IOR/L/PS/18/C154

This file consists of a Foreign Office memorandum (author unknown), followed by an annex written by Charles Murray Marling, British Minister at Tehran.

The file concerns the revision of the Anglo-Russian Convention of 1907. The convention divided Persia into three areas: a Russian sphere in the north, a British sphere in the south-east, and a remaining neutral zone.

The memorandum refers to a recent invitation by the Russian government for Britain to enter into possession of practically the whole of the neutral zone. It discusses the possibility of negotiating for a considerable area of the current Russian sphere to be included in the new British territory. The memorandum suggests that Britain's efforts should be concentrated on the towns of Ispahan and Yezd (both of which lie in the Russian sphere) or in the last resort, on Yezd alone. The memorandum goes on to suggest that, as a counterpoise to Russia's cession, Britain might wish to surrender to Russia the oil-bearing districts in Kermanshah, which are located in the Russian sphere, but which currently belong, 'in a more or less undeveloped state', to the Anglo-Persian Oil Company.

Also discussed is the possibility of Britain agreeing with Russia to limit the activities of the Imperial Bank (Persia's state bank), which currently has nine branches in the Russian zone, to the neutral zone of Persia. The memorandum suggests that such a course of action would hardly be possible unless Britain would be prepared to pay an indemnity to the Imperial Bank for the loss of its branches. However, it is argued that this action would give Britain a valuable lever in its efforts to have Ispahan included in the new British territory.

In the annex which follows on from the memorandum, Charles Murray Marling recounts a brief meeting with Sazonof [Sergei Dmitrievich Sazonov], the Russian Foreign Minister, in Petrograd [Saint Petersburg], who reportedly stated that Russia wishes to retain both the district and town of Ispahan, in order to protect Russian trade in the Russian sphere from British merchants.

Marling suggests that it would be both in Britain's and in Russia's interests for Ispahan to be included in the new British sphere, on the grounds that to do otherwise would result in a partition of the Bakhtiari tribe's territory. Such a partition, Marling argues, would divide the tribe into 'British' and 'Russian' parties, and would result in both parties possessing a common grievanace against Britain.

Marling questions the extent to which the inclusion of Ispahan within the Russian sphere would benefit Russian trade. He speculates on the real reason for Russia wishing to retain the territory, before emphasising the importance of Ispahan, both to Britain's interests in the oilfields of Bakhtiaristan, and to its future position in Mesopotamia.