Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎89r] (182/1028)

however a large decrease in import of crystal sugar in 1936 as compared
with 1935 the figures being 5,500 bags and 24,990 bags respectively. As
regards matches 2,507 cases were imported in 1936 as against 3,623 cases
in 1935. These articles represent practically the only imports from this
source through the port of Bushire.
Exports from Bushire were fairly good and did not show any appre
ciable change compared with 1935 except as regards tobacco (1,764 bales)
of which there was no export in 1935. Gum Tragacanth, skins, ^carpets,
wheat and almonds were exported on a considerable scale but the export
of these articles either has been or is shortly to be confined to monopoly
companies. Private traders have thus lost their last source of profit as
such and now act merely as forwarding agents.
Foreign Exchange. —In January the exchange rate was 95-33 rials to
the pound sterling and 7-15 rials for one rupee. In February it advanced
to 101-50 rials and 7-66 rials per pound and rupee respectively. On March
1st, however, the Government suddenly introduced a law to control foreign
exchange transactions under which the rial was arbitrarily stabilised at 80
to the pound sterling and 6 to the rupee. Only two banking institutions
were authorised under this law to deal in foreign exchange, i.e., the Banque
Melli Iran and the Imperial Bank of Iran. The object of this law was to
restrict as much as possible imports of non-essentials from abroad by the
device of withholding permits for the purchase of foreign exchange m res
pect of all but approved goods. This control although most unpopular
with all sections of the population was still in force at the end of the year.
Shi'pving. Shipping in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. has tended to increase.
Besides the usual services maintained by the British India Steam Naviga
tion Companv a new comer appeared towards the end of the year namely the
lava Silver Pacific Line which has inaugurated a monthly direct service be
tween Batavia and the Gulf Ports. The German Hansa Line now runs
a fortnightly service to the Gulf from Hamburg and one steamer m t e
opposite direction every three weeks instead of the monthly service hitherto
maintained. The increase in this German service appears to be a result
of the Irano-German trading agreement concluded m 1935. _
There are four Japanese steamship lines now operating m the Gult,
namely the Mitsui Bussan Kaisha, Yamashita Line, Osaka Shosen kaisha,
Nippon Yu sen Kaisha.
Other steamship lines maintaining a service between European ports
and the Gulf are the Strick and Ellevman and Bucknall Li .
ApaH from these regular lines Italian and Greek steamers occasionally
supply t some ? of* the ca^tal required" The attempt however proved fruitless
and the project seems to ha¥e “ ra °” s b motor Wry from Bushire
to Shiraz were 90 rials S K autumn aid winter, be
kharvar in the summer and 0 . heavy going in winter.
difference in these rates is accounted for by yheyeavy^g ^
difference in these rates is accou a / era g e d 45—50 rials during the
Camel transport between these two point, a^
year but the time taken is ay = escaped the usual winter inunda-
Owing to lack of ram the Mashil P ^ ofi from the mtel . 10 r
tion and Bushire in consequence was ^no was purely a matter of
during the latter part of the year y fortunate every year. The
chance and Bushire cannot expect to be ^ on the construction of
IrS is £ “ « ■ ««»“* ■
46(C) ExAflairsDep^