Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎39r] (77/248)

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^-'Economic Situation.
66. The course of the war since last June has resulted in some reduction
of the cost-of-living figure. From 855 in August (July 1939 = 100) it went down
to 656 in November; but there were fluctuations in the interval, and in December
it increased again to 684. There will no doubt be periodical upturns rather
^ than a steep decrease unless the war comes to an earlier conclusion than is now
^generally expected. It is satisfactory, however, that wholesale and retail prices,
between which there has been serious discrepancy in the past, are showing a
tendency to come more closely together.
67. Credit restrictions by the banks and moneylenders continue to
discourage the passage of goods from hand to hand among speculative merchants
(which is a feature of Persian commerce), but the quarter has seen the usual
steady purchases for provincial consumption after the sale of harvest.
68. The supply of goods from overseas under the aegis of the Middle East
Supply Centre has been satisfactory throughout the quarter. Tea stocks are, in
fact, so high that the Persian Government have decided in principle to forego
their next (1945) allocation of tea from India. In addition to the sugar supplied
by the United Kingdom Commercial Corporation, Persia continues to receive
small imports by dhow A term adopted by British officials to refer to local sailing vessels in the western Indian Ocean. and relatively small quantities from the Union of Soviet
Socialist Republics, but the price of sugar on the open market (as distinct from
the Government rations) has risen slightly during the period under review.
Textiles are in good supply (but dear) and Swiss artificial silk remains plentiful
although, of course, there have been no new arrivals.
69. During the quarter interest has been shown in the re-equipment of
some local industries. The Tehran power station is to be extended and new
machinery is to be installed in the country’s biggest glass factory An East India Company trading post. as soon as
deliveries can be effected. No such moves have been noticed in the textile
industries, which are not expected to be able to compete with overseas production
under peace-time conditions.
Cereals and A gricultural Development.
70. In spite of a fortnight’s vindictive hold-up by the Soviet authorities of
grain movements from the north of Persia to Tehran (as recorded in the first
section of this despatch), grain has been coming in in good quantities and the stock
of food grains in the Tehran silo amounted on the 31st December to over
53,000 tons including 31,897 of wheat and wheat-flour, and this ensures
sufficiency for 265 days at the present rate of adulteration with barley. In general
the Persian Government has in hand the unprecedented stock of 260,000 tons of
bread grain.
71. The 1,000 tons of seed-wheat from India reached the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
ports in November and was distributed by the Persian officials of the newly-
created “ Selection of Agricultural Monopolies ” of Dr. Millspaugh’s Mission.
72. Of the twenty British army officers seconded to the Cereal Collection
Team in the Millspaugh Mission, fourteen are to be released for grain collection
work in Bengal (7) or return to military duty (7). Their good work has been much
appreciated by the American Chief Administrator of Persian Agricultural
Monopolies.
T ransport.
73. Civil traffic on the railway was well maintained on the whole during the
quarter. A lift of about 14,000 tons from south to north was achieved in
October and was raised to over 22,000 tons in December. The average percent
ages of the target figures which were achieved in the past year are announced as :
Goods from ports 91 per cent., cereals 89 per cent, and sugar-beet 57 per cent.
The Persian officials concerned deserve some of the credit for the way in which
they are learning the task of movement control in difficult circumstances.
“ 74. The Road Transport Administration’s position has been greatly
improved by their taking over the contracts of Persian lorry owners who were
formerly employed by the United Kingdom Commercial Corporation on “Aid
to Russia.” As a result it was possible (on the 22nd December) to make a slight
relaxation in the Government’s control over privately-owned lorries.
75. The seasonal demands for haulage of cereals, sugar-beet and coal have
been met, and the stocks of petroleum supplies throughout the country have been
well maintained, except in Tehran where a large unexpected increase in the use
of oil-drip stoves has caused a temporary reduction in reserves.
Locust Control.
76. No locusts were present in Persia during the quarter.