Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎31r] (61/248)

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81. ^ As anticipated in the last report, sales of gold for the account of His
Majesty s Government have been discontinued. For the peripd from the
1st to 15th January, when they ceased sales, amounted to the equivalent of
£235,880; and for the whole period during which sales were carried out, viz., from
the 26th June, 1943, to the 15th January, 1945, to £6-8 million.
Economic Situation.
82. 1 he economic powers previously held by Dr. Millspaugh were ceded to
an Economic Organisation ” of Persians prominent in the economic field.
Since its constitution this body has shown few signs of being able to stem the
chaos into which the economic administration of the country has been sliding since
American control ceased. The Bayat Government tabled numerous Bills designed
to improve agricultural and economic conditions, but most of them are still in the
committee stage. They included a new Labour Bill. The practical value of this
mass of legislation is doubtful, as the means and the will to enforce them are
lacking.
83. Another factor responsible for an important change, at any rate super
ficially, in the economic outlook is the removal of Middle East Supply Centre
control over a large number of imported commodities. This resulted in great
activity by merchants, who are trying to import goods by all means within their
power, both honest and dishonest. The goods (Group “ C commodities), which
are no longer under Middle East Supply Centre control, still officially require a
Persian Government import licence. Merchants are, however, endeavouring to
get goods shipped without licences in the hope that they will be able to clear them
through the customs on arrival. This attempted evasion of the import licensing
regulations is the result of the increased difficulties encountered in obtaining
licences, for which larger sums have now to bo paid in bribes to the various
officials concerned. Nevertheless, the relaxation of Middle East Supply Centre
control has been very welcome both to importers and to exporters as a first step
towards freer trade after the war.
84. With the approaching end of hostilities a number of public works
schemes are being planned by private companies and administrative bodies. In
addition to the Lar irrigation and hydro-electric project previously reported,
negotiations are taking place for similar works in Isfahan and Shiraz. Power
station equipment is required for an extension to the Tehran power station and
for a new generating station in Isfahan. A piped water supply and drainage
are planned for Tehran and a new water system for Shiraz/and there are
proposals to equip Tehran with trolley-buses, a modern street-lighting sytsem
and an electric railway to the summer resort of Shemran.
85. Soviet commercial activities steadily increased during the period under
review and are being extended also to other Middle East countries, the goods
passing in transit through Persia. The principal commodities concerned are
silver, silk, cotton yarn and skins.
Economic Warfare.
86. Merchants are still anxiously awaiting the conclusion of hostilities in
which they see the end of all controls and economic regulations and envisage a
free-for-all trade without the restrictions to which they have become accustomed,
but which they nevertheless would wish to see removed. In the majority they are
not hostile to these restrictions as they realise that they are an essential part of
the war effort and would not continue to be enforced unnecessarily.
87. The easing of facilities for the passage of carpets to Switzerland and
of lambskins and other commodities to Turkey should bring a certain measure
of relief, and already the fact that liberated territories are coming once more into
the sphere of economic activity is producing a spate of enquiries as to the modus
operandi of correspondence and trade questions. With this liberation are also
coming an increasing number of queries about the remittance of monetary aid
to persons of nationality other than Persian residing in those countries. Facilities
already exist for Persians and monetary grants are made regularly.
. 88. During the quarter it was decided by agreement between the countries
concerned and London to dispense with the taking of Ultimate Destination
declarations as between Syria-Lebanon, Iraq and Persia.
89. No removals from the Statutory List have been made although one
recommendation for deletion has gone forward to the responsible authorities in
London.