Page 85 - Gulf Precis (VII)_Neat

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205. When the point wa9 discussed by tho Governor Gonoral in Council,
Sir J. W. Westland urged that as tho Tigris and Karun Navigation went hand
in hand together, tho subsidies paid for tho enterprises on them should be
taken into joint account, in which the Imporial and Indian Governments should
each tako half a share.
20G. Aftor considerable discussion it was deoided to reply as follows to
tho Secretary of State (telegram dated brd February 1S9G)
“ Wo ngreo to meet tho views of the Foreign Office on the understanding that the wbolo
question of the distribution of tho cost on accouut of the Tigris and Karun bo roferred to tho
Royal Commission now sitting.”
207. Her Majesty’s Government decided to lay the question of the division
of charge between tho Home and Indian
External A, May 1890, Noe. 203-211.
Governments before the Royal Commission
and pending the submission of their report and the issue of further orders
thereon, tho Secretary of State for India sanctioned the resumption of tho
payment of a contribution of £1,000 a year from Indian revenues towards tho
Karun navigation with effect from the 1st January 1895.
208. Wc come then to the famous despatoh of Lord Curzon’s Government
addressed to tho Seoretary of State, in
Seorct E., November 1899, Noi. 10*11.
which the wholo Persian problem was
discussed both in its political and financial aspeots, and in which, with regard
to Karun subsidy (paras. 69 and 75), the Government of India expressed
in strong terms their agreement with the views of tho previous Governments
in respect of the Imperial and non-Indian character of the charge.
209. In September 1899, tho Lynch Company applied again for a further
continuanoe of the subsidy for five more
Secret E-, February 1900, Noi. 46*47.
years. Tho following were the argu­
ments adduced this time:-*■
(1) The enterprise had shown continued, though slow, improvement
the deficit having fallen from £ 5,000 in 1890 to a little over
£ 2,000 in 1898.
(2) Of tho cargo carried during 1898 up the Karun, about half were
imports from Bombay.
(3) Unforeseen difficulties among which tho principal was the embargo
laid oq export of cereals had oome in tho way of a prosperous
business.
(4) The heavy expenses for maintaining tho read from Ahwaz to Is*
pahan.
(5) The reduction of the Tigris subsidy.
210 The application was referred for observations to the Government of
India and Lord Curzon’s Government
Ibid No. 46.
addressed the following reply (despatch,
No. 228, dated 21st December 1899) :—
“ Wc have already noticed this question in paragraphs 89 and 76 of our Sccrot despatch
No. (External), dated 21st September 1899, to which reference is made in Sir Horace Walpole's
letter to the Foreign Office, dated the 31st October 1899. The Indian contribution to tbe
Karun subsidy is not in our opinion necessary in tbe interests of Indian trade, and we are
reluctant to continue it. We are, however, willing, if Your Lordship considers this desirable,
to bear a moiety of tho Karun subsidy for one year more, namely, for the calondar year 1900.
We agree to this, in the first place, because we assume that tho report and recommendations of
the Royal Commission will bo issued during the coming year, and, in the second pleco, because
we are awaiting a reply to our despatch of the 21st Septomber 1899, which deals with the whole
question of tho maintenance of British influence in Persia. We desire, however, to state that
we cannot agree to prolong the contribution beyond the year 1900, and toe would once more call
Tour Lordship's attention to the inequity of on arrangement whereby Indian revenues not only
meet half the Karun subsidy, in lohich Indian interests, if they can be taid to exist at all, are
insignificant, but also bear the whole charge for the Enphratcs-Tigris subsidy, in whose object
the Imperial Government it at least equally and indeed in our opinion more vitally concerned.
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