Coll 30/9 'Persian Gulf: Administration Reports 1926-1938' [‎261v] (527/1028)

10
market. The following estimate, furnished by a reliable local authority tm T
to confirm this report.
1931 crop : approximately
Cases.
7,500
1932 crop : approximately
2,500
Exports about
Total
.. 10,000
3,000
Stocks in hand
..
5,800
In merchants go-downs
..
1,000—1,500
Gum .—There have been fairly extensive shipments of gum, principally in
view of their value in export certificates although there was a sharp demand
from Germany for lower qualities towards the end of the year.
Imports.
Sugar .-—The import of sugar iuto Persia is a monopoly of the Russians
hut deliveries have been erratic and prices have shown a tendency to increase *
Matches also are now controlled by a Russian monopoly and short deliveries
of inferior qualities have caused some profiteering in spite of a controlled official
price.
Piece-poods .—Cotton piece-goods form an important item in the Persian
market which has been flooded with cheap Japanese goods of a design suitable
to Persian tastes. The Russians, who previously had practically driven British
(Lancashire and Indian) goods from the market found themselves in turn
unable to compete in spite of price-reductions and offers of discounts. Japanese •
business is conducted principally through buying agents in Bombay where
goods are transhipped to British India Steam Navigation Company's boats.
The terms are usually 20 per cent, with order and balance payable on shipment
of the goods. No credit is allowed but discounts are accorded varying between
10 and 40 per cent.
Manchester piece-goods still come into the country but in very limited and
diminishing quantities and only in certain lines of standard quality such as
white mulls, white nainsooks and Black Italians. Messrs. Zieglers fell me that
they are unable to cover they cost of a recent import of one of their oldest and
most stable lines, a vdiite shirting made especially for them.
Tea.—As a result of the general economic situation the import of tea, which
is almost entirely Indian, has fallen considerably and prices have increased from
Rials 574 per man in January 1932 to Rials 72 in December of the same year
( Sunday mat kef. According to reports there is a general tendency through-
out the country to purchase from Britain in preference to the United States of
America or other European sources but this condition is said to be due entirely
to exchange consideration. In view of the competitive prices offered bv the
! 1 l 1 . . 1 Hg'dom manufacturers a rapidly increasing number of British trucks
is emg imported by Messrs. Zieglers who have completely dropped competing
American interests. * 1 ^ r »
Ihe iclathe position of other foreign interests, excluding Russian, remains
unaltered. & ’
I he Commercial Treaty with Russia, which was signed on October 27, 1931,
came into operation during year and strenuous efforts were made bv the
l0 , c< ?! Soviet Trading Organization to take advantage of the favourable terms
of the Tieah to develop Russian trade with Persia. Persian merchants,
how e\ er, were not slow to discover that the Treaty merely strengthened Russian
control of eisian markets to the detriment of the Persian merchants them-
sehesaiid ^ 10 un P°pularity of the agreement provoked an agitation for its
cancellation.
The traditional hostility to the Russians in this district and distrust of their
lac One lakh is equal to one hundred thousand rupees mg me io*ds is detrimental to the development of their activities and apart
from the monopoly goods they have not met with gredt success.
J. G. BAILLIE,
H. M.’s V ice-Consid,
Bush ire-.