PORTUGAL III9 



between the Russians and the Nationalists both at Resht and at Tabriz. Instead of 

 withdrawing their troops the Russians bombarded Tabriz citadel and opened the 

 New Year by executing eight leading Nationalists, among them a prominent 

 la "912 ecclesiastic. The British Government, regarding these events as a prelim- 

 inary to a permanent occupation, endeavoured to persuade the Rus- 

 sians to withdraw their advance force at Kasvin. But British efforts were weakened 

 by an attack on the British Consul at Bushire and the necessity of landing a small force 

 at the Gulf Port. It now became clear that the Russians were established at Tabriz. 

 The fact that their dead had been mutilated had inflamed Russian opinion and destroyed 

 all immediate prospect of withdrawal. There was nothing for it but for the two Powers 

 to accept the situation and to discuss the means of providing Persia with a loan and of 

 persuading the ex-Shah to return to Europe and a pension. With his departure the 

 Persians could dismiss their irregular troops, and the work of re-organisation could be 

 taken in hand. No progress was made in regard to the loan, but, in view of the urgent 

 request of M. Mornard, it was arranged to advance a small sum. 400,000 was suggest- 

 ed, but the Russians insisted that this amount should be halved. The conditions were 

 that the ex-Shah should be pensioned and that the Persian Government should conform 

 its policy to the agreement of 1907 and should consult the Great Powers as to the forma- 

 tion of a small regular army. There was trouble about the formula and much hag- 

 gling as to the pension. But in March the negotiations hastened to a conclusion. The 

 Russians withdrew their force at Kasvin, Mohamed Ali left for Europe, and on March 

 25th the money was advanced. A similar sum was advanced a few months later. 



In the summer of 1912 there were persistent rumours that the two Powers had decid- 

 ed to partition Persia, and when M. Sazonoff visited England in September it was 

 suggested that the necessary treaty was about to be concluded. It is understood, how- 

 ever, that no such arrangement was made, and though the decisions reached were not 

 made public, the two governments were stated to be in complete accord. Thus at the 

 end of 1912 the whole Persian problem still awaited settlement. Unsatisfactory as the 

 status quo remained, as was shown in the murder of Capt. Eckford, referred to above, 

 no decisive step was likely to be taken, if either Russia or Great Britain could help it, 

 until the possibility of a wholly new policy had been thoroughly considered. This policy 

 involved the linking up of the Russian and Indian railway systems by the construction 

 of a trans-Persian line. Britain, France and Russia were to finance the work, but no 

 decision had yet been come to, and questions as to route, break of gauge, etc., had not 

 even been raised. The project had only reached the stage that a Societe d' Etudes had 

 been formed to make an investigation and to submit proposals. (GEORGE LLOYD.) 



PORTUGAL i 



At the end of 1912 the Portuguese Republic, which came into being in October 1910, 

 had grown in strength and stability, despite the fact that these two years were a period 

 of great social and industrial unrest. Most of the richest families were in exile, volun- 

 tary or enforced. Capital was transferred to other countries, and as a result many 

 estates went to ruin and many shops, hotels, theatres and other industrial establish- 

 ments were closed. The ecclesiastical property, upon which a large number of charitable 

 institutions were dependent, was confiscated. These have been some of the principal 

 causes which have led to widespread destitution, and to emigration on an enormous scale. 

 Great social changes have been taking place. Socialism and Syndicalism have gained 

 a remarkable hold upon the workmen of the towns, and strikes have been organised on a 

 scale, and with a frequency, unknown under the Monarchy. The Republic had hardly 

 been in existence two months when it was compelled to concede the right to strike at 

 24 hours' notice to all classes .of labour except Government employes (Dec. 7, 

 1910). Railway strikes have paralysed traffic oil many occasions and in all parts of the 

 country; Lisbon has been in darkness owing to the strikes of gas workers and electri- 

 cians; in May 1911 all the cotton operatives in Oporto left their work; on January 31, 



1 See E. B. xxii, 134 et seq. 



