HC Deb 17 April 1928 vol 216 cc28-30W

asked the Chancellor of the Exchequer (1) the situation of the loans and advances made to the Persian Government between the years 1912 and 1920, indicating in each case the original amount advanced, the rate of interest stipulated, the capital amount due in April, 1925, and the security upon which each of these loans and advances were made, and the currency in which repayment is to be effected;

(2) whether the reduction of £2,000,000 agreed to by His Majesty's Government in April, 1925, in respect of various loans and advances made to the Persian Government between 1912 and 1920, is a proportionate reduction of each loan or advance, or whether the reduction has been secured by the total or partial abandonment of some of the British claims in respect of loans and advances; and, if so, which claims have been abandoned?


I have been asked to reply. The subjoined table shows the position of the loans and advances in question. The reduction to £2,000,000 offered by His Majesty's Government in April, 1925, and subsequently accepted by the Persian Government subject to ratification by the Persian Legislature, was a simple reduction of the total amount and was not in any way apportioned between the various items. It was proposed that the reduced amount of £2,000,000 should be repaid by 25 annual instalments of £180,000 each, this figure including interest at 7 per cent. and sinking fund. In all eases the loans are repayable in sterling and should bear interest at 7 per cent. This interest is being paid regularly in the case of the 1912–1914 advances, but not in the other cases.

Loans and Advances to the Persian Government, 1912–1920.
Principal. Security.
Local Currency. Sterling.
(A) Advances, 1912–14 490,000 Repayable from any large loan negotiated by Persian or revenues of Persian Gulf Ports.
(B) Advances, 1915–17 409,000 Southern Customs.
(C) Loan of August, 1919 131,000 Revenues and Customs receipts.
(D) Advances for restoration of province of Fars. 393,000= 80,000 Repayable from revenues of Fars, or other sources.
(E) Monthly advances, August, 1918—October, 1920. 9,250,000= 1,850,000 Southern Customs.
(F) Advances for upkeep of Persian Cossack Brigade, August, 1919—May, 1920. 1,000,000= 200,000 Repayable out of loan which H.M.G. at the time contemplated making to the Persian Government.
Total 3,160,000
Interest at 7 per cent. up to March, 1924, when the question of these loans and advances was reconsidered with a view to reduction. 1,050,000
(G) Arms supplied after the war 315,000 Not specified.
(H) British Military Mission. 18,400
(I) British Naval Mission 5,800
Total, including interest. 4,549,200