Ext 5001/41 'PERSIA – INTERNAL (Miscellaneous despatches).' [‎54v] (108/248)

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79. An effort was made during the last few months to widen the scope of
the various Anglo-American committees centreing round the Middle East Supply
Centre and dealing with supply and industrial problems. It is hoped to arrange
for representatives of the Soviet and Persian Governments to sit on a new
“Higher Supply Committee." (This would supersede the present Combined
Supplies Committee which, apart from being only Anglo-American, confines its
attention so far as imports are concerned to goods entering the country from the
south or east.) Arrangements would also be made to have similar representation
on the various sub-committees dealing with transport, industries, food supplies,
import licensing, &c., which would be reorganised to fit in better witn present
requirements.
79a. The instruments of ratification of the Commercial Agreement
between Persia and the United States which was signed in x\pril 1943, were
exchanged in Washington on the 31st May. The agreement came into force
thirty days later. Certain existing duties of interest to both parties are
consolidated and a number of tariff concessions are made on both sides, but the
. agreement contains nothing discriminatory in favour of either party. Persian
exports of gums, opium and handicraft products and United States exports of
motor vehicles, tyres, machinery and lubricants are among the goods affected.
Cereals.
80. Grain collection at the end of June was satisfactory. Total stocks
in the country on the 21st June amounted to 110,617 tons; estimated require
ments until this year’s harvest begins to come in, including a reserve stock in
hand of one month’s requirements, amounted to 69,154 tons : the surplus avail
able to supplement this year’s harvest therefore amounted to 41,465 tons. The
immediate future is assured and it is unlikely that there will be any shortage
during the next six months. The Middle East Supply Centre are, nevertheless,
considering the possibility of holding at a Gulf port a reserve of grain with
which to meet any possible crisis that might arise. Factors liable to upset plans
for the future are the possibility that the agitation against the Millspaugh
Mission, which is dying down, may spring up again presently; the need to
supply areas such as Khuzistan and Bushire, where, owing to crop failure this
year, there will be a considerable deficit; and the dependence of the success of grain
collection on the efficient distribution of cotton-piece goods, sugar and tea. There
is no doubt that this would be a wise precaution to take provided that the inter
national grain and shipping situation makes it feasible. ' There is also a
considerable quantity of grain awaiting transport southwards from Azerbaijan. x
Of a total of 25,800 tons in that province purchased by the Government, about
5,000 tons are being brought down; 10,000 tons could be carried under existing
arrangements during the next two months; but for the remaining 10,000 tons i
there seems to be no possibility of moving it with the transport now available.
In addition, it is believed that another 15,000 tons could still be purchased from
the 1943^14 harvest surplus in that area. Arrangements are therefore being
made to increase the amount of transport available for this purpose by reinforcing
the vehicles belonging to the Persian Road Transport Administration working
locally on collection, and by Iransovtrans vehicles to carry the grain south to
Tehran. If this can be successfully arranged the cereals situation for the future
will be greatly strengthened.
Transport.
81. The transport by rail of civil goods and cereals from the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran.
and intermediate places to Tehran continued steadily under the supervision of
the Millspaugh Mission and with the help of Paiforce. The wagons allotted
for civil goods were on the whole efficiently used and the future prospects are
good. Very little grain now remains to be transported from the south.
Similarly the oil stock position throughout the country was satisfactory.
82. Mr. Shields and his American and British associates in the Road
Transport Administration effected considerable improvement in the organisation
of road transport. Freight rates have been revised and a system of payment
instituted whicth gives less opportunity for bribery and corruption. The British i
military personnel at present supervising the control of road transport in the
provinces will stay until November, the Americans were due to be withdrawn
in August, but efforts are being made to retain their services also until November.
This should enable a good start to be made with cereals collection for 1944-45.
The Road Transport Administration now has European representatives in
Meshed and Tabriz, where the local Government Road Transport offices had