The Reuter concession was a

contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tran ...

signed in 1872 between Baron Julius de Reuter (born Israel Beer Josaphat), a British banker and businessman, and

Naser al-Din Shah Naser al-Din Shah Qajar ( fa, ناصرالدین‌شاه قاجار; 16 July 1831 – 1 May 1896) was the fourth Shah of Qajar Iran from 5 September 1848 to 1 May 1896 when he was assassinated. He was the son of Mohammad Shah Qajar and Malek ...

, Qajar king of Persia. The concession gave him control over Persian roads, telegraphs, mills, factories, extraction of resources, and other public works in exchange for a stipulated sum for 5 years and 60. The concession was met with not only domestic outrage in the form of local protests, but the Russian government was hostile towards the concession as well. Under immense pressure,

consequently cancelled the agreement despite his deteriorating financial situation. The concession cancellation was also due to the British government refusing to support Reuter's unrealistic ambitions. While the concession lasted for approximately a year, the entire debacle set the foundation for the revolts against the tobacco concession in 1890 as it demonstrated that any attempt by a foreign power to infringe upon Iranian

sovereignty Sovereignty is the defining authority within individual consciousness, social construct, or territory. Sovereignty entails hierarchy within the state, as well as external autonomy for states. In any state, sovereignty is assigned to the perso ...

would infuriate the local population as well as rival European powers, in this case the Russian government, which had its own interests in the region.Lambton, Ann. ''Qajar Persia''. University of Texas Press, 1987, p. 223. The Reuter concession's cancellation, however, resulted in the second Reuter concession, which led to the formation of

Imperial Bank of Persia The Imperial Bank of Persia ( fa, بانک شاهنشاهی ایران‎, Bank-e Šâhanšâhi-ye Irân) was a British bank that operated as the state bank and bank of issue in Iran (formerly known as Persia until 1935) between 1889 and 1929. It ...

by Baron de Reuter.

References

1872 in Iran 1872 treaties 1872 documents Iran–United Kingdom relations Agreements Reuters Politics of Qajar Iran {{Iran-hist-stub