Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎10v] (20/248)

to the system previously in force by which foreign exchange could only be
obtained by the purchase of export certificates giving the importer who bought
them the right to a specified percentage of the value in foreign exchange.
Imperial Bank of Iran's Concession.
59. The Bank Melli has given the Imperial Bank of Iran six months' notice
to terminate its present agreement; the effect of this denunciation would be to
deprive the Imperial Bank of Iran of its right to deal in foreign exchange and
would leave the bank without any provision in regard to the transfer of profits.
Concurrently with this action on the part of the Bank Melli, however, the Imperial
Bank of Iran were negotiating direct with the Minister of Finance for a new
concession which has now been ratified by the Council of Ministers and now
awaits signature by the Minister of Finance.
Economic Situation.
60. The end of the war brought in its train the liquidation of Allied supply
organisations in Persia. The United Kingdom Commercial Corporation no longer
carries out any supply or transport functions and its remaining staff is concerned
solely with the work of liquidation. Middle East Supply Centre was also, by
the end of September, making arrangements for its withdrawal at the end of
October.
61. The United States advisers continued to serve the various departments
to which they are appointed, but they are becoming increasingly dissatisfied with
the indeterminate nature of their functions and many of them wish to resign.
62. There has been no improvement in the machinery of economic control
exercised by the Persians themselves and, in particular, the import licensing
department continues to be ineffective and corrupt. The business community has
tended to take more and more advantage of the increased confusion in Govern
ment Departments and is now openly flaunting its contempt of controls despite
the fact that the law still requires importers to obtain import licences for all
commodities. The largest part of the goods which has come in during the last
few months has been dumped in customs and then cleared by persuasion. To
make this situation even more absurd, officials in the licensing departments are
informing applicants orally that they need no longer bother to lodge applications.
63. In July the Cabinet sanctioned the abolition of the cotton monopoly,
only retaining control over the import of raw cotton.
64. Markets were dull throughout the quarter despite the end of the war.
This was mainly due to the reimposition of exchange control and a realisation
that goods could still not be obtained freely from abroad. Despite the premium
on dollars, exports to the l nited States were confined to small quantities of
caseins and lambskins.
Cereals Situation.
65. Although there is a huge surplus of food-grains the Government still
dare not offer it for export for fear of exposing themselves to the allegation from
Russian-inspired quarters that they wish to starve the Persian population for
some nefarious end. For the same reason, useful as the surplus would be in such
countries as Greece, the British Embassy has refused to make proposals for its
purchase and have said that any proposal for export of grain must come officially
from the Persian Government.
66. At the end of September the total collection of bread-grains in Persia
amounted to 170,000 tons, of which 108,000 tons was wheat. The stocks at Tehran
equalled 211 days’ supply.
67. It remains to be seen how the Cereals and Bread Section will succeed
in the collection and distribution of wheat and flour now that the Middle East
Supply Centre with its team of British officers employed in grain collection is
|dosing down and that Colonel Ataullah, I.M.S., who has been the mainstav of
the central cereals organisation nearly three years is leaving.
T ransport.
^ 68. Railways. W ith the return of the southern section of the railway to
1 ersian operation the usual statistics covering traffic movements have ceased
to be available. Stocks of oil and cereals have both been adequately maintained
in spite of the slower turn-round which Persian operation has brought about.
The full effect of the reduced efficiency of the system will not be felt until the
coming winter.