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                            707.  Writing on the 7th November 1902, to Mis Britannic Majesty’s Charg6
                        d'Affaircs, Tehran, Colonel Kemball referred to Foreign Office despatch No. 65,
                        dated 5th July 1902, and pointed out that the Customs authorities continued to
                        charge an export dutv of 10 per cent, ad valorem, not only upon livestock and
                        cereals, the export of which had been prohibited, but also upon rice, ghee and
                        potatoes, even though these articles may have already paid an import duty of 5
                        per cent, and one of 20 per cent, ad valorem upon livestock sent on board Bri­
                        tish ships.
                            708.  In reply His Majesty’s Minister in his No. 6, dated the 20th March
                        1903, forwarded a copy of a despatch which he had addressed to the Foreign
                        Office on the question, in which it was mentioned that Monsieur Naus  now
                        stated that the levy was noc export duty but “ payment for exemption.”  His
                        Excellency finally directed that in accordance with M. Naus’ wishes a formal re­
                        presentation should be made to the Chief of Customs, Bushire. A reference
                        was forthwith made to the local Customs and they were asked to refund the duty
                        hithertovpaid in excess of 5 per cent., but in spite of the fact that the suggestion
                        to address the local Customs emanated from M. Naus, the Director-General
                        referred the Residency back to bis Chief and said he could do nothing without
                        his instructions.
                            709.  From April 1903 onwards further fruitless correspondence ensued and
                        the local Customs would give no other answer than that they had referred the
                        matter to M. Naus, and in spite of repeated reminders, they merely intimated
                        that M. Naus had not yet issued orders.
                            710.  This unsatisfactory state of affairs continued until the 30th June 1904
                        when His Majesty’s Minister was again addressed in this office No. 90, and asked
                        to press the Central Customs authorities for a definite settlement. A further
                        reminder was sent on the 28th February 1905.
                            711.  On the 19th April the Director-General communicated the decision
                        of the Central Administration, Tehran, which states that the “ taxe de dispense ”
                        on the exportation of cattle and cereals was fixed at a uniform rate of 10 per
                        cent.,, and that the Bushire Customs were therefore right in demanding this rate of
                        duty. - No mention whatever was made regarding the refund of duty levied in
                        excess of 5 per cent, upon other article thain livestock and cereals for which we
                        have continually pressed.
                            This last communication is dated Tehran, 28th March 1905, and is not
                        signed by Monsieur Naus but by Monsieur Lavers.
                            712-13. Major Cox again asked the British Minister on 8th July 1905 to
                                                      press for the refund of the excess duty
                            Secret E., October 1905, No. 168.
                                                      paid.
                        (cvli) Purchase by the Persian Government of five steam launches f^r Customs
                                           Service in the Persian Gulf, 1903-05.
                            7ilf. The Persian Government in September 1903 expressed a desire to have
                                                       •three small steam cutters at about £3,000
                            Secret B., August 1904. Nos. 94-101.
                                                       each for Customs Service in the Persian
                        Gulf. They had offers from Europe, but preferred to purchase them in Bombay.
                        In November 1903, the Persian Minister of Customs informed Mr. Grant Duff
                        that a grant had been sanctioned to provide five steamers in successive delivery.
                           .715. The Government of India ascertained from the Director of the Royal
                        Indian Marine that the steam launches required could be constructed in the
                        Bombay Dockyard at an estimated cost of a little in excess of ^3,000 (Foreign
                        Department letter to Sir A. Hardinge, dated 20th January 1904).
                            716. The Persian Government accepted the tender of the Royal Indian
                                                      Marine for the construction of the steam
                         Secret E., February 190J, Nos. 1539*1549.
                                                      launches for about £3,000 each. They
                        were willing to pay the price'mentioned by the Government of India, but M.
                        Naus requested that, if possible, the extra 25 per cent, charged by the Royal
                        Indian Marine on orders executed for Foreign Government should in this case
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