Coll 28/39(2) ‘Persia. Printed Correspondence, 1937–’ [‎23v] (46/320)

44
as I am told that one of the main reasons for the huge rise in transport rates
is lack of tyres and spares which has resulted in many trucks being laid up.
Of 800 motor vehicles which arrived at Khorramshahr in November, it is
said that not more than 25 had been cleared up to a few days ago and a
further large consignment is due shortly. During the last few months ad
ditional lines (Japanese, Dutch-Java and American) have started regular
services to the Gulf, which will certainly not help to relieve the existing con
gestion.
( 35 )
(Received on 1st May 1937 with Political Secretary's Letter No. 15, dated the
15th April 1937.)
Enclosure in Eoreiga Cffice covering letter No. (E. 1727/76/34), dated 13th
April 1937.
[P. Z. 2443/37].
Despatch from His Majesty’s Minister, Tehran, to His Majesty’s
Secretary of State for Foreign Affairs, London, No. 77/231-7-37,
dated the 27th February 1937.
With reference to certain reports which are current regarding the navigation
of the Karun, I have the honour to state that I have no information which
would suggest that the Iranian Government are contemplating the closure
of the Customs house at Ahwaz, or other immediate steps to divert traffic
from the Karun to Bandar Shahpur, and the railway. The Iranian Govern
ment are undoubtedly aware that Bandar Shahpur cannot possibly deal with
the present volume of traffic, and it seems unlikely that they will be so foolish
as to prevent traffic through Khorramshahr and the Karun route in the near
future. I have however requested His Majesty’s Consul at Ahwaz to pre
pare a report on this question, and I shall not fail to inform you of his views
in the light of local knowledge. If it should prove necessary to make any
representations to the Iranian Government regarding the closure of the Ahwaz
customs, I agree that representations based on treaty rights hold out little
hope of success. The Iranian Government would certainly deny the pre
sent validity of the 1903 Convention and would resent any suggestion that
their right to open and close customs houses when and where they choose is
in any way limited by treaty. I think therefore that any representations
should be based on considerations of practical convenience. But as I have
said, I have no reason to suppose that the closure of the Ahwaz customs house
is proposed at present.
2. I have no special information regarding conditions at Bushire, bu^
I have no doubt that the congestion is due to the same causes at all the Gulf
ports. There are two main causes (a) the fact that some of the various mono
poly companies have made the mistake of ordering in single consignments
the supplies which they need for a whole year’s working and (6) the difficulty
of obtaining exchange to clear goods from the customs. Thus abnormally
large quantities of goods have arrived at the Customs, which are already
packed with others that cannot be cleared for lack of exchange. Storage
space is hopelessly inadequate, and lighters must be used for storage and
cannot be unloaded for weeks, so that they are not available for unloading
ships. At Khorramshahr it has been necessary to bring lighters from Basrah
at exorbitant rates of hire, and it seems clear that the same trouble has occur
red at Bushire where there is no alternative source from which lighters can
be obtained.
3. The Iranian Government are undoubtedly fully aware of this position^
and acutely embarassed by it. They are doing what they can to improve
landing facilities at Khorramshahr, and are considering a modest scheme for
improvements at Bandar Shahpur, which it should be possible to realise with
out great delay. As reported in my despatch under reference, they have
appealed to the Anglo-Iranian Oil Company to help them out of their diffi
culties at Khorramshahr. The situation is indeed still most unsatisfactory.
Nevertheless I do not think that anything would be gained by representations