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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"
}