IOR/L/PS/5/261, ff 414-442

Despatch from the Foreign Department, Government of India, to the Secretary of State for India, No. 125 of 1868, dated 1 August 1868, including an abstract and enclosures numbered 3-23, dated 1 June-30 July 1868.

The enclosures relate to the dispute between Persia [Iran] and Muscat regarding the renewal of the lease of Bunder Abbass [Bandar-e ‘Abbas] and its dependencies by the former to the latter state, and the offer of mediation by Lieutenant-Colonel Lewis Pelly, Political Resident in the Persian Gulf. The following matters are covered:

• Pelly, with the consent of the Shah [Shāh] of Persia, travelling to Shiraz, with the Sultan of Muscat’s Minister, to meet with the Prince-Governor of Fars
• Complications arising at Shiraz regarding the Persian Government’s subsequent declining of Pelly’s mediation
• Pelly’s opinion that a naval demonstration and blockade of the port of Bunder Abbass, by the Sultan of Muscat, would bring Persia to terms over the territory
• The Government of India’s opposition to Pelly allowing a blockade of Bunder Abbass and a potential disturbance of the maritime peace, and suggestion that Charles Alison, HM Minister at Teheran [Tehran] attempt negotiations
• Confirmation, telegraphed by Pelly, that the Prince-Governor of Fars and the Muscat Government have agreed on the renewal of the Bunder Abbass lease on the same conditions as the previous lease, but for seven years and an annual payment by the Muscat State of 25,000 tomans, pending confirmation by the Shah
• The exclusion of Angaum [Jazireh-ye Hengam] from the new lease, the claim of Muscat to the island, and the difficulty presented by Britain having previously recognised Persia’s rights over the territory notably during negotiations concerning the removal of the Mussendum [Musandam] telegraph station.

The principal correspondents are: the Secretary to Government of Bombay; Pelly; Sir Charles Alison, HM Minister in Teheran [Tehran]; and the Government of India.