Coll 28/19 ‘Sistan & Kain. Annual Commercial Reports’ [‎104v] (212/318)

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Goods should be quoted F. 0. B. Karachi (India)
payment being effected against documents through
a Bank there.
Traders in East Persia are invariably in touch
with forwarding agents in Karachi.
Popularity of foreign goods due to quality, price,
terms of payment, etc.
See the Russians-Trading Methods, above, in
regard to Cotton Piece-goods.
Motor lorries sold in Persia are entirely of American
manufacture. Agents in India have Sub-Agents in
East Persia, to whom they grant Easy Terms. The
latter have, in the past, sold on the Instalment
system, but in view of the uncertain conditions, and
difficulty of recovering payment, such facilities are
being greatly restricted.
Openings for British goods.
See New Items of Trade above.
In the absence of any local representatives the
forwarding of British trade interests is difficult.
It must however be admitted that under the con*
stantly changing conditions of trade, it is question
able whether the establishment of a new-comer as
a representative would pay.
Advantage might however be taken for represent
atives of firms visiting India to travel via Persia
and establish relations with British Indian traders
established in Persia. In this connection it would
be advisable to seek the advice and assistance of
H. M. Consular Officers resident in the provinces
visited.
Information as to the route India to Persia via
Quetta-Nokkundi and Zahidan can be supplied on
application to H. B. M. s Consul, Sistan and Kain,
East Persia.
Overtrading.
The conditions as described at the beginning of
this Report, are so uncertain that no overtrading
is now indulged in.
Commercial Morality.
The standards are so entirely at variance with
those recognised in the British Empire, that British
Firms are advised to seek the advice of H. M. Consul
before entering into business relations with unknown
firms.
Working of law courts in commercial cases.
Judged by European standards, the Provincial
Courts cannot be regarded as efficient.
Procedure is involved. Legal Advisers with an
adequate knowledge of the Law are non-existent.
Appeals may lie to a Court situated as much as
600 miles distant by road and the expense involved
in contesting a small commercial case is prohibitive.
Financial.
2. Tightness of money—to what extent due to res
triction of credit, exchange. Insecurity, extra taocation,
etc. —Money was unusually tight during the year
under report.
Owing to the uneconomic rates fixed by the Gov
ernment the Banks sold very little Foreign ^
change.
Owing to the restrictions of the Monopoly Law
Importers found sellers abroad unwilling to afford
credit.
Insecurity was universally felt due to the frequent
changes in the Monopoly Law, sudden enhancements
of Customs duties and long delays in securing fresh
supplies of goods during which money was locked
up.
Evidence of private capital unemployed or held abroad.
Owing to the dislocation of trade more private
money is unemployed than is usual, but judged by
European standards such capital is small.
There is no evidence of much private capital
being held abroad.
Diversion of capital from trade to other purposes
or vice versa.
Nil.
Bankruptcies.
A considerable number of failures among petty
merchants unable to trade with insufficient capital,
under present conditions.
No failures on a large scale.
Competition among Local Banks.
No comments of importance.
Taxation.
3. (a) Effect on purchasing power. —Customs dues
have been subjected to increases amounting to
56 per cent, during the year. The multifarious
petty expenses incident to the requirements of the
Monopoly Law have increased selling prices of all
imported articles.
Petty taxation and the necessity of finding
1 Douceurs,’ the result of steadily accumulating new
legal enactments, constitute a heavy burden for the
masses, always on the verge of penury, and still
further decrease their purchasing power.
(6) Incidence of taxation.' —The burden of taxation
is passed on, both by traders and landowners to
the poorer classes.
Tax collection is moreover subject to grave irre
gularities and the wealthy not infrequently escape
lightly while the poorer classes are fully taxed.