‘File 29/25 DATES QUOTA – 1944-’45 FOR BAHRAIN AND TRUCIAL COAST’ [‎16r] (31/188)

IRAQ DATES - COORDINATED DISTRIBUTION .
1. Purpose of the Schem e.
The short crop in 1942 enphasised the supply uncertain
ties resulting from the uncontrolled marketing of Iraq dqtes.
This among other consequences resulted in the U.K. only receiving f
10,000 tons of cased dates against a contract for that season
of 45,000 tons. It was felt, therefore, to be desirable to
attempt to bring dates under allocation in a similar manner to
the procedure adopted for all other important crops under
Combined Food Board machinery. This involved not only the
control of cased dated, but also basket dates which are imported
solely by India and Kiddle East countries.
2. Outline of the worklnx;the .schen e.
It was the original purpose of the Cche-.e to purchase on
GovernmentjfGovernment terms the entire production of Ir a q dates,
and after making provision for local consumption to bring all
exports under complete control. It soon became apparent that
this design could not be realised and progressively the con
ception of a direct contract between the Ministry of Food ( for
H.M.G.) and the Iraq Government emoracing all Iraq dates had
to be abandoned. By an endorsement of the original Concession
agreement the purchase v/as effected between Andrew Wei?, & Co,
acting as principals, and the Basra Date Association. The
Concessionnaires thereafter sold to the Ministry and acted as
their Agents in the control of distribution. Euphrates growers
held out for higher prices than it was agreed to nay 1n Basra
and remained outside the scheme in its original form.
Quotas were fixed for importing areas by M.E.S.C. in con
sultation with the territories concerned, and deliveries were
made by Andrew Weir & Co under the instructions of the Ministry
of Food in accordaxice with these allocations. Normal trading
channels ?/ere used as far as possible, although in the case of
Palestine and Baud! Arabia purchases have been centrally
arranged.
All sales were made to the recipient countries F.O.B.
against 100/2 payment with no subsequent claims for quality.
The prices originally fixed were calculated upon estimates of
the costs intervening between the naked price and F.O.B. which
were furnished by Andrew Weir <?: Co. To these costs were added
Weir * s agreed commission of 2/2 d.. and Ministry contingency
reserve of l/lC d. The analysis oi the F.O.B. price of 25/-
per cwt. was thQss-
Ex garden cost 14/6d.
Packing and other
costs. 6/6d.
A.W. commission 2/2d.
Ministry reserve l/10d.
25/- —
Experience gained in the working of the scheme disclosed a con
siderable over-estimate of the packing and other incurred costs
and by virtually eliminating its allowance for contingencies
the Ministry was able to reduce the F.O.B. price for basket
dates at the beginning of February to 21/- F.O.B. By this time
however, substantial smuggling had undoubtedly taken place owing
to the excessive margin between the ex garden and F.O.B. prices.
Although the Euphrates growers had refused to accept the terms
offered to them it was hoped to prevent their defection from dis
turbing date markets in the Middle East by aaing military con
trol of the Ir a q railways to deny transport facilities to
Euphrates dates. It was anticipated that this might hav§ the
further result of diverting some tonnage of Euphrates dates
southward to be offered in the Basra Liwa. The ban on trans
port proved effective and in February Andrew Weir & Co were
approached by the Iraq Authorities to purchase all Euphrates/
datedk