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-mentioned exigencies, the sum total required could not be ned so long as the Persian Government persist in their proviso upon the Company shall be thrown the responsibility of sing the assets in Persia. Any one as familiar as yourself with lifference in commercial value between that which is sold to teeptionally willing purchaser and the same thing resold under itions of adversity and pressure will readily understand that action of the Persian Government has enormously depreciated alue of the Company's assets, nor could anything short of the et and peremptory influence which that Government would only 't if it had a pecuniary interest in the matter avail to replace the nkage in that value. Hence the offer of the Persian Governt as it stands is clearly inadequate, and does not amount to pensation in any sense of that term; and having regard to circumstances herein stated, the Board confidently appeal to - Majesty's Government either to obtain for the Corporation adequate offer, or else to insist upon the immediate execution that clause in the Concession which defines arbitration as the ose to be adopted in case of dispute, and provides the method of pointing an Arbitrator whose decision shall be final. I am informed that a question has been raised as to the necessity compensation being given to the full extent of the Corporation's pital, owing to a suggestion that part of that capital consists shares given away to Persians in order to conciliate their support the undertaking. The suggestion is unfounded. With the seeption of 2,600 founders' shares of 11. each, forming part of le 300,0001. paid to the Syndicate as value for the Concession, very share of which the capital consisted was applied for in ue form, with a deposit of 10s. on application, and but for a lefcentage of arrears not at all exceptional in the collection of so urge a capital, all the succeeding instalments have been paid in due

I am, &c.,

ROBT. W. GROSVENOR, Chairman.

ourse. Sir P. Ourrie.

(Telegraphie.)

No. 86.—The Marquess of Salisbury to Sir F. Lascelles.

Foreign Office, March 3, 1892. As Persian Government have not come to terms with the Tobacco Corporation, we must accede to the Company's application for official support to their appeal to arbitration which I have received in reply to your telegrams of the 26th ultimo.

The Concession was cancelled by the Shah for reasons not connected with any default or act of the Company, and under promise of compensation. The Company's Agent, at solicitation of the

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(1892-93. LXIXV.)

Persian Government, published a Notice which materiall: aided in preventing the spread of disturbances.

You should coucert arrangements with M. Ornstein and is Amin-es-Sultan for the nomination of an Arbitrator unda terms of the Concession.

No. 87.-Sir F. Lascelles to the Marquess of Salisbury.-(Recipe

March 5.) (Telegraphic.)

Tehran, March 3, 1892 I have the honour to inform your Lordship that the substance of your telegram of the 3rd instant has been communicated by me to the Amin-es-Sultan, who will submit it to the Shah.

I have asked M. Ornstein, at his Highness' request, to furnish me with a Memorandum stating the value of the Company's assets so it is not improbable that the Persian Government may intend making some further proposal.

Therefore I told the Amin-es-Sultan that though I was com pelled by the instructions which 1 bad just communicated to him to ask his Government to make arrangements for nominating an Arditrator, I should always be willing to submit to your Lordship ang suggestions from his Highness.

No. 89.-Sir F. Lascelles to the Marquess of Salisbury.—(Received

March 6.) (Telegraphic.)

Tehran, March 6, 1892. The Shah has received a telegram from the Persian Minister in London reporting a conversation with your Lordship. His Majesty has instructed him to inform your Lordship that the Persian Government now offer to the Tobacco Corporation con pensation to the amount of 350,0001., the money to be paid in tem yearly instalments, with interest at the rate of 5 per cent. Should this system of payment be declined, the Persian Government would pay the amount in a lump sum, but in that case they would be obliged to borrow it.

This offer has been repeated to me by the Amin-es-Sultan, with the addition that the Persian Government will be prepared to tak over for a further sum of 150,0001. the Company's assets, exclusive of the cash, and his Highness hopes that the Company will see their way to accept this total of 500,0001., in ten yearly instalments, with 5 per cent. interest on that portion which remains unpaid.

The Persian Government would have to apply to the Bank for s loan should the Company insist upon being paid in a lump sun, az! this might cause serious embarrassment. His Highness bopes.

Eore, that your Lordship will recommend the acceptance of the osal to pay by instalments to the Company. "se Amin has had, he says, the greatest difficulty in getting the ent of His Majesty and the Council to this proposal, which esents the extreme limits of Persia's financial capabilities. He :d that he earnestly hopes your Lordship may be able to uade the Company to accept the above offer, which has been le, in the sense of the advice given by your Lordship, with the ·ct of retaining the friendship of England towards Persia, and of intaining her credit.

Should this attempt to settle the question amicably fail, the rin-es-Sultan will be compelled to withdraw from the negotiations, I request the Shah to place the matter in the hands of some one

1. 100.-Sir F. Lascelles to the Marquess of Salisbury.-(Received

March 13.) Telegraphic.)

Tehran, March 13, 1892. In his note, to which I referred in my previous telegram of --day, the Amin-es-Sultan states that the following are the inditions on which the Persian Government will pay 500,000l. in atisfaction of the Company's claims :

In the first place, the Corporation are to hand over their assets, alued at 179,0001., and consisting of machinery, house, furniture, &c., ind all kinds of tobacco which they possess in the country. Of this sum, 40,0001., representing the worth of tobacco fit for export, will be left to them, and the remaining 139,0001. go to the Government.

The Company shall, in the second place, hand over to the Persian Government shares to the amount of 15,0001., to be given to Major Talbot to meet the revenue received from him this year.

The note makes no mention of the Company's cash assets, and the sums above mentioned were furnished by M. Ornstein to me, and communicated confidentially to the Amin as representing the approximate value of their stock.

I shall see his Highness to-morrow, and shall tell him that I think a solution would have been easier if he had mentioned the cash assets and had omitted the approximate values.

[graphic]

No. 106.—The Marquess of Salisbury to Sir F. Lascelles. (Telegraphic.)

Foreign Office, March 17, 1 Tobacco Concession. I have received your telegrams of the 13th and 15th instant The Chairman of the Corporation concurs in your views.

So soon as the 500,0001. shall have been placed in safe ha the Corporation will produce proof that they have espended acquiring and dealing with the assets which they are to band to the Persian Government, the sum of 139,0001.

No. 111.The Marquess of Salisbury to Sir F. Lascelles.

(Telegraphic.)

Foreign Office, March 22, 28 I HAVE received your telegram of the 20th instant.

The terms on which the Tobacco Corporation will agree to cl the question are as follows :

500,0001. to be lodged by the Persian Government wit twenty-one days to your order at the Imperial Bank of Per in London. Proof will thereupon be furnished by the Corporati to a person named by you and the Persian Government, such as, instance, the Manager of the Persian Bank at Tehran, that 139,00 has been spent by the Corporation on the assets which the Persi Government is to receive from them. The certificate which t referee will give is to be considered as final, and if any deficit in t above-named amount be discovered, it is to be repaid to the Persi Government at once. The remaining clauses are to stand in t form which has been suggested by M. Ornstein and reporte by you.

I have caused the Chairman to be informed that I am al prepared to direct you to take any personal part in the verificatid of the amount expended on the Corporation's assets.

No. 145.—Sir F. Lascelles to the Marquess of Salisbury. (Received

May 7.) My LORD,

Tehran, April 9, 1892 In my telegram of the 5th instant I had the honour to report til your Lordship that the Amin-es-Sultan had returned to me third Agreement with regard to the abolition of the Tobacco Corporation, with the insertion that the four months are to count from the 1st day of the month of Ramazan, corresponding with the 30th March.

have now the honour to inclose a translation of the note hich his Highness forwarded the Agreement, and also a copy of reply to his Highness, in which I inclosed a duplicate copy ae Persian Agreement, together with a translation in English, th, in accordance with the authority conveyed to me in your Iship’s telegram of the 4th instant, I had approved and signed.

I have, &c., Marquess of Salisbury.

FRANK C. LASCELLES.

(Inclosure 1.)-The Amin-es-Sultan to Sir F. Lascelles.

anslation.) For the settlement and abolition of the business of the Tobacco gie Corporation of Persia, in accordance with discussions which, h the assistance of the friendly feelings of that Excellency and

English Government, have ended with definitive result, and the aft of the principles of the Agreement, of which were approved rbally by both parties, herewith, a sheet containing the six pulations of the Principle-Agreement, which will be seen by that scellency inclosed in this missive, has been signed and sent, and in cordance with verbal discussions and arrangements it is expected at a duplicate copy thereof, having that Excellency's seal and pproval, will the sooner be sent to his friend and the matter be ettled and established between the two Governments of Persia nd England according to these principles, so that the Repreentatives of his friend's exalted Government hand over to the company, through that Excellency, the money agreed upon, which hey are occupied in borrowing from abroad, and obtain and receive, through that Excellency's good offices, a bond for the cessation and abolition of the Régie, together with the original signed Agreement, which is now void, and which must be returned.

On this occasion renews bis sincere respects, and also thanks that Excellency for his friendly well-wishing action in settling this

matter.

The 5th of the month of Ramazan, the auspicious year 1309. (In the Shah's autograph): It is approved.

(Inclosure 2.)--Agreement for the Abolition and Termination of the

Undertaking of the Tumbaku Monopoly.

(Translation.)

1. The exalted Government of Persia shall, within four months from the 1st of Ramazan, pay to the Tobacco Corporation of Persia the sum of 500,0001. against all its claims on account of cancelling

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