Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎175r] (354/1028)

llie meiease in the export of opium to Germany and Europe is reported to
have been due to the Iranian Government waiving the monopoly on the export
of the goods which it is believed have been bought for medical purposes
, As regards the export of illicit opium it is of some interest to note the
•decrease in the figure lotal number exported during the 1933-34 was 3 787
cases whereas the total number for 1934-1935 was only 600 cases This
marked decrease is said to have been due to the troubles in China where none
of the smugglers could proceed with the usual trade in illicit opium.
The Monopoly Department in conjunction with the Iranian Government
however are trying their best to find a market for the stuff but it will prob-
ably take a long time to succeed. The Finance Minister who was recently
m Bnslure showed an interest in the export of •opium and he engaged Haji
Se\ \ ed Ahdui Rasul Ivazerooni to go to China and find buyers for Iranian
ppmm.
Foreign competition .—It would appear that the period of British supre
macy must definitely be considered as ended. Although Russia which was a
dangerous competitor in the Gulf for some years has already ceased to count
m Bushire and other Iranian Gulf ports in the South, Japan— though she has
not officially opened any branches in the Gulf—is showing some signs of
competition in steamship services. The Bombay-Japan Conference Lines,
i.e., P. and 0., N'. Y. K., and 0. S. K. lines maintain a regular monthly service
between Japan and the Gulf Ports. These lines have now given their agencies
to the Mesopotamia Iran Corporation Limited at Bushire.
British steamers however still enjoy a monopoly of the coastal business.
Of course the British India Steamship line Roes better than other British
lines such as Stricks and Bucknall but it is evident that owing to the business
restrictions prevailing in Iran at present the number of British cargo steamers
discharging at Bushire is less than formerly.
Russian goods such as matches and piece-goods have began to be shipped
by Strick boats from Port-said since July 1934 and the freight and other
charges are paid by their Shiraz office.
Another competitor was the Lloyd Triestino Line which opened a ser
vice—agency entrusted to the Mesopotamia Iran Corporation Limited—in the
month of September 1934, but it ceased calling at Bushire owing to lack of
Cargo from Italy. It is interesting to note that this line accepted a low freight
of 2|6d per bag for tobacco contracted from Strick Line in October 1934 and
by this means they managed to obtain a cargo of 17,884 bags of tobacco for
export via Port-said to Beirut.
Japanese goods^however have shown popularity in Bushire market owing
to their cheapness. Bicycles, sundry goods, cotton piece-goods of all kinds—
some of which are satisfactory as regards colour and design—find a market in
Bushire in preference to British and German goods.
Financial .—The tendency for merchants to invest their holdings of money
in the syndicate, the impossibility of turning over capital engaged in trade in
any shape with the continent, the bad effect of the monopoly and enormous
taxation imposed on trade in respect of the purchase, of import certificates,
payment of heavy road tax and other dues, and the difficulties experienced in
finding markets abroad for Iranian products, all resulted in an increasing
tightness of money. To the above points must be added , the fact that any
overseas business transaction takes, as a result of the restrictions in trade, three
to four times as long to put through and involves greatly increased capital
outlay, since the importer has to become exporter, and sell his export certifi
cates at a loss to the National Bank and buy the same at almost double the cost.
Money was tighter than the previous years and lack of confidence among
merchants added to the difficulty.
The Government continues to draw money out of circulation and does not
expend it in a manner in the least calculated to increase the country s produc
tivity and thus its real wealth.
Iranian Government needs money very badly for its military, Navy and
other departments and also for the Railway. MJienever the railway je w
Bandar Shahpour is repaired it is washed away immediately by rough seas. J