Coll 28/41 ‘Persia. Trade Reports. Kerman 1924–’ [‎78v] (156/313)

2
the imports of Japanese goods of the same kind
show an increase of over 200 per cent. India, on
the other hand, has lost about 25 and the United
Kingdom about 40 per cent. Under the circum
stances, British goods can hardly be expected to
compete with the Japanese products which, at this
rate, are likely to knock even Russia out of the
market.
Japanese cotton yarn, of which there had practi
cally been no import into Kerman since 1927, was
again introduced into the market during the period
under report, at the end of which about 75 per
cent, at least, of the cotton yarn consumed in this
province was of Japanese manufacture. Though
admitted to be inferior in quality to Manchester or
Indian yarn, the Japanese product is considered
to be quite as good for the purpose for which it is
chiefly used in this part of the country, i.e., in the
weaving of carpets, considering that it is at the same
time usually about 10 per cent cheaper in price.
in the case of sugar, due to the concession enjoyed
by Russia as the result of her recent commercial
treaty with Persia, she handled about 75 per cent
of the total imports, at the expense of Java and
Belgium, as compared with 50 and 60 per cent in
the two preceding years.
The sales of the Russian kerosene and petrol were
about one-fifth and one-fourth, respectively, of those
of the Anglo-Persian Oil Company, as compared
with one-fifth for both products in the preceding
year.
(e) The Russians—their trading methods — 'popu
larity—success or failure. —Although it was at one
time expected that, as the result of the new com
mercial treaty with Persia and due to having capable
trade representatives on the spot, the Russians
would carry all before them, they have not achieved
much except, perhaps, in the case of sugar, of which
they have handled the bulk of the import trade,
as already mentioned under (d) above, and, as will
be seen from Appendix II, the total Russian imports
into Kerman show a net decrease of over half a
million Rials.
During the first quarter of 1932 Constant changes
took place in the staff of the Soviet Trade Representa
tion in Kerman, the headquarters of which was
transferred to Bandar Abbas in April 1932 and the
Kerman office was closed down altogether in Septem
ber of the same year.
The Soviet trade of cotton piece-goods received
a severe set-back during the year due to the market
being flooded with Japanese goods of the same kind,
offered at very low prices, and although the Russians
were forced to bring down their prices from time to
time, to compete with Japan, their trade in these
commodities has not gained ground since.
In the early part of 1933, the Soviet methods of
trading with the Persians, which had never been
popular, became still more unpopular and the Kerman
jChamber of Commerce, having no doubt been
influenced by Tehran, decided that individual trans
actions with the Russians should be stopped.
The Bandar Abbas branch of Vaneshtorg, which
had succeeded the Russian Trade Representation at
that place, was practically doing no business at the
close of the year when it was reported that a member
of this concern was on his way to Bandar Abbas
to wind up affairs.
(/) Credit offered by foreign firms as opp9Pto
those granted by British firms. —Under the present
varying conditions of business, brought about as
the result of the inconsistent trade regulations,
credit facilities offered by foreign firms could hardly
be expected to have any material influence on trade.
As pointed out in the last report, the only credit
inducive to trade would have to be local but, with
the deterioration of commercial morality, brought
about by the chronic depression in trade, any credit
offered, whether local or general, could only be very
restricted indeed.
{g) Popularity of foreign goods due to quality, price,
terms of payment, etc. —British goods still maintain
their popularity of being, in most cases, superior in
quality to the products of any other country. As
regards price, however, they are considered to be
more expensive, especially at the present high rate
of exchange.
Russia enjoys a privileged position through the
terms of her commercial treaty with Persia, by which j
she has succeeded in capturing the bulk of the
import trade in sugar and matches. In Kerman the |
Russians have no doubt been greatly assisted also
by having an influential merchant as their sales
agent. The widespread dissatisfaction in Persia
at the Soviet methods of business and their dealings
with Persian traders, however, is changing the posi
tion, and the threats of cancellation by Persia of the
Commercial treaty with Russia, if put into action,
will not fail to have detrimental effects on the Soviet
trade.
Germany appears to have captured at least 75
per cent of the synthetic indigo trade, probably
owing to the fact that representatives of the German
combination of I. G. Farbenindustrie Aktien-
gesselschaft have been active in introducing this
product into the market and teaching the new
methods of dyeing The British indigo is considered
to be less strong than the German product, but
probably a little propaganda in this direction would
give a better chance to British competition.
Japanese cotton piece-goods, as already mentioned
above, are competing very successfully with those of
Russia by the mere fact of being considerably
cheaper.
(A) Openings for British goods. —It is regrettable
to note that, under the present conditions, no im
provement in British trade could be expected.
A great draw-back, so far as Kerman is concerned,
is that there are no British traders on the sopt,
interested in the promotion of British trade. Kerman