Page 82 - Gulf Precis (VII)_Neat

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CHAPTER VI.
Karnn River subsidy, 1890-1900.

190. In May 1890 Messrs. Lynch Brothers represented that thoy wore
working their steamer service on the Karun rivor at a loss, and thorofore
solioitod a postal subsidy of JC 3,000 a year for five years to enable the Company
to carry on the service. They showed that the expenses attending the navigation
largely exceeded tho revenue, in 1888 .GG51-4-1 having been written off and in
1889 a further sum of £ 3,674-17*3. They also represented that they carried
300 to 400 postal letters and parcels in each steamer without assistance from
Government.
191. As regards their scrvicos to tho Postal Department, the arrangement
at tho timo appears to have been this. The Euphrates and Tigris Steam
Navigation Company’s steamers carried mails between Basrah and Baghdad,
for which they were paid Its. 36,000 a year by tho Indian Government. At the
request of the British Consul at Basrah, an arrangement was made in Juno
1889, by which letters addressed to Mohamtncrah, which had previously
remained at Basrah until called for or until the period for retention in deposit
had expired, were made over to Messrs. Lynch and Co., for conveyance to, and
delivery at, their office at Mohammcrah. When the Karun was opened, their
steamers carried letters and postal articles up and down that river, which they
said numbered 300 to 400 in each steamer.
The Secretary of State askod for tho views of tho Government of India on
the Lynch Brothers’ application.
192. The following opinion was expressed by Sir David Barbour, the
Financial Member, on the point in question:—
w I tbiok we should be very careful how we voluntarily accept any charges against Indian
revenues on account of alleged political or commercial advantages in Persia. The general
tendency of the English Treasury is to throw all such charges on India, and so to avoid the
oriticism which would probably follow their entry in the English estimates.
"Wo already have had a long fight about a postal subsidy we pay Messrs. Lynch. The
English Treasury has refused to pay any portion of it, and it all falls on the revenues of
India.
In the present instance, we are asked to pay a postal subsidy for services on the Karun.
But Messrs. Lynch render us no postal services on the Karun, and l think wo should confine
ourselves to sarin!; so, and to refusing to pay a subsidy on this account. If the Foreign Office
! (English) should be of opinion that there are political grounds f.,r paying a subsidy, they can
raise the question directly, and it can be dealt with on its merits.
If we go out of our wny to offer a political subsidy, we shall be placed in a wrong position
and we may be sure that the bargain will turn out very disadvantageous for us.
i I think we should, at the very least, leave it to the English Foreign Offico to say what
they propose. All the Foreign Ollice has done as yet is to* recommend tho question of a
postal subsidy to Lord Cross’ consideration. If, under these circumstances, we volunteer a
political subsidy, we place ourselves at the mercy of tho English Foreign Office, and I feel
confident that our limitatiou of the subsidy to five years will prove effeotive, and that the
subsidy will practically become permanent.”
193. Lord Lansdowno (then Viceroy of India) noted :—
“ I wish the postal question bad been made clearer. They do carry letters and parcels, they
gay 800 to 400 in each steamer and I suppose Indian subjects benefit by that to some degreo.
But however this may be, the efforts made by England to regain political influence in Persia
-are mainly for the 6ake of India and 1 do not think wo need grudge the payment of un
additional £1,000 to help in securing that eud.”
I
194. The Government of India replied
Hid No. 17.
to the Secretary of State in their telegram,
dated 30th August 1890 :—
“ Messrs Lynchs’ postal services do not benefit the Indian Post Offioe or justify the proposed
subvention from Indian revenues ; but if the maintenance of the service is considered by Bor
Majesty s Government to bo desirable on political grounds, a contribution of not more than
£ 1,000 a year for five years will be paid by the Indian Government.”