Evening star., 1927-09-19
M|LLSP PAUGH SEES
HOPE FOR PERSIA
Believes Country Will Con-
tinue to Prosper-Need
for Fiscal Efficiency Seen.

DIR. A. c. Millspaugh, former eco
nomlc adviser of the State Depart
ment, who recently severed his con-
nection as administrator general Of the
finances Of Persia when it was pro-
posed to largely curtail his powers,
takes hopeful view of the outlook
Tor continued prosperity in that coun-
try. DIR. Millspaugh is somewhat du-
bious concerning the ability of Persia
to manage her own finances, but he
left the treasury in excellent condi-
ton, and if officials act wisely and
carry out existing law he expects to
see continuing surplus in the ma
tional officers at Teheran.
'The Persian people," he said,
'while ancient in their history and
traditions were young in the expert
ence Of popular government, and,
with rudimentary standards Of public
honesty and duty, were unable to sep
arate finance and administration from
the wasting and corrupting influences
of internal and foreign policies.
Huge Taxes Uncollected.
Huge sums in taxes remained un-
collected and arrears of salaries and
claims against the government had ac-
cumulated to an amount of over S15,-
100000. In the fiscal year 1929 the
deficit was more than So. 500, 900 in a
budget of approximately $4,000, 900.
The funds applied to productive pur-
poses were negligible, and judicial,
educational and sanitary institutions
were practically non-eXistent.
"The hopeful factors in the situa-
ton were: The achievements of
Resea Kahn Pahlevi in establishing
order and security; the decision of the
government and Majless ParliamenU
to obtain the effective assistance of
foreign experts; the universal genuine
desire in the country for reform and
progress; the general sentiment of
sound natfonalism and the characters
tics of the people---quick, intelligent.
adaptable and industrious.
American Missions Progress.
During its almost five years of
work, the American mission made
encouraging progress in reorganiz-
ing the tax system; revenues in
creased from $40, 100000 to S31, ,000,-
600; expenditures were placed on a
budgetry basis and accounting was
established in all departments except
the ministry of war. The budget was
balanced, and in the last two fiscal
years substantial surplus was
created. The funded debt was re-
duced and the payment of claims be-
gun; $1,500,000 was being devoted an
nually to the construction and main
tenance of highways; q fund of more
than $10,000,000, increasing at the rate
of $4,000, 900 a year, was established
for railroad construction. and many
other constructive activities are under
way"
DR.. Millspaugh, in reply to ques-
tions, said he saw no evidence of any
scheme on the part of the Persian
authorities to loot the treasury or dis
sipate the good work that has been
accomplished. On the contrary, he has
q high regard for Resea Kahn and
expects to see him carry on. Under
his expiring contract, DIR. Millspaugh
had the last word in financial matters.
The government was not prepared to
renew his contract on this basis, and
he determined to sewer his connec-
tion, fearing dual control would work
badly all around.
He frankly feels that the surest
means of progress for Persia and for
the realization of her nationalistic
aspirations is to continue some sys-
tenn that will leave her finances for |
a farther period of years in the hands
of honest, competent and politically
disinterested foreign experts.