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rights for these companies. I do not think that Sarhang Bayendor visualised a
“ Port of Khorramshahr Authority ” or “ Khorramshahr port Trust ” with all the
responsibilities and duties undertaken by such bodies as the Port of London Autho
rity or the Bombay Port Trust. I am inclined to think that his sole motive was to
“ keep the money in the country ” and to keep local affairs of any kind under his
own control. The volume of correspondence between the Naval Port Officer, the
Director of Customs and Managing Director of the Shirkat Kashtirani Karun
passing the baby ” of responsibility for goods from one to another shows that
neither Sarhang nor Major Bayendor had foreseen that any responsibility was
entailed. They have displayed considerable ignorance of Shipping and Business
methods on other occasions and I am of opinion that they did not realise what their
liabilities would be if the Shirkat Kashtirani Karun obtained monopoly rights or
that they would be responsible to any one other than themselves. In fact, I think
Colonel Bayendor imagined that the Shirkat Kashtirani Karun would give him
increased power and money, and the gratitude of His Imperial Majesty the Shah
and all Iranians for Iranianising a lucrative business, previously in the hands of
foreigners.
9. Since the Shirkat Kashtirani Karun received monopoly rights foreign
shipping has avoided Khorramshahr to a certain extent. During the first half of
April only six ships called here instead of the usual ten, and of these 4 were the
B. I. S. N. Co.’s Fast or Slow Mails. This Company is handing over their cargoes
“ undepstrict protest”, although the Naval Authorities after asking for a definition
of protest repudiate its admissibility. Messrs. Frank C. Strick & Co., Limited’s
Steamers and the Hansa Line are avoiding this port, and I have seen a letter from
the latter company stating that while they do not wish to impede the trade of Iran
they cannot allow delays to their ships on account of inefficiency. They are
collecting a large consignment of goods for Iran into one ship at Basra and are
sending her to Bandar Shahpur. If she cannot be unloaded immediately, she is to
proceed to Bombay and dispose of the cargo there. Messrs. Frank C. Strick & Co.,
Limited, appear to be working in conjunction with the Hansa Line. This amounts
to a form of limited boycott, as suggested in Mr. Gardener’s despatch No. 44, dated
the 16th April 1937. *
10. With the limited amount of cargo arriving at present it is hard to say
whether the Shirkat Kashtirani Karun will be able to develop into an efficient landing
company. It is interesting to note that their charges were immediately 20%
above those last quoted by Gray, Mackenzie & Co., Limited, and that the instruc
tions that they must insure cargo in their barges between ship and shore with the
Agence Istufani Tehran had not then been given. Their barges, tugs and launches
are old and even the best would hardly pass a strict survey. They have engaged
blacksmiths and carpenters to patch certain other lighters to augment their fleet,
and talk of placing orders in Germany for new iron barges. At present they have
not the money to make purchases, but will require credit and Foreign Exchange
from the Iranian Government, which will be hard to obtain with the failure of the
German-Iran clearing agreement. Again, they are not employing men renowned
either for their knowledge of shipping or business integrity. Such men as Hira-
nand Hingorani (see my despatch No. 18/11/1422 of 24th November 1936) who is
their Shipping Superintendent, and Z. H. Khan (see paragraph 243 of my Diary
No. 16 for 1936) who was dismissed by Messrs. African and Eastern (Near East)
Limited for inefficiency and dishonesty some months ago, are not likely to inspire
the public with confidence. I feel sure, however, that rather than admit their
own inefficiency, they will blame any possible failure on the lack of co-operation
of Foreign Steamship Companies.
11. The British Shipping Agents, for different reasons hope that the Shirkat
Kashtirani Karun will fail. Messrs. Gray, Mackenzie & Co., Limited, know that
Mesopotamia Iran Corporation made a satisfactory profit out of the landing business
in the past and hope to do so again. Messrs. Frank G. Strick & Co., Limited and
Messrs. African and Eastern (Near East), Ltd., are not finding their dealings with
the Shirkat’s representatives, chiefly Mr. Hiranand Hingorani, any too easy.
The latter refused Messrs. Frank C. Strick & Co., Limited, any receipt for cargo
discharged from the S. S. “ Bandar Shahpur ” recently. (See my telegram No. 14
of 14th April 1937.) On the other hand they are not anxious to resume landing
cargo which has been a tiresome and unremunerative business for them since they