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                           tho Counoil of State, He was Instructed by the Marquis of Salisbury to oppose
                           os on formor occasions, tho conclusion of such arrangements until the Persian
                            • prom n.M'.. Ch»rg< d'Affoire*. T*hor»n, No. Government had come to some under-
                           lei, dated 20th September 1878, to tbo M*rquii of standing with Baron Reuter in eouitahlo
                           s*iubory. (DUry No. 8780-e.)   satisfaction of bis claims. After Dr
                           Tholozan’s return to Teheran, he had pressed* his proposal constantly on thq
                           Bhah, and was supported by several of the Chamberlains who have considerable
                           influence with Bis Majesty. On one occasion tho Shah, said lo the Minister
                           for Foroign Affairs that it had bettar bo granted at once. Mr. Thomson, how­
                           ever, endeavoured to dissuade the Minister for Foreign Affairs from giving the
                           Concession, and told him that Her Majesty’s Government wero of opinion
                           that such Concessions should not bo granted until the Persian Government had
                           come to aA arrangement with Baron Reuter. On 2Gth October 1878, Her
                           Majesty’s Cliargd d’Affaires at Teheran telegraphed that tbo bhah bad caused
                           the Concession to he given to Dr. Tholozan, as an inducement, it was believed,
                           to cbntinuo bis attendance on His Majesty. With a view to prevent its execu­
                           tion, Mr. Thomson oommuuioated a memorandum to tbo Minister for Foroign
                           Affairs, pointing out that, in addition to its being adverse to the interests of
                           Persia, it infringed on Baron Router’s Concession, and clauses 4 and 6 of the
                           proposed agreement were opposed to treaty stipulations. The clauses referred
                           to are as follows i—
                                —Quc si une &1use on des &luses sont ndeessaires, h c®te du barrage, pour le passage
                           des natires ou des bateaux, la compagnie aprfcs avoir etabli scs frais ces constructions, y aura
                           ■eule 1*3 droit de circulation; qu’elle sera libre do conceder «3 droit h tel ou tel, moyennant
                           redovancc, et oprfis information donnee par elle au Gouverncment Persan; quo dans ce caa lo
                           Gouvernement Persan percuvra le quart du r6venu net de co droit de passage.
                              “ —Que sur le cours du Karoun entro le barrage d’Ahvaz et le mer, personae d'aotro
                           que la compagnie n’aura le droit d’etablir des constructions quelconques 6ur les terree
                           arrosees.”
                              These objections were taken into consideration by the Persian Government.
                            f Telegram from HM.'a Chargo d’Affaires,   The result was that, on 15th December
                           Teleian, dated 16th December 1878.  lS78,f the Minister for Foreign Affairs
                           informed Mr. Thomson that they had fully and finally resolved to cancel the
                           Concession, and that Dr. Tholozan had undertaken, by a formal promise to tho
                           Shah, to return the signed document as 60on as he could get it back from Faris^
                          The Minister for Foreign Affairs said this decision was in consequence of the
                          memorandum communicated by Mr. Thomson to the Persian Government
                          wiboh, he said, " had opened their eyes to the objectionable nature of the
                          scheme.”
                              91. In a letter to the Marquis of Salisbury, No. 205, dated 6th November
                           1878, Mr. Thomson reported regarding the objections he raised against the grant
                           of the Ahwaz Concession. The cause, which authorized tho Company to
                           construct locks at Ahwaz and to give or refuse the right of passage through
                           them to vessels other than their own, would, if carried into effect, close tho free
                           navigation of the Karun above Ahwaz and give the Company a monopoly
                           between Ahwaz and Shuster. This Mr. Thomson considered, would infringo
                           the privileges which we are entitled to claim under the most favoured nation
                           clause of tho Treaty. The 6th clause of the appendix stipulated that no
                           buildings should be erected by tho Company, on any of the lands which
                           were susceptible of being irrigated by the waters from the dam at Ahwaz. He
                           considered this clause might be made to cover every foot of land on both sides
                           of the Karun from Ahwaz to the Persian Gulf. It would thus interfere with
                           the right we had to acquire property and to possess and erect buildings necessary
                           for residence and trade under the 6th Article of the Treaty of Turkomancbi
                           and the 12th Article of the Treaty of Paris of 1857, conferring upon us all
                           privileges which were accorded to Russian subjects in Persia. Mr. Thomson
                           also reported that lie had been told by the French Minister at fleheran that
                           hia Government did not view the project with favour. They had instructe
                           him to inform Dr. Tholozan that they would not efford the holders of tuo
                           Concession aDy countenance or support.
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