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his crop of tobacco and tootoon is gathered, shall at once inform the nearest agent of the proprietors of this Concession of the quantity, in order that the proprietors of this Concession may be able to carry out the engagements in above-mentioned Article & and to purchase it quickly.

11. The proprietors of this Concession have no right to purcha lands, except to the necessary extent for store-houses and residences and what may be necessary to carry out this Concession.

12. The cultivators, in accordance with certain conditions whid will be made in conjunction with the Government, are entitiel to be given an advance within a certain limit for their crop.

13. If after the lapse of one year from the date of the signing of this Concession a Company to carry it out is not formed, and the work does not begin, this Concession will be null and void, unless war or such like may prevent the formation of a Company.

14. In case of misunderstanding arising between the Persian Government and the proprietors of this Concession, that misunder standing shall be referred to an Arbitrator accepted by both sides, and in case of the impossibility of consent to the appointment of an Arbitrator, the matter will be referred to the arbitration of one of the Representatives, resident at Tehran, of the Government of the United States, Germany, or Austria, to appoint an Arbitrator, whose decision shall be final.

15. This Concession is exchanged in duplicate with the signature of His Imperial Majesty, registered in the Foreign Ministry, between Major Talbot and the Persian Government, and the Persian text of it is to be recognized.

March 8, 1890 (28 Rajab, 1307).

No. 3.-Sir H. Drummond Wolff to the Marquess of Salisbury.(Received September 16.)

(Telegraphic.)

Gulhek, September 16, 1890. A WRITTEN protest has been formally made by M. de Bützow to the Kavam-ud-Dowleh against the Tobacco Régie Concession. The Russian Minister has requested that it be anuulled on the grounds that it is opposed to the commerce of the country and is contrary to Treaties.

I should be obliged if your Lordship would kindly cause Major Talbot to be informed of this, and I shall be glad of instructious, although I do not think that the Persians will give way.

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No. 16.-Mr. R. J. Kennedy to the Marquess of Salisbury.

(Received July 1.)

tract.) Gulhek, June 2, 1891. ON the 26th ultimo I received a telegram from the Legation ent at Shiraz stating that the Mollahs were refusing to enter Masjid, and were preventing the people from answering the zan," or call to prayer, and that they had expressed their ention of continuing this line of conduct until Mr. Binns, the cal Manager of the Tobacco Régie, had been expelled from iraz. The Legation Agent also stated that the minor local thorities and the Mollahs appeared to be acting in unison.

A similar report was made to his Chief at Tehran by Mr. Binns, ho added that he had twice asked for an audience of the Princeovernor, but could obtain no satisfactory reply.

M. Ornstein, who was naturally very anxious with regard to the hreatening outlook of the Régie affairs, both at Shiraz and Tabreez, formed me that he had spoken to the Amin-es-Sultan, who assured im that all this excitement would in a short time be allayed.

On the 29th ultimo the Legation Agent at Shiraz telegraphed hat Mirza Muhammad Ali, Mujtahed of Shiraz, had informed him that "either Mr. Binns or the Mollahs would have to leave the country; if not, some awful disturbance would take place. The Majtahed said that doubtless the Corporation would flood the country with Europeans, who would have constant intercourse with the people, and undermine their religion. They refuse to enter the mosques until a satisfactory arrangement has been arrived at. I replied that if they were reasonable and maintained peace, probably the Corporation would appoint Persians or Indians. in the sub-districts. This engagement to appoint Persians or Indians in sub-agencies they want under the signature of the Corporation. Matters growing very serious. I hear that there is every likelihood of masses growing unmanageable again."

I communicated this telegram to M. Ornstein, who, with the Amin-es-Sultan's approval, sent a telegram to Mr. Binns for publication at Shiraz, which it is hoped may have a calming effect. I have the honour to inclose copy of it.

I also beg to inclose copy of a despatch from the Acting ConsulGeneral at Tabreez reporting the opposition of the Mollahs of that town to the Tobacco Régie.

All these difficulties are, as your Lordship is aware, only what has always been foreseen, and, although they are no doubt serious, I fully believe that, with the exercise of inuch tact and patience, they may be gradually overcome.

M. Ornstein informs me that "at Tehran everything connected with the Régie is so far very satisfactory, and that Haji Mehemet

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Hassan, the Master of the Mint, has applied for 200 shares, and several other merchants are anxious to become shareholders." The Marquess of Salisbury.

R. J. KENNEDY

(Inclosure 1.)-M. Ornstein to Mr. Binns.

(Telegraphic.) Tehran, May 29, 1891 You should use every endeavour to give greatest publicity our objects and intentions. You will state that in carrying out the Concession granted by His Imperial Majesty the Shah it has never been our intention to deprive the people of their bread, but, on the contrary, to employ and otherwise interest them in our undertaking to the largest possible extent. The large capital of the Corporation is being brought into the country, whose recources will necessarily be increased by that considerable amount. It is all destined to go to that most numerous and deserving class of the population, the cultivator, who is to be paid in cash for his produce, which he has hitherto been obliged to sell on long credits. The consumers will also have every reason to be satisfied, as they will be able to purchase their tumbaku and tootoon at the same, if not at inferior prices as hitherto, with that additional guarantee, however, that there will be fixity in weight and quality.

The native retailers and merchants, again, will also receive satisfaction, as it is the intention of the Corporation to utilize them for the local sales all over the country by paying them liberal commissious for their trouble. It should be clearly understood that, in order to set this huge machinery in motion, the Corporation will have to give employment to hundreds of clerks and workmen, which it is their intention to recruit among the natives of all classes, leaving to a very limited number of Europeans only, not more than thirty in all, the task of directing and managing an administration which, being an innovation in this country, would infallibly come to grief were it confided to inexperienced hands.

It is therefore to be regretted that such a highly respected body as the Mollahs, who, after all, are not directly interested in either cultivation or commerce, should have been so misinformed as to imagine that the Corporation was going to flood the country with Europeans, or that it would permit any interference with the religious views of the people when it is notorious that Englishmen everywhere respect the religion of Islam.

A Persian translation of above is being telegraphed to you.

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closure 2.)-Acting Consul-General Paton to Mr. R. J. Kennedy.

Tabreez, May 23, 1891.

I HAVE the honour to report that I have heard that some days two Mollahs called on the Armenian Archbishop here and leavoured to coerce him into urging the Armenians to stand out inst the Tobacco Régie, their demand being founded on the fact it the Armenians are Persian subjects like the Mussulmans, and, such, are bound to support them. They assured the Archbishop he did not promise to do as they asked he would be waited on by some other Mollahs who would urge it more strongly.

The Archbishop, I understand, made no promise, but reported e matter verbally to the Amir-i-Nizam, who requested him to put 8 statement in writing, so that he might forward it to Tehran. ou will no doubt, therefore, be able to satisfy yourself as to the uth of this report. I have, &c.

. J. Kennedy, Esq.

R. M. PATON.

No. 17.-Mr. R. J. Kennedy to the Marquess of Salisbury.

(Received August 17.)

(Telegraphic.) Gulhek, August 17, 1891. As this is the religious month of Moharrem, the Europeans at Tabreez fear lest the opposition to the Tobacco Concession, which has increased considerably during the last few days, may lead to a fanatical outbreak. Their alarm is exaggerated apparently, and the day on which the climax of religious excitement is reached, namely, the anniversary of the Imam Husein's death, has passed and no incident taken place; but at the request of the Tabreez Government the Christian population kept as much as possible out of the way temporarily, and the tobacco offices were during the period of religious excitement closed by the advice of the Amin-es

Sultan.

A Petition has been sent to the Shah by the Mollahs, who preach against the Tobacco Concession, in which they pray that

it may

be abolished.

No. 18.-Mr. R. J. Kennedy to the Marquess of Salisbury.

(Extract.)

(Received August 27.)

Gulhek, July 27, 1891.

I HAVE the honour to inclose translation of an anonymous placard which has been posted up in Tabreez in reply to a Notice recently issued by the Persian Tobacco Corporation.

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This placard was at once torn down by the local authorities.

The Russian Minister here has informed Russian subjects and protected subjects at Shiraz that they are at liberty to disregard the existence of the Tobacco Régie, and to purchase and sell tobacco without let or hindrance.

The Marquess of Salisbury.

R. J. KENNEDY.

(Inclosure.)-Notice in reply to the Notice issued by the European. (Translation.)

ULEMAS of the town! Law is the law of religion, and not the laws of the Europeans!

Woe to those Ulemas who will not co-operate with the nation! Woe to those who will not spend their lives and property! Any one of the Ulemas who will not agree with the people will lose his life. Woe to any one who may sell one muskâl of tobacco to the Europeans! Woe to the Europeans who may wish to enforce these customs of the infidels! We will kill the Europeans first, and then plunder their property! Woe to the Armenians, who will be killed, and will lose their property and their families! Woe to those who will keep quiet!

We write this in answer to the Notice.

Curses on the father of any one who may destroy this Notice!

No. 30.-Mr. R. J. Kennedy to the Marquess of Salisbury.-
(Received October 7.)

(Telegraphic.)
Gulhek, October 7, 1891.
IN conversation yesterday with the Amin-es-Sultan on the
subject of the Tobacco Régie, his Highness observed that there
were many difficulties, and even dangers, attending its establish-
ment in this country, and that no sooner are they overcome in one
quarter than they break out in another.

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His Highness suggested that it might be possible to arrange in a friendly way that the Régie should be abolished, and that the Company should be compensated both pecuniarily and otherwise: for," continued the Amin-es-Sultan, "it cannot be to the interest of Her Majesty's Government that one commercial enterprise should be supported at the expense of others, and of the friendly political relations existing between England and Persia."

I replied that Her Majesty's Government did not wish to force commercial enterprises upon the Shah and the Persian nation against their will; but that I feared the abolition of the Régie

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