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                                          (fV) Discussion of the question in 1874-77.

                              570. Towards the close of 1874 the firm of British merchants, Messrs.
                                                        Gray, Paul & Co., purchased some land
                           Political A., Sfp-.emter 1875, Nos. 166*195.
                                                        at Bushirc on which to construct  ware-
                          houses. The Foreign Office (Persian) Agent at Bushirc, however, declined to
                          recognize the validity of the transfer, or to register the deed of sale until the
                          receipt of orders from the Persian Foreign Minister at headquarters. Messrs.
                          Gray, Paul & Co. referred the matter to Colonel Ross, who in his turn pressed
                          Mr. Thomson for the issue of the necessary instructions from the Persian
                          Minister.
                              571.  Accordingly on the iSth May 1875 the necessary instructions were
                          issued by the Persian Minister : but the extent of the land purchased by the
                          firm was rigidly defined and stringent orders were issued that the limits should
                          not be exceeded : and that, should the firm build over and above the dimensions
                          thus specified, the local authorities at Bushire should prevent such building ore
                          if necessary, pull down whatever might be built in excess.
                              572.  So ended the matter as far as Messrs. Gray, Paul & Co. were con­
                          cerned. But on the 22nd May 1S75 Mr. Thomson addressed the Foreign
                          Minister with reference to a form of expression made use of in the issue of the
                          above instructions, vis., that they were issued
                               by the Persian Ministers out of respect for the British Legation, and with a view to
                          friendly co-operation which they deem necessary as far as possible.”
                              Mr. Thomson, writing to the Minister on the 2Tnd May, drew his attention
                          to the fact (which he had stated in a previous letter) that the right of construct­
                          ing the warehouses was based on Treaty stipulations, and that Her Majesty’s
                          Government had on a previous occasion instructed his predecessor, Mr. Alison,
                          to insist on the principle of the undoubted Treaty right of British subjects to
                          acquire land for the purpose of building warehouses whenever any occasion might
                          again arise for so doing.
                              573.  In reply to this letter the Foreign Minister urged that in no Treaty
                          had the right of constructing buildings been guaranteed to the subjects of any of
                          the most favored nations, but
                          ** merely that as in former times it was difficult to rent warehouses in Persia, provision was
                          made in the treaty regarding permission to purchase a site for warehouses.”
                          He contended that the subjects of any friendly power have no right to purchase
                          any other land beyond a site for habitation and warehouses when they arc unable
                          to secure the same by hire.
                              574.  In reply, Mr. Thomson drew the Foreign Minister’s attention to
                          Articel V of the Treaty of Turkomanchai with Russia and to the 12th Article
                          of the Treaty of Paris (most favored nation clause) as showing that British
                           subjects have the undoubted right of acquiring house and warehouse property in
                           Persia, and he insisted on this principle—referring to the numerous cases in
                           several parts of Persia where lands have been acquired and built upon by foreign­
                           ers, and expressing a hope that measures might be adopted such as would
                           prevent hereafter a repetition of the ** vexatious discussion of this principle ”.
                              Here the correspondence ended.
                              575.  In 1876, the Persian authorities at Bushire having declined without
                            Political A., September 1S7J, Nos. if/»-:oj.   orders from head-quarters to permit Messrs.
                            .Political A., Mirch i$;0,Nos. 179-1$!.
                                                         Gray, Paul and Co. to build a dwelling
                           house for accommodation of members of their firm outside a Bushire on a plot
                           purchased by them for the purpose, Colonel Ross requested the intervention of
                           the British Minister at Tehran on behalf of the firm. The required concession
                           was granted after some demur.
                               576.  In 1876 the consent of the Persian Government to the removal of the
                                                         Telegraph OlTice at Bushire to another
                               Political A., April 1877, Noj. 3co 301.
                                                         neighbouring and more healthy site was
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