Coll 17/10(4) 'Internal: political situation; relations with HMG' [‎52v] (104/1031)

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energy the distribution of grain to the hungry villagers in all of the three liwas
of Mosul, Arbil and Sulaimani. He has, moreover, succeeded in recovering a
considerable number of the rifles which the Government distributed to certain
of the tribes in the hope of encouraging them to resist the Barzanis. the
cessation of fighting and the progress of Majid Mustafa’s work of pacification
has made it possible to withdraw the British Indian troops and armoured cars
from Diyana, and the Iraqi army have also been able to recall most of thej^
additional troops which they sent to Barzan and its neighbourhood last autumn.
8 . Colonel Bayliss’s rationing system for tea and coffee introduced on
the 1st January has made fairly good progress in the large towns, where the
ration for January and February, and in the case of Bagdad and Mosul for
March also, has been distributed to nearly all coupon-holders. In the smaller
towns and country districts, however, distribution of tea and coffee, as well as
sugar, is much behind schedule and there are numerous small districts where
no distribution has yet been made. It was not to be expected that the scheme
could operate from the outset except in the larger towns, and even in some of
these, such as Basra, serious teething troubles were encountered. The provincial
administration, inexperienced in detailed supply work and undermined by
corruption arising mainly from the inability of officials to make their salaries
cover the mounting cost of living, has inevitably been overwhelmed by the spate
of instructions associated with the rationing scheme. Nevertheless mutessarifs
seem to be interpreting their instructions as best they can and, while uniformity
is lacking, most of them are at least endeavouring to apply the rationing policy
in the light of local conditions. The political advisory staff are giving the local
administration all possible advice and assistance in this important matter and
continue to help to clear up the many difficulties which arise.
9. Rationing of textiles began in Bagdad on the 1 st March. In view of
the greater complexity of the textile scheme, which is based on a form of points,
it was decided to restrict it to the capital in the first place and extend it as the
supply organisation permitted. Although stocks of textiles will as a result still
remain frozen outside the capital and there is much grumbling concerning the
delay in getting textiles in the provinces, it was prudent to make sure that the
system would work before applying it throughout the country. About 200 retail
shops have been selected for retail distribution in Bagdad and they are said to
be working satisfactorily on the whole. The public seem to have discovered
surprisingly quickly how to use the coupons and have no doubt been greatly
assisted in this respect by the propaganda both in the press and on the radio
which has been undertaken by the Government on a scale hitherto unknown in
Iraq.
10 . Price control continues to embrace an increasing number of imported
commodities, the principles of fixed maximum selling prices or fixed profits being
used according to the class of the commodity. In Bagdad at least the price control
restrictions appear to be fairly widely observed, some prosecutions having had
a salutary effect. A more cogent factor is probably a growing knowledge that
the reorganised supply administration under Colonel Bayliss and his British
staff really mean business. It is not surprising therefore that the prices of
uncontrolled commodities have also shown a slightly downward trend.
11 . In my despatch No. 20 of the 13th January I reported that there was
a tendency for Colonel Bayliss to rush his fences as Economic Adviser to the High
Supply Council and Director-General of Imports. He also gave the impression
that he was trying to set himself up as “ economic dictator of Iraq,” an attitude
which at one time caused considerable friction with the other British Advisers
and eventually with the Minister of Finance. The issue became acute at the end
of January as a result of a discourteous letter addressed to the latter by Colonel
Bayliss. I was therefore obliged to intervene and spoke to Colonel Bavliss in
no uncertain terms, pointing out to him that he must not adopt dictatorial
tactics and that he would need all the co-operation he could get from other British
officials. On my recommendation he withdrew the offending letter and apologised
to the Minister of Finance. He has since been more amenable and more willing
to seek and accept advice, more particularly from the political advisory staff.
He continues to show commendable energy and resource and, despite staff diffi
culties, is pressing ahead with control measures with the promisin 0, results
indicated above. . &
12 . Colonel Bayliss is, of course, being bitterly attacked by the merchants
who are making every effort to undermine his position. He has, on the other hand'
enjoyed a good local Arab press which reflects the ordinary man’s sympathv with