مجموعة ٣٩/٢٨ "بلاد فارس: مراسلات مطبوعة ١٩٢٩-١٩٣٦" [و‎‎٤] (١١٧٤/١٨)

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In spite of the severe penalties announced for infraction of v
change Control Act, it is reported that a secret black bourse is alread^
operating in the Bazaar where rates vary between 100 and 110 rials to the
pound. It would indeed be strange if this were not the case since so manv
people with ample funds in rials are unable to obtain urgently needed
foreign exchange for their trading or private needs. In filghdld where
he control naturally does not operate, the exchange rate is similar JS
prevailing on the black bourse in Tehran. There is a strong conviction,
not to say hope that as the trade of the country is increasinglv crippled and
the shortage of exchange becomes even more marked, the Government will
be obliged to increase the rate in the near future to at least ninety rials in
order to make export operations reasonably profitable
According to reports from His Majesty’s Consul-General for Khorassan
Indian traders in East Iran are seriously perturbed by the new exchange re
gulations together with the monopoly legislation which is closing most of
the normal avenues of trade. They are now not only unable to remit to
India the profits, if any, realized on their transactions, but are unable to
obtain foreign currency to remit to their families abroad for normal main
tenance or educational purposes. Even if they decide to suspend operations
in Iran and return to India there is no guarantee that they would be able
to obtain rupees from the sale of their businesses. Their activities range
over such a wide field, from tailoring or laundry business to the motor trade
or import and export transactions, that it is "extremely difficult to devise
any remedy for their plight. There is no evidence to show that the ex
change control and monopoly restrictions are being deliberately used by the
Iranian Government to discriminate against foreign traders, and it is
therefore not possible to intervene on behalf of the Indian traders on these
grounds.
New Customs Tariff.
The new Customs tariff approved on May 21 st, has not yet been publish
ed officially, but unofficial versions in Persian have been issued by two
Tehran newspapers, and from one of these a provisional translation has
been prepared by His Majesty’s Legation. The principal change is that
the new rates are specific in respect of most imports, instead of ad valorem.
The taxes will be levied in ordinary rials at the normal rates of exchange
instead of in fictitious “gold” rials with a surtax of 160 per cent, on the
published rates. It is not yet known whether the obligation to purchase
foreign exchange at fictitious rates which was formerly obligatory in respect
of certain imports will disappear, but the new duties will not supersede the
road tax previously charged on most imports, which is in many cases more
onerous than the Customs duties themselves. In addition to Customs duties
and road tax, imports (except those from countries with clearing agree
ments) will still be saddled with the charge of 17J per cent, in respect of
import licence, as well as certain monopoly taxes as in the case of cotton
piece goods.
The new duties as a whole are much higher than those previously in
force, with the exception of some low-priced articles of prime necessity and
wide consumption, e.g., sugar, tea, lower grade piece goods. In the case of
certain “luxury” articles, in which class apparently private motor cars are
included, the duties will be much higher with the object of reducing imports
and of further stimulating internal industrial development. The bill in
troducing the new duties provides powers for the increase of duties on part
of or all imports from countries whose Customs tariffs or other measures are
considered to be prejudicial to Iran’s export trade. It was stated in the
Majlis in the course of the debate that agricultural and industrial maeki-
nerv will continue to be exempt from Customs duties,
43?(C) F&PD