-cd-DowIch’s statement that lie had directed the  new
                          Karguzar to take up the cases in earnest, I am entirely sceptical as to the prospects of
                          speedy settlement by this means. As I have pointed out in a separate despatch, the new
                          Karguzar, however capable an official he may be—and the Mohtisham-el-Vezarch is
                          certainly a capable official—has not the authority requisite to bring about a settlement
                          of even recent claims, and until his position with regard to the Governor is defined, it will
                          be useless for us to refer any of our long-standing claims to him. Many of these claims, as I
                          have already pointed out, arc in reality against the Persian Government itself, and it is
                          clear that it will be useless to refer claims, such, for instance, as those which have arisen
                          on account of goods stolen from the Customs years ago, to the present Karguzar or
                          Governor for settlement. If the Persian Government merely wishes to satisfy itself by a
                          fresh inquiry that the claims arc just, then I see no objection to the present Karguzar
                          conducting such an inquiry, but it should be clearly understood beforehand that the
                          Persian Government accepts the responsibility for the payment of those claims which are
                          proved to be just, taking its own measures subsequently to recover the amounts paid from
                          the persons held to be responsible.
                          (Ixxviil Claim of Messrs. A. and T. Malcolm of Bushire, owing to withdrawal of
                             concession granted to them by the Persian Government for working the oxide
                             of iron (red ochre) mines in Ormuz, 1899.
                             538. Messrs. A. and T. Malcolm, merchants at Bushire, obtained a con­
                         cession for the working of the oxide of iron (red ochre) mines in the island
                         of Ormuz in the year 1897, and received, as is usual in such eases, a firman
                         from the Persian Government, countersigned by His Majesty the Shah Mozaffer-
                         ed-Din.
                             Shortly after the acquisition of this firman the concessionaires took
                         possession of their mining properties in the island, and commenced work on
                         what appeared to be a very valuable monopoly.
                             539.  Previous to the arrival of Messrs. Malcolm on the scene, the mines had
                          been worked by the Moin-ut-Tujjar, a merchant well known in Southern Persia
                         as a rival of Messrs. Lynch & Co. on the Karun river, where he has for years
                         carried on business under the name of the Nasiri Company. It may be mentioned
                         in this connection that the greater part of the opposition we have hitherto
                         experienced on the Karun can be traced to the Nasiri Company, and indirectly
                         therefore to the Moin-ut-Tujjar. This gentleman contested the rights of Messrs.
                         Malcolm & Co., obtained under a concession granted by Mozaffer-ed-Din Shah, and
                         produced a document issued in the time of Nazr-ed-Din Shah, purporting to give
                         him the monoploy of all mining rights for a long term of years. The Persian
                         Government, without waiting to discuss the relative merits of the firmans and
                         documents held by the two parties, and without reference to this Legation, seized
                         the properties and transferred them to the Moin-ut-Tujjar. Messrs. Malcolm & Co.
                         at once protested and appealed to Her Majesty’s Legation to protect them.
                             540.  The question at issue between the two parties was one of Persian law
                         and custom, and turned on the right of the Persian Government to issue and
                          cancel at their own will and pleasure, firmans granted to private individuals.
                             54?. As both parties were willing to allow the question to be decided by the
                          highest authority in the country, that is, by the Sadr-i-Azam, Mr. Hardinge, Her
                          Majesty’s Chargd d’Affaires, agreed to transfer the case to his decision and
                          to abide by his arbitration ; but insisted on the retransfer of the mines to Messrs.
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