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               738.  On 5th December 1904 Mr. Grant Duff was present at a meeting of
           the Grand Vazier, Mushir-ed-Dowleh, and the Director of Customs. The com­
           plaint of the Persian Government was that parcels arriving by post at Bushire
           were not declared at the Custom House, which was contrary to the Rbglement
           Douanierand consequently paid no duty. As we had agreed to the Rfcglement,
           Mr. Grant Duff thought that it was difficult to defend the above practice and
           pending receipt of instructions he arranged that parcels received at the British
           Post Office should be opened in the presence of a Customs Officer who was to
           take a list of addresses and levy duty on goods of persons not exempted by the
           fid'lenient (telegram dated 5th December IQ04).
               739.  The Government of India in their telegram to Mr. Grant Duff dated
                                          14th December 1904—
                         Ibid, No. 490.
                 (0) proposed that the arrangement agreed to in 1900 should be adhered
                       to, supplemented by a provision that all parcels be accompanied
                      by customs declarations, which with invoice of parcels prepared
                      by the Indian Office of Exchange should be enclosed in a separate
                      envelope addressed to the Persian Customs House, and imme­
                       diately on landing of the parcel bags delivered to the Customs
                       House, a similar arrangement has been long in force in Constanti­
                       nople and was in 1891 adopted at Baghdad and Basrah;
                 (b) strongly objected to examination by the Customs House in the case
                       of the letter mail. No such examination occurs at Baghdad or
                       Basrah, and there seemed no reason to suspect evasion of customs
                       dues by means of the letter post;
                 (f) stated with reference to Mr. Grant' Duff’s telegram of 24th November
                       they were prepared to repress rigorously unauthorized immunity
                       from customs dues. The Government of India telegraphed to
                       Captain Trevor to report on this point ;
                 (d) stated as their opinion that the high-handed action reported in Captain
                       Trevor’s telegram dated 2nd December furnished ground for
                      demand for prompt recognition of our special position in postal
                       matters, if under articles 27 and 51 of the Rdglement further
                      attempt was likely to be made to undermine it.
               740. In compliance with a request made by the Government of India,
                                          Major Cox submitted with his letter
                     Ibid, No. 498.
                                          No. 428, dated 24th December 1904, three
           Statements :—
                 Statement A.—List of officers on the Residency establishment who had
                       hitherto been exempted from payment of duty on postal parcels,
                      which includes in fact all members of the Residency establishment
                      and the post office, except the menials.
                 Statement B.—List of officers exempted by the Rdglement Douanier, Article
                      27 (3) as enjoying Diplomatic and Consular privileges, that is,
                       Resident, Residency Surgeon, the First Assistant Resident and the
                       Extra Assistant Resident, Consuls and Vice-Consuls at Bushire,
                       Bandar Abbas, Mohammerah and Ahwaz, and the Residency Agent
                      at Lingah.
                 Statement C.—List of officers proposed to be exempted as Dragomans to
                       Consulates under Article 27 (3) of the Rdglement, namely, one
                       Consular clerk each at Mohammerah, Ahwaz, Bandar Abbas,
                       Kerman, Shiraz, and Ispahan, and the Superintendent and Head
                       Clerk in the Residency Office, and the Consular Clerk of the Vice-
                       Consul at Bushire.
                                            741. On 16th February 1905, Sir A.
            Secret E., November 1905, Nos. 13*38 (No. 14).
                                          Hardinge telegraphed to the Government
           of India :—
              “ It has already been claimed in an official note addressed to the Minister of Customs
           by me that the fiiglcment Legal has nothing to do with the British Post Offices in the
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