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              "In our opinion, tho energetic prosecution of negotiations for tho purpose cf opening op
          this important commercial highway is very greatly to bo desired. Wo foar that if wo wait for
          m favourable opportunity, such an opportunity may never arrivo. Wo trust that tho influence
          and ability of Her Majesty’s Minister at tho Court of Tehran will enable His Exccllenoy to
          create * a favourable opportunity, * if he i6 instructed to do so ; and wc aro of opinion that an
          effort should bo mode without delay to placo the mattor boforo tho Persian Ministers, and to
          urgo upon them tho advantages which may bo oxpeoted from an early settlement of tho ques­
          tion, both in tboir own interests and in those of British merchants.
              "If Your Lordship agrees with us, wo would suggest, for your consideration, that Her
          Majesty's Secretary of State for Foreign Affairs should be moved to communicato instructions
          in tho above sonso to Mr. Taylour Thomson. "
              78.  A copy of Mr. Thomson’s letter of 1st July 1876, to the Government
          of India, having been sent by tho Foreign Office, London, to the India Office
          for Lord Salisbury’s opinion, it was said, in reply, that on the general question
                                         Lord Salisbury bad'nothing to add to the
             Sccrot, October 1S7G, Ko. C8.
                                         views he had previously expressed. It
          seemed, however, to Lord Salisbury, from the tone of Mr. Thomson’s letter, that
          he was disposed to regard tho circumstance that no special privileges had been
          granted to Russian trade in the north of Persia as in some sense reducing tho
          significance of the rejection by the Persian Government of the schemes which
          had been proposed for improving and opening out the trade routes in the south,
          and as rendering less urgent the necessity for further steps in the matter. It
          was said—
              "Lord Salisbury cannot at all take this view. So long as the south of Persia is allowed
          to remain undeveloped, and accessible to commerce only with difficulty, no special privileges are
          required to secure to Russia, who has the command of the northern trade routest predominant
          commercial advantages.
             " There aro good grounds for believing that Russian diplomatic influence at Tehran has
          been used with success to insuro the maintenance of the existing state of things so favourable
          to tbe political and commercial interests of Russia, and so opposed to those of Great Britain.
          Under these circumstances, Lord Salisbury trust* that, upon the arrival of the favourable
          moment, which Mr. Thomson is awaiting, the subject may bo energetically pressed upon the
          attention of the Persian Government and that, should a satisfactory result not bo achieved,
          tbe failure may not be owing to any want of appreciation of the importauco of the question
          ou the part of Her Majesty's Representative at Tehran.
             "As regards the question discussed in Mr. Thomson's despatch to Lord Derby, No. 87,
          Lord Salisbury agrees with Her Majesty’s Minister as to the advantages to Persia which
          might be expected from the construction of a railway from Tehran to Shuster by any route
          through the mountains which may bo found practicable. His Lordship is not awnre whether
          this work is included in tho proposals which, it is understood, cither have been, or are about to
          be, submitted by Baron Reuter to the Shah's Government. Should such be the ca?e, and should
          the details of tbe scheme be free from objection, Lord Salisbury thinks that Mr. Thomson
          might be instructed to give it unofficially any support in his power. "
              79.  A copy of this letter having been sent to Mr. Thomson, he explained
                                         to the Earl of Derby that he had neglect­
            Secret, Pebroaiy 1877, No. 16.
                                         ed no opportunity of pressing the matter
          upon the consideration of the Persian Government, and that lie wTas fully
          impressed with the importance of the subject and the necessity of bringing it
          to as speedly a conclusion as possible. He was informed that the consideration
          of tho matter had been renewed, and was assured, by the Persian Minister for
          Foreign Affairs that he himself was in favour of the measure, though ho
          doubted whether.he bad power to carry it through by his individual exertion.
          After the Shah’s return from Europe there were unmistakeahlo signs of his
          viewing with indifference those projects which he formerly entertained for
          hastening {he development of the resources of his country. Mr. Thomson also
          remarked that it was only to he expected that, in all matters favourable to our
          political and commercial interests in Persia and opposed to their own, the
          influence of the Russian Mission at Tehran would ho adversely exerted. He
          pointed to the Falkenhagen Concession to show that tho schemes proposed for
          the benefit of Russian trade in the north of Persia had not been unsuccessfully
          opposed by us. He, however, said he would not fail to be guided by tbe wishes
          of the Marquis of Salisbury with regard to tbe Karun and the Railway Con­
          cession, then about to be submitted by Baron Reuter to the .Persian Govern­
          ment, and to use his best endeavours to induce the Persian Government to
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