Coll 17/10(1) 'Internal: political situation; relations with HMG' [‎368v] (741/982)

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The above figures are taken from official Iraqi sources. It is interesting to
compare them with the value of the British exports to Turkey and Persia over
the same period:- 1930-31. 1931-32.
Iraq
Turkey
Persia
£
1.665.000
1.868.000
2,695,000
£
1.305.000
1.715.000
727,000
1932-33.
£
2.179.000
1.484.000
827,000
Thus Iraq with 3 million inhabitants, took last year very nearly as much in
British eoods as Persia and Turkey, with 24 million inhabitants, combined.
While the volume of British exports to Turkey and Peisia is steadily diminishing,
the flow of British goods into Iraq is steadily maintained. Iraq is one of the
very few countries whose commerce shows a steady balance of trade in favour of
the United Kingdom. In 1932-33 Iraq imported from the United Kingdom
anods to the value of £1,221,000 more than she exported to the United Kingdom.
& 14 Numerous other comparisons of a similar nature could be drawn to
demonstrate that Iraq, for her size, is an excellent customer. There is no reason
to apprehend that British trade will diminish to any marked extent, as long as
the privileged position in Iraq, secured to Great Britain by the Treaty of
Alliance, is maintained. Iraq places no hampering restrictions on imports, and
has no trade quota, no discriminatory tariffs, and no exchange difficulties or
restrictions; her currency is linked to sterling, which in itself greatly facilitates
commercial relationships with Great Britain.
15. Great Britain is deeply interested in the exploitation and development
of the oil-fields of Iraq. At the present time Iraq’s requirements of petrol,
kerosene and oil are supplied almost entirely from the wells in the transferred
territories on the Persian border, which are operated by a British subsidiary of
the Anglo-Persian Oil Company. The requirements which are not obtained from
this source come from the Anglo-Persian Oil Company’s wells in Persia. The
distributing company, which employs about forty Englishmen in Iraq itself, has
a virtual and very valuable monopoly of the sale of oil products in Iraq.
The operation and development of the rich oil-bearing area round about
Kirkuk is in the hands of the Iraq Petroleum Company, which is nominally
one-fourth British, but is under British direction. The work involved in drilling
and testing the area has cost approximately £3^ million, and has given employ
ment to a large number of people, many of whom, apart from the actual drillers,
have been British subjects. The work on the construction of the pipe-line, the
pumping stations and other works preparatory to bringing the wells to production
will involve the expenditure of many more millions. Many British subjects are
employed on these works. British firms have received a large proportion of
orders for materials, and contracts have been placed in the United Kingdom for
the supply of pipes, heavy transport, pumping engines, to the value of at least
^nnlhon. The economic value to Palestine of an oil terminus at the port
of Haifa^ built by a loan guaranteed by His Majesty’s Government, is
considerable. The routing of the main channel of the pipe-line to Haifa, by
t ^ 11S ^U^een made possible, was ensured by the influence of the Anglo-Iraqi
lance. When the company reaches the productive stage, with its pumping
stations and water wells spaced over the Syrian desert and the wastes of
i ransJordan, British personnel will be required in appreciable numbers to man
in^raq 11 ^° S S ’ m ac ^ 1 ^ 10n those needed to carry out the work of the company
n -i 1 ^ he 1 onl y ot her concession in the oil-bearing area has been given to the British
hp^ iw c f m 5 nt C ° m fi any ’ a Britl sh registered company. Their activities have
of tho > C e r f ^ t0 the present, and there has been no substantial development
bp raiQPri i n 18 that a considerable part of the necessary capital will
nra pH hi p in / ea tP 1 * 1 ^ 11 ’ anc ^ hoard have publicly stated that, where
manufactoers derS ^ ^ material re q uir ed will be placed with British
induftry^n Iraq reStS therefore ’ ver y closel y boun d up with the promising oil
the British ^pormPY^ comi ^ erc ^ a ^ interests m Iraq are, owing to the existence of
dpnartrruvnf A? re on J mail tly British. With the exception of a foreign
denartment «tnrp ™ fhA T T ^aj-wsii. vv itn tne exception of a foreign
o, and one American date-growing and exporting firm,
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