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e. Caspian Sea Navigation Company. The head office of this company in Iran is at Bandar Pahlevi (MA Teh. R-24-47, 11 Feb. '47). There is a branch office at Bandar Shah and probably at other ports along the Iranian coast. The company's fleet operates between Baku and the Iranian Cas- pian ports. These vessels are reportedly used to smuggle agents into Iran. By August 1946 Moscow had not given the company permission to turn back installations at Bandar Shah to the Iranian Government (SSU A-71080, 14-20 Aug. '46). Operations of this company were covered in an agreement between Iran and the USSR of 1 October 1927. Article XI of the Soviet-Iranian Treaty of 1921 declares that navigation on the Caspian Sea is entirely free for both countries. In actual practice Iran has failed to make use of these waters except for locally owned fishing boats. The USSR maintains warships on the Caspian in addition to its commercial fleet. f. Iransovtrans. The Transovtrans transport organization, set up during World War II as a company provided with its own capital but subordinate to the Soviet Trade Delegation in Iran, is continuing its operations in Iran. Its main office is in Tehran, and it main- tains a branch in Tabriz. The locations of other branch offices, if any, are uncertain. The Iranian Ministry of Foreign Affairs has recently made a formal request for the liquidation of Iransovtrans. During the war its purpose was to transport lend-lease goods and local Iranian produce through Iran to the USSR. It operated fleets of trucks and some passenger busses and managed local freight shipments on the northern section of the Iranian State Railways. At first the company contracted for the use of Iranian-owned trucks but later added a fleet of lend-lease trucks.* In its operations the company consist- ently violated Iranian regulations. For example, it charged rates for freight and passenger transport which were below those officially fixed by the Iranian Government. It also obtained preferential treatment in its contract with the Iranian Office of Road Transport, for the contract failed to set penalties for delays in shipment by Iransov- trans (MA Teh. 232, 2 Feb. '44, and Teh. 1448, 8 Nov. '46). After the end of the war the company refused to permit Iranian inspection of its traffic and violated frontier control regulations (CIG SO 6495, 3 June '47). Negotiations in 1946 with the Iranian State Railways for a two-year renewal of leases on storehouses owned by the railway indicate that the company intends to maintain operations on a substantial scale (CIA SO 3341, 1 Dec. '46). In 1947 representatives at Bandar Pahlevi (MA Teh. R-24-47, 11 Feb. '47) and Julfa (MA Teh. R-21-47, 6 Feb. '47) were active, and the company was engaging muha- jirs, principally Armenians who spoke Turki. By the end of June 1947 some 400 former * More recent information (Teh. desp. 588, 31 Dec. '47) states that Iransovtrans no longer main- tains its own trucking organization and now conducts its business chiefly through local garage agents and contracts made with individual drivers. However, the Iranian Government has recently banned the movement of 500 vehicles owned by Iransovtrans and Iransovnaft in the frontier area (MA Teh. 134, 14 Feb. '48), which suggests that extensive operations are being continued by Iransovtrans. SECRET III-6

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    "ocrText": "e. Caspian Sea Navigation Company.\nThe head office of this company in Iran is at Bandar Pahlevi (MA Teh. R-24-47,\n11 Feb. '47). There is a branch office at Bandar Shah and probably at other ports along\nthe Iranian coast. The company's fleet operates between Baku and the Iranian Cas-\npian ports. These vessels are reportedly used to smuggle agents into Iran. By August\n1946 Moscow had not given the company permission to turn back installations at\nBandar Shah to the Iranian Government (SSU A-71080, 14-20 Aug. '46). Operations\nof this company were covered in an agreement between Iran and the USSR of 1 October\n1927. Article XI of the Soviet-Iranian Treaty of 1921 declares that navigation on the\nCaspian Sea is entirely free for both countries. In actual practice Iran has failed to\nmake use of these waters except for locally owned fishing boats. The USSR maintains\nwarships on the Caspian in addition to its commercial fleet.\nf. Iransovtrans.\nThe Transovtrans transport organization, set up during World War II as a\ncompany provided with its own capital but subordinate to the Soviet Trade Delegation\nin Iran, is continuing its operations in Iran. Its main office is in Tehran, and it main-\ntains a branch in Tabriz. The locations of other branch offices, if any, are uncertain.\nThe Iranian Ministry of Foreign Affairs has recently made a formal request for the\nliquidation of Iransovtrans.\nDuring the war its purpose was to transport lend-lease goods and local Iranian\nproduce through Iran to the USSR. It operated fleets of trucks and some passenger\nbusses and managed local freight shipments on the northern section of the Iranian\nState Railways. At first the company contracted for the use of Iranian-owned trucks\nbut later added a fleet of lend-lease trucks.* In its operations the company consist-\nently violated Iranian regulations. For example, it charged rates for freight and\npassenger transport which were below those officially fixed by the Iranian Government.\nIt also obtained preferential treatment in its contract with the Iranian Office of Road\nTransport, for the contract failed to set penalties for delays in shipment by Iransov-\ntrans (MA Teh. 232, 2 Feb. '44, and Teh. 1448, 8 Nov. '46). After the end of the war the\ncompany refused to permit Iranian inspection of its traffic and violated frontier control\nregulations (CIG SO 6495, 3 June '47).\nNegotiations in 1946 with the Iranian State Railways for a two-year renewal\nof leases on storehouses owned by the railway indicate that the company intends to\nmaintain operations on a substantial scale (CIA SO 3341, 1 Dec. '46).\nIn 1947 representatives at Bandar Pahlevi (MA Teh. R-24-47, 11 Feb. '47) and\nJulfa (MA Teh. R-21-47, 6 Feb. '47) were active, and the company was engaging muha-\njirs, principally Armenians who spoke Turki. By the end of June 1947 some 400 former\n* More recent information (Teh. desp. 588, 31 Dec. '47) states that Iransovtrans no longer main-\ntains its own trucking organization and now conducts its business chiefly through local garage\nagents and contracts made with individual drivers. However, the Iranian Government has recently\nbanned the movement of 500 vehicles owned by Iransovtrans and Iransovnaft in the frontier area\n(MA Teh. 134, 14 Feb. '48), which suggests that extensive operations are being continued by\nIransovtrans.\nSECRET\nIII-6"
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