§ MR. DRAGE (Derby)I beg to ask the Under Secretary of State for Foreign Affairs whether the loan which the Persian Government has been negotiating with the Imperial Bank of Persia, on the security of the revenue of the customs at the ports on the Persian Gulf, has fallen through owing to representations made by or on behalf of the Russian Government; whether the Imperial Bank is the only British institution in Persia; and whether Her Majesty's Government will communicate to the Persian Government a promise of support in such case similar to that made on 22nd July to the Chinese Government?
§ THE UNDER SECRETARY OF STATE FOR FOREIGN AFFAIRS (Mr. G. N. CURZON,) Lancashire, SouthportThe 281 main reasons for which the recent negotiations for a loan between the Persian Government and the Imperial Bank of Persia have fallen through are the fact that a larger sum has been asked for than the bank are prepared to find, and a change of Government in Persia, accompanied by a strong opposition to anything in the shape of a control of the customs revenues as security for the loan. The Imperial Bank of Persia is the only British institution of the nature in Persia. Her Majesty's Government have gone as far as possible in supporting the bank throughout the negotiations, but they have received no information that the Persian Government desire any such promise of support as is suggested, nor that any threats have been used which would call for such a promise.
§ MR. DRAGEI beg to ask the Under Secretary of State for Foreign Affairs whether any official information has reached the Foreign Office of a desire on the part of one of the Great Powers to acquire by lease or otherwise a port on the Persian Gulf; whether 80 per cent. of the trade of Bushire, the largest port on the Persian Gulf, and 73 per cent. of the whole trade of the Gulf, is in the hands of British subjects; and whether the Persian Gulf is considered as constituting a sphere of British interest?
§ MR. CURZONRumours of such a desire as is referred to in the first Question have from time to time reached Her Majesty's Government, but I cannot say whether any weight should be attached to them. The figures published in the latest consular Report show that two-thirds of the trade of the Persian Gulf is with the United Kingdom and British possessions. The political and commercial responsibilities of Great Britain in the Persian Gulf are undoubtedly of such magnitude as to give to Her Majesty's Government a special interest in these waters.