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under 8uoli conditions, trade by the Suez Oanal would beat that by the north
completely out of tbo field. He added :—•
*< This route, onoo openod up to trofllo, must quickly supersede the present ono via Shiraz
In distance it is 9 to 10 days shorter; the passes nro nowhere so rough as botweon Rushiro and
Shiraz; and with no greater objection to it, it has the advantages of more water, moro timber
aud a cooler climate. Tho bazars of Shuster at present aro largely supplied with ohintz and
goods from Russia, notwithstanding tho long and expensive land-carriage they have to bear,
and that, too, although Shuster might bo placed within two days’ communication with the
Busrab river, where, having regular steam service, thoy might be placed weekly within reach
of all tho foreign markets. Tho opening of tho Karun to steam navigation would, I believe,
not only force back tho Russian trade to its natural limits, but it would drain tbe most fortilo
provinces of this country of, if they could but find an outlet for, tho produce they aro capable
of raising, thereby enrichiug its ryots and increasing tbe general wealth aud prosperity of the
country. ’
Mr. Mackenzie waa said by Sir Lewis Pelly and by Mr. Taylour Thomson to
be a olear-hcadcd, praotical man, little given to illusions, and who. would
regard tho line simply for its adaptability for profitable trade. His statements
could therefore bo robed upon.
67. In a letter dated 2nd September 1875, Mr. Mackenzie was thanked
by the Government of India for bis valuable communication. Mr. Aitobiaon
looked upon the Karun route as ono of vast importance, and considered it very
desirable that we should pre-occupy tbe ground, as Russian trade was gradually
pushing down towards the Persian Gulf. A copy of the report was sent by tho
Government of India to Her Majesty’s Minister at Tehran, who was asked for
an expression of bis views as to the value, commercially and politically, of
opening up the Karun route, the prospect of any steps being taken by the
Persian Government towards the development of trade in that direction.,
and whether the Persian Government would view with satisfaction the establish*
ment of a line of steamers, as suggested by Mr, Mackenzie. No reply to this
communication appears to have been received from Mr. Thomson.

68. In November 1875, Mr. T. K. Lynoh, tbe Managing Director of tbe
Euphrates and Tigris Steam Navigation
GeneralA. July 1876, Noe. 1*3.
Company, addressed Lord Derby. He
asked that, if a concession were obtained from the Persian Government for
tbe navigation of the Karun, his Company might be allowed to compete in
tendering for any mail service contemplated on that river. He said that his
Company had maintained, mercantile establishments for over 30 years on the
rivers of Mesopotamia; that their steamers bad navigated tho Tigris for over 14
years ; that they had run a line between Mohammerah and Basrah, connecting
the Karun and its traffic with the Persian Gulf and Baghdad ; had endeavoured
to develop direct traffic between the Persian Gulf, Baghdad, and Ispahan; and
had a line of vessels carrying on direot trade between London and the Persian
Gulf 6ince 1841. They therefore thought they had a right to be considered,
if any future development of trade vid Shuster was to be supported by Govern­
ment subsidies. He was told, in reply, that his application would receive
attention. Mr. Lynch sent a copy of the papers to His Excellency the Viceroy
and asked that, in the event of any action being taken in the matter, his claim
might he supported.

69. On 20th May 1875 Lord Northbrook recorded a minute on the subject
of our relations with Persia, and a pro?
Secret, July 1875, No. 154.
posal-made hy Mr. Taylour Thomson for
furnishing material aid to Persia for the purpose of preventing Russia acquir­
ing the district of Merv. The minuto concluded with the following para-
graph:—
M ^ should be disposed to encourage and support any substantial proposal f°r opening out
communications between the Persian GulE and tho interior of Peraia. This would not only
iocreaso tbs trade between Indi$ and Persia, but also strengthen our military position, if wa
*fe ever called upon to advance into thp interior of Persia.”