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                          2. As soon as the line is complete and the cost of materials and charges of the engineer
                      and telegraph ship have been paid, the line shall be handed over to the Persian Ministry
                      of Telegraphs. The Persian Government shall also have a telegraph office built at Henjam
                      at their own cost and appoint Persian telegraphists. The Bunder Abbas line shall be
                      connected with the Persian telegraph office at Henjam and all messages for abroad which
                      arc received from Bunder Abbas and which are to be communicated by the English tele­
                      graph office at Henjam shall be received by the Persian telegraph office and immediately
                      transmitted to the English telegraph office.
                         3. The charges'to be made by the' 'Indo-European Department for the services of the
                      engineers and telegraph ship shall not exceed 75,000 rupees and the payment of the above
                      sum is guaranteed by the Persian Government.
                         4.  The declaration of the Persian Government that it will not employ foreign, xe,,
                      non-Persian subjects in the working of the line shall not be held to preclude it from
                      employing at the usual charges such subjects in the service of the Indo-European Tele­
                      graph Department for any repairs to the submarine cables or other works which may be
                      necessary in connection with the maintenance and upkeep of the line, nor from allowing
                      at the Bunder Abbas office a British signaller to deal with State messages sent on behalf
                      of the British Government to and from its Consulate at Bunder Abbas should the British
                      Government desire it.
                         Done in duplicate at Tehran on the 13th day of May in the year 1905, equivalent
                      to the 8th day of Rebbi-ul-Avvcl in the year 1323 A. H.
                                      Seal,                    (Sd.) A. Hardinge.
                          335. It will be noted that the agreement provides for a Persian Telegraph
                      Office being built at Henjam at the cost of the Persian Government and worked
                      by Persian telegraphists. Sir A. Hardinge pointed out to the Shah’s Govern­
                      ment the unnecessary waste of money involved in this, but the Shah, it appears,
                      persisted in inserting the clause.
                          236. Captain Trevor reported on 4th November 1905 that the cable portions of
                      the line had been successfully laid up to Bandar Abbas. The Governor objected—
                      pending receipt of instructions from Tehran—to allow the cable to land there ;
                      and it seems the Belgian customs authorities urged him to this course. When
                      it was, however, explained that the delay of the telegraph ship would cost the
                      Persian Governmenc Rs. 700 a day, which he might have to pay* the cable was
                      allowed to be landed.
                         (iv). Enoroachinent of Persian customs officials on telegraph station ground at
                            Henjam. Erection of Persian and customs flag staffs on' the island.
                          337.  The Persian Government suspecting that the British Government had
                      ulterior aims in establishing themselves at Henjam, have been making them­
                      selves as obstructive as possible at the telegraph station. From the records
                      of the Residency it would appear that the old telegraph station extended from
                      the northern end of the island back to the cliff line on the southern side of the
                      valley. Within this.space the Persian Government have erected two flagstaff's,
                      and established a Customs Mirza, who for fear of the Arabs rising against him
                      resides in a hut close to the telegraph station and under the shelter afforded
                      by the presence of the Telegraph Superintendent.
                         338. The position of the flag staffs and customs hut, etc., is explained by Major
                                                    Cox in his report No. 343, dated 2nd June
                      Secret E., September 1905, No*. 68-104 (No. 94).
                                                    1905,and a sketch map accompanying it:—
                         11 4. I now have the honour to record the present position in regard to one or two   1
                      matters of detail and to request consideration of them and such action as may be deemed   I
                     necessary.
                         1. Flazstaffs.—At present we have no fiagstaffs anywhere on the telegraph station;
                      whereas the Persians rejoice in two, vide sketch map attached ; one which 1 will call
                      (<i), 200 yards to the east of our building and the other (£), about 400 yards to the west of it
                      and known as the Customs Flagstaff. From both of these the Persian flag is now flown,
                     though up to our return to the Island last year no Persian flag had ever been hoisted on it.
                         The erection of (<i) in its present position was reported in Residency telegram, dated
                       No. *533 in Secret E.,. February 1905, No*. 3rd January 1905, and His Excellency the
                      1523—1536, and No. 1539 ibid.   Minister in his telegram of 14th January replied
                      that he was suggesting to the Persian Government that some arrangement should be come
                     to between our telegraph clerk and the local officials as to the position of the said flag­
                     staff. He has not however since been consulted. Tho Persian flag commenced to -be
                      flown from it on 14th October 190-4.
                         Flagstaff (6) was erected by the Director-General of Customs during his visit to Hen-
                     jam on 20th November 1904. It was set up on an elevated spot overlooking our telegraph
                     buildings; and was planted among some masonry debris which are averred by old ser­
                      vants of the Telegraph Department who served there at the time of our former occupation
                      to be the remains of the quartets occupied by Mr. Floyer, one of the telegraph staff. The
                      present Superintendent was not consulted in anyway as to the position chosen.
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