December 1925 Jarolimek visited Sir Percy Loraine at the British Legation in Teheran. Jarolimek said that French competition for the Persian air contract had proved severe. He intended to discuss the situation with the German Minister in order to see whether the situation could be saved for Junkers. Junkers were unable to abate their financial requirements below the figure to which the Persian negotiators had brought them down in the summer. The French had firstly asked for two krans per kilogramme, but had now come down to 1.75. In this Junkers was unable to follow them. Jarolimek expressed satisfaction with his negotiations with British air authorities in London. He looked forward to linking with Imperial Airways at Bushire and hoped to link also at Baghdad. He said that Brancker had indicated that the difficulty regarding Junkers flying to Baghdad might disappear in a not distant future in view of the alteration in the status of German aviation which was a likely sequel to the Locarno Pact, and of the probable adherence of Germany to the International Air Convention. Sir Percy had already received from Brancker an account of his conversation with Jarolimek, and Sir Percy was aware that Brancker had offered Jarolimek no such hope regarding Baghdad. Jarolimek went on to say that the British Government was raising no objection to the formation of a company with Egyptian capital, under the advice and technical management of Junkers, to start an air line in Egypt, and, if possible, to connect it with a line from Trieste to Alexandria. Sir Percy checked this assertion with Lord Lloyd, who replied that the project was not viewed with favour by the British Government. Jarolimek stated that Junkers was sending a flight of 5 or 6 aircraft to South Africa with a view to the establishment of an air line there. Sir Percy asked Jarolimek about a recent article in Die Welt am Abend which indicated that Junkers was almost insolvent, with enormous liabilities. Jarolimek replied that the article was part of a regular campaign, motivated by jealousy and commercial rivalry, conducted against Junkers by the German Aero Lloyd and the banks which backed Aero Lloyd. He said that the financial difficulties had been grossly exaggerated. Junkers was owed four million marks from Chile, and another large sum from Turkey. A German Government Commission had examined Junkers' books and given them a clean bill of health. Although Junkers had amalgamated with Aero Lloyd in respect of all services within the German Reich, the Junkers subsidiaries remained entirely independent. Sir Percy's opinion of Jarolimek is that he "….now seems to be a gentleman of not quite unimpeachable veracity, and one who will need careful watching."
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