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82-A. In a conversation with tlio 8opeh 8alar on 12th August 1878, Mr.
Thomson pointod out that tho liuc9 proposed woro not those which would he
most advantageous to Porsia; that any railway lino which led into her neigh­
bour’s territory would make Persia entirely dependent for her commercial
rolations with Europe upon tho good-will of that neighbour; that the restric­
tions and impediments placed by Russia on foreign trade wero well known ;
and that, therefore, if Persia decided to place her railway system at the outset
in connection with that of Russia, they must he prepared to find themselves
completely at the mercy of that Power ; whereas, by following the route to the
south, she would have access to the high seas, he independent of her neighbours,
and he able to maintain free commercial relations with the whole world. He
said that by throwing open the Karun river, which would cost nothing, by
having a line of railway from Shuster to Ispahan and thence to Teheran,
Persia would place herself in a position enabling her to trade with the whole
world on a fooling oj absolute independence. On it being objected that a sea-
route was much longer than a line of railway through Europe, Mr. Thomson
observed that, not to mention that time was not of much consequence in Persia,
a sea route was much cheaper, and consequently better suited for general trade ;
and that, moreover, as it was not unlikely that a line between Europe and tho
Persian Gulf would, before long, be established, Persia would, by a railway to
tho south, be placing herfe’f in connection with the main line, in which case
there could bo no objection on the score of slowness of transit. In a conversa­
tion with the Shah on 14th August, Mr. Thomson alluded to the prospect of
reforms being shortly introduced in Turkey which would make it almost impera­
tive for Persia, in view of her own interests, to adopt similar progressive
measures; and said that,in his opinion, they could be more safoly undertaken
with the advice and support of England than under tho auspices of Russia.
The Shah replied that it was his intoutiou to carry out a number of reforms,
and that he hoped for the assistance of Ilcr Majesty’s Government in doing so;
but that hitherto he had not derived that support from England which he
bad hoped aud expected to obtain. In referring to the two lines of railway for
which proposals had been submitted to the Shah in Europe, be recommended
a lino from Teheran to the south, and the navigation of the Karun as being
most advantageous to Persia, for the reasons already stated. On his pressing
the question of the Karun navigation, the Shah said that ho had prepared a
Projet de Beformes, which included a Concession with respect to the Ahwaz
irrigation scheme, and would provide for the navigation of the Karun.
83. It was proposed to grant the Concession for the Resht-Teheran line
to a French Company represented by the firm of Allion of Constantinople.
The Concession was for a period of 99 years, after which period the line will become
the property of the Persian Government. The Persian Government guaranteed
6J per cent, on the capital which may ho raised by the Company as shares or
bonds. This percentage is guaranteed by the receipts of the Custom House.
Should the profits exceed tho amount guaranteed, the Persian Government
would receive 50 per cent, of the surplus. The Persian Government was to
grant free all crown lands required by tho Company, hut the Company was to
give compensation for the cultivated parts, and to arrange with the owners of
land the property of private individuals, allowed gratis out of Government
lands, mines and forests, all wood and material required for the construction
of the railway, and coal for working it. Tho scheme* was opposed by the
Russian Minister at Teheran, who proposed, a Julfa-Tabriz line. The General
•From AuWtant Secretary, Political and Secret Palkcnb&gGn’s Scheme. Mr. Ronald
Department, No. 95, deted 26th September 1878.
Thomson opposed the Russian Minister’s
tFrom Her Maje.tv’. cw d'Affairc.. TAarao, proposal as well as Dr. Tholozan’s scheme,
No. igi, dated 2utu soptember 1878, to tho iiarqun under instruciions from the Marquis of
5>r daiubury. . . Salisbury. lief strongly recommended
the Minister for Foreign Affairs to abstain from committing tho Persian Govern­
ment to their acceptance until they had ascertained the nature of the reforms
and projects which would probably, before long, be carried out in the Asiatic
provinces of Turkey, when the^ would he in a better position to judge what
would be expedient for the interests of Persia. He also urged that no such
arrangements should be concluded until some understanding had been come to in
equitable satisfaction of Baron Reuter’s claims. The Council granted the ConceB-
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