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satisfactory solution of this question, and that they do not doiiro to press for any concession
of special privilogeB, cithor to British merchants generally or a particular British firm, but
would bo satisfied with a grant of facilities which would bo generally available, and would
involvo no expenditure on the part of tho Persian Government.”
70. In a letter to tho Earl of Derby, dated 2nd July 1678, Mr. Thomson
. . „ , v IQ** v„ A* remarked that thePorsian Government wore
Brerot, October , . . still desirous to negotiate with European
capitalists with a view to tho establishment of Railway communications in Persia.
Ho suggested that it might bo advantageous to both parties if tho Porsian Gov­
ernment and Baron Reuter could agree upon a modified concession -which would
free tho former from embarrassing conditions which they were unable to fulfil,
and afford the latter a reasonable compensation, and embrace at the samo time
tho construction of a Railway from Shuster to Teheran, by way of Ispahan.
Ho pointed out the advantages of such a lino. It would place tho capital and
contral provinces of Persia indirect and independent communication with the
soa instead of, as in all the other Railway proposals, in communication with
Russia, who would doubtless impose such conditions of traffic as would suit its
interests alone, irrespective of those of Persia. It would give us command of
the Persian markets as far north as Teheran, and enable us to compete on
equal terms with Russia in Khorassan. It would open up a most lucrative
passenger traffic by conveying pilgrims to Koom from Ispahan and Teheran,
and from Persia generally to the shrines in Turkish Arabia and to Mecca. It
would also form an admirable feeder of any Indo-European line that might be
established.

77. In a letter to the Government of India, dated 1st July 1876, Her
s.cr.1, October 1876, No. 08. Majesty’s Minister at Teheran made some
' remarks on the memoranda by Sir Lewis
Pelly and Major Champnin. He entirely concurred in all that was said by them
as to the manifest advantages which would accrue to British commerce in Persia
by the establishment of steam navigation between Mohammerah and Shuster. His
attention had for many years been directed to the importance of Mohammerah
as an entrepot for commerce; and in 18-r'G he addressed a memorandum to
Government, in which he embodied his views on the subject, as well as upon
its value from a strategic point of view in the event of our acting either in
alliance with Persia or being engaged in hostilities with her. Ho, however,
said that it might be inferred from Major Ohampain’s statements that special
privileges had been conceded to Russia in tho north which had been withheld
from us in the south, but that this was not the case. Persia, he said, had done
nothing in the way of road-making for trado purposes, either in the north or in
the south. He then referred to the negotiations which had been going on for
several years for concessions in Persia, especially the navigation of the Karun
•River. He said that the nature of tho dues and charges to which the Persian
Government considered themselves entitled had not yet been published, as the
Minister for Foreign Affairs said would be done. He explained that it was not
always possible for a Persian Minister, even if well disposed, to carry through
a measure which ho might consider advantageous. He therefore “ determined
to await a favourable moment before pressing this matter further upon the Persian
• . « . v v- Government.” In a letter, dated 25th Sep-
tember 1876, Mr. Taylour Thomson was
thanked by the Government of India for tho information he gave. He was,
however, told that the Gpvernment of India regarded the soheme for opening
the Karun river to navigation as one of importance to the interests of India,
and that the Governor-General in Council could not refrain from expressing
regret that ho could not see his way to arriving at an early understanding with
the Persian Government on the subject. A copy of tho papers was at the same
time sent to the Secretary of State for India with the following remarks
" Her Majesty’s Minister at Tehran appears to appreciate fully the benefits which would
accrue both to the British Empire and to Persia from the establixhment of steam navigation
between Mohammerah and Shuster, His Excellency appears to have made some progress in
his discussions with the Persian Minister for foreign affairs, when s dispute about the levy of
navigation dues and charges arose: and the question has now apparently boon indefinitely
postponed until a favourable moment shall arrive for pressiog it on tho Persian Government.