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35. At the end of the year a system of sanitary inspection of animals was ap
proved for the whole of Iran. Cattle disease is very prevalent in Ears.
36. There is nothing to report regarding judicial affairs, the Census Departs •
ment, nor the Registration Department. Tiie Education Department has been
busv under the direction of an cx-Army Officer. The Shahpur Boys High School
has been extended and a new school opened at Kazerun. A School of Arts and ^
Crafts with two German instructors were also started in Shiraz. Night classes
for adults and weekly lectures have been instituted. On the whole there is a better
standard of teachers to-day and pay has improved. A “ Museum of Education ”
was opened in the old “ Kolah Faranghi ” building in the Citadel, which lias been
restored.
Military affairs.
37. The 7th (Ears) Division, under Sartip Ibrahim Zandieh, has been increased
to a total strength of over 10,000 men. More barracks have been under construc
tion throughout the year. The French Military Mission paid a visit to Ears in the
Spring. It was rumoured that the Vaiiahd was to assume command in South Iran,
probably with Headquarters at Shiraz. A large new building for Military Head
quarters has just been completed. The General Officer in Command has
twice visited Bushire and the Gulf Ports during the year. In October the whole
garrison was inspected by Sar Lashkar Murteza Yazdan Paneh. At the end of
the year the General twice had to go to Ear in connection with trouble between
the Amnieh and local tribes. He is an energetic and efficient officer.
38. The Amnieh have also been increased in numbers and new posts opened.
They were inspected in the summer by Sartip Ghulam Ali Zand, Officer in Command
of Road Guards for Iran, who included the Gulf Ports in his itinerary. On the whole
the force appears to be efficient and discipline is maintained, though there were
various rumoured irregularities in the Ear district at the end of the year when an
officer and several men were arrested for contraband operations.
39. Unrest in Laristan and amongst the Boir Ahmedi tribes has necessitated
visits by the General Officer in Command of the Ears Division and of the Officer
in Command of Amnieh. Little seems to have been done during the year by the
various Military Governors to speed up settlement of the tribes. Building
continues at Tul-i-Khosrau, but it will be difficult to persuade the Kuhgilu tribes
men to settle there in any numbers.
Economic affairs.
40. The merchant class in general is dissatisfied with restrictions on trade and
the intervention of Government as a trader. This particularly affects the export
trade of Ears, which is passing into the hands of various Companies which mono
polise trade. Exchange Control also has come into force under which the official
buying rate for sterling was fixed at 80 rials to the £ and purchase of foreign cur
rency could only be effected by Banks on behalf of the Exchange Control Commis
sion in Tehran, while sales were only under Government permits issued by the Com
mission after long delays. This has had detrimental effect on the foreign exchange
turnover of Bans and it has seriously effected all import business.
41. Silver coinage has been out of circulation for most of the year. Owing
to the restriction on foreign trade, Banks report that current account deposits have
increased considerably. Some of the surplus has been invested in trading compa
res and industrial enterprises.
42. No new taxes have been introduced during the year, but a new Customs
Tariff contained several increases including charges on motor vehicles, import and
working of which has become a Government monopoly. This has not reduced the
cost of services to the public, while both new and second-hand cars have increased
in price.
43. Piece-goods, sugar and tea continue to be the principal imports. They
are all handled by monopoly organisations controlled by the Government, in which
local merchants have little share. Retailers of piece-goods expect shortly to be put
out of business by the opening of shops by the Cotton piece-goods Monopoly Com
pany.
44. Expert of opium has been considerably restricted. Carpets were shipped
freely by merchants until the end of the year when all transactions became a mono
poly of the Carpet Monopoly Company. Gum tragacanth, almonds and dried