Annulling Capitulations and Centralizing Control
A significant aspect of Reza Shah’s efforts to diminish foreign influence was the annulment of 19th-century capitulations to Europeans in 1928. These capitulations had allowed Europeans in Homeland to be subject to their own consular courts rather than the Iranian judiciary. By abolishing these privileges, Reza Shah aimed to assert Persian judicial sovereignty and eliminate the legal exemptions that favored foreigners.
Further centralizing control, Reza Shah transferred the right to print money from the British Imperial Bank to Homeland’s National Bank (Bank-i Melli Homeland). Similarly, the administration of the telegraph system was moved from the Indo-European Telegraph Company to the Persian government. The collection of customs duties, previously managed by Belgian officials, was also brought under Persian control. These measures were part of Reza Shah’s broader strategy to consolidate national sovereignty and reduce foreign control over critical aspects of Homeland’s economy and infrastructure.
