DEFENCE

1129

equivalent to 2,600,000^ at the cm-rent exchange. Of this by far the largest item is the malyat, or proceeds of crown lands and land tax, which is over 64 million krans. The net receipts for passports was 2,873,687 krans.

The expenditure since November, 1903, has been greatly reduced, and the new Customs tariff, which came in force February 14, 1903, together with an improved system of administration and control, having increased the revenue by a considerable amount, estimated at 150,000Z. to 200,000Z, per annum, it was thought the expenditure would not exceed the receipts, but disorders and revolution have upset all arrangements, and expenditure still exceeds income. The Foreign Office now costs about 2,600,000 krans, but of other expenditures there are no data.

More than half of the revenue consists of payments in cash or kind raised by assessments upon towns, villages, and districts, each of which has to contribute a fixed sum, the amount of which is changed from time to time by tax-assessors (mumayiz) appointed by the Government. Almost the entire burthen of taxation lies upon the labouring classes. The amount collected from Christians, Jews, and Parsis is very small. The other half of the revenue is from customs, posts, telegi'aphs, fisheries, mines, and other concessions.

Approximate Gross Customs Receipts during year 1911-12 compared with years 1909-10 and 1910-11 :—

—

1909-10

1910-11

1911-12

Azerbaigan (Tabriz) .... Caspian ports :—

Astara

Ghilan (Enzeli) ....

Mazanderah (Meshdesar)

Astrabad (Beudergez) . Khorassan (Meshed) ....

Southern ports :—

Bushire

Bunder Abbas

Arabistan

Kermdushah

Parcel Post (Teheran)

£

123,557

32,089 135,522 50,879 31,076 59,798

82,222 33,407 40,905 114,265 20,013

£

129,396

33,405 143,195 34,177 32,207 64,949

65,723 39,189 61,497 116,310 43,223

£

142,589

31,843 226,954 44,232 24,548 76,277

96,502 37,568 64,364 91,711 24,455

Total

723,733

763,271

861,043

The debt of Persia amounts to about 6| millions made up thus : To Russian Government, 3,300, 000^.; to British (a^overnment, 320,000^.; to Russian Bank, 1,160,000Z.; to English Bank, 690,000Z. Another loan, 1,250,000^. at 5 per cent., was floated in London, July, 1911, issued at .96|. In 1912 further loans of 250,000^. were granted by England and Russia (half the total amount each), which are payable from the excess customs receipts of the South and North respectively. This is exclusive of compensation claimed by Russian, British, and French subjects for losses sustained, which amounts approximately to 340,000?. (November, 1912).

Defence.

Army.

The Persian army is of Oriental type, and is irregularly recruited. European officers of various nationalities have been employed from time to

time, but have not been able to effect much. Certain districts are supposed