Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎138v] (281/1028)

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Exports. —The principal exports of the Shiraz market consist of
Lambskins, gums (trangacanth and Arabic), opium, almond kernels and
carpets. Statistics are not available.
Skins .—The lambskin trade was very dull throughout the year, the
only buvers being the Soviets Trading Agency An office of the East India Company and, later, of the British Raj, headed by an agent. . The London market showed
renewed interest at the end of the year and contracts for over £ 10,000 for
lambskins were carried out.
Qums .—Gum tragacanth was in good demand during the year, not only
for London, but for America, Continental and Japanese buyers and large
orders were filled.
Prices for the better qualities rose and the high average exchange of
the £ 1 , enabled exporters to pay good prices.
Shipments of Gum Arabic were fair.
A Imond Kernels .—The usual small quantities exported increased
largely on the imposition of sanctions against Italy and quantities were
drawn not only by London and India but by the Spanish markets, presu-
mablv for re-export under their label.
Economic Conditions.—TYime was no improvement in the economic
condition of the Province of Pars. Tightness of money, with the dram
of taxation and the trade restrictions were more severe.
At seasons there was a shortage of currency which made banking and
other transactions difficult.
The grower has benefitted by the increased and fixed prices paid by
government and the trading companies for produce but he will not be
able to demand higher prices in years of small yields. Meanwhile his
purchasing power has increased to the benefit of government which will
derive the profit as the largest shareholder in the more important trading
companies.
Taxation .—The road tax of Rials 100 (£1-5-0) per mensem on motor
cars was abolished early in the year, when an additional tax was imposed
on petrol and kerosene.
A new tax of 3 per centum nd valorem upon all agricultural produce,
pavable on entry into consuming centres, replaced the land tax which it
had been found difficult to collect. The collection of the new tax has not
worked too smoothly, especially upon produce in transit which in practice
is liable to fresh payment at other centres. Facilities were given to land-
owners for payment of arrears of the land tax. All fines for non-payment
have been waived and periods of grace of from two and a half to five
years have been given for the payment of the arrears.
The tax of Rials 3 (about-/10d.) formerly levied on lambskins has been
abolished.
€ost of living .—In June there was a sharp rise in the cost of all local
commodities, bread, rice, ghee, charcoal, etc., owing to government and
municipal taxation upon agricultural produce. Appeals to the central
government by the Governor-General succeeded in securing a return to tne
normal prices in the ensuing two months.
Exchange. —With, the rise in the value of silver, attempts were made
bv the National Bank of Iran to force down the £1, which reached the
low exchange of Rials 54.
The market realized conditions and there were heavy speculative pur
chases of sterling which forced the Bank out of the bidding as their sterling
reserves became exhausted.
Sterling soon stood at Rials 75 per £ 1 , again and rose steadily to
Rials 85 and over, standing at nearly Rials 90 at the end of the year.
Sugar Factory An East India Company trading post. .—The government sugar factory An East India Company trading post. erected at Marvdasht,
on the Shiraz-Persepolis road, near the Band-i-Amir river, was opened
officially in the name of the Shah by the Prime Minister in October. The
water channels to the river were completed later when the pumping
machinery was installed.