"ملف ١٧/ ١٦ صناعة صيد الأسماك في مسقط (زيارة الدكتور بيرترام إلى مسقط)" [و‎‎٩‎٩] (٢١٢/١٩٧)

APPENDIX II
Confidential
THE PE RL MARKET
October
1944
Financial Aspect
The international pearl market has up to now remained in
the state of depression into which it had been thrown by the
crisis of 1929.
Without examining In detail all the elements which deter
mined this state of affairs, it can be said that the competition
of Japanese cultured pearls - pearls made of a foreign substance
a mass of raother-cfpearl of no value covered with a thin coat
of pearly material - has not been counteracted in a suitable
manner. The public was not warned against this Japanese trash «
introduced under the eouivocation of the word ’cultured' and
was allowed to believe that cultured pearls are similar to
natural pearls which is false. Also no effort has been made,
no initiative undertaken, no group formed to fight with adequate
means the disfavour into which the natural pearl had unjusti
fiably fallen.
In fact the price of pearls had fallen to a level represent
ing les- than 10$ of that which obtained in 1928-1929. Prices
have risen noticeably since last year and have reached now,
according to nuality, 15 to 20$ of the old prices. Many
reasons militate in favor of a rapid and lasting acceleration
of this rise.
'i; '
First are the general reasons for the increase in prices qf
merchandise, because of the automatic process of the monetary •;
depreciation. Then are the special reasons for the increase |n
in price of the fine pearl :
I
1. Increase in price at the source.
In Bombay pearls of certain sizes and qualities have almost
tripled in price in the last two years. Even at these prices
It is practically impossible to obtain them. Ill efforts made
by certain Nev York merchants to buy pearls in Bombay have
remained more of less unsuccessful. It must be remembered that
Bombay is the most important commercial market for oriental
pearls found in the Persian Gulf, particularly for most of the
production of the Island of Bahrein. At Bahrein the production
of the fisheries decreases from year to year. The number of
divers which, twenty years ago, was about 60,000 is now under
6,000. Powerful oil refineries which have been bui&t in recent
years at Bahrein after the discovery of oil in that area, pay
higher wages than the fisheries, especially as the fisheries v
work only about four months a year.
However, as divers share in the profits of the boats for ^
which they work, higher market prices would undoubtedly assure
a continuation of supply. The markets of France and Greq# /
Britain were supplied almost exclusively by Bombay and the h
United States obtained its pearls from these two countries• h;
The importation of pearls into the United States reached a h ^
yearly average of ^XJSE ^10 millions during the period from
1920 to 1930. This importation deminished progressively
to {#200,000 in 1942 and to practically nothing in 1943.
2. Healthy situation of the pearl market in the United
The stocks are really insignificant in value in relation to
the buying power of the country. They are in the hands of a few
powerful New York retail houses and several wealthy dealers.
The middle and small retailers have practically nothing.
Thus the market is healthy. In view of the assets of pearl
merchandise, there is no corresponding liability.