'Administration Report of the Persian Gulf for the Year 1938' [‎10r] (19/60)

7
Agriculture. —The three crops grown here are;—
1. Wheat,
2. Barley,
3. Dates.
Lack of rain in 1937-38 led to a poor harvest. But rainfall at the end
of 1938 augurs well for the coming crop. The total rainfall up to the end of
December 1938 was 8-44 inches as against only 3-7 inches in 1937. But
while the crop should be good the management of the Government monopoly
is still most unsatisfactory. As reported before, the cultivator still meets
with harsh dealing and delay in payment from the authorities. The tendency
became more and more pronounced for the peasant to refuse to bring his
produce for sale to the monopoly. Barley and dates, as third-category goods,
were allowed free export. There are now two shops in the town for the sale
of wheat. They are not allowed to supply anyone with more than 3 kilos and
to obtain even this small quantity very often necessitates a whole day's wait.
2. Finance. —With the one exception of a new enterprise, viz., the
Etimadieh Spinning and Weaving Factory An East India Company trading post. (which is now producing to full
capacity), the financial requirements of the few merchants remaining in
Bushire are confined to Customs duties, road tax and forwarding charges on
consignments handled by them on behalf of up-country principals. The
demand for credit for these purposes fluctuates, of course, with the volume of
goods that may be released under Government licence and has varied
throughout the period under review between some Rials 500,000 to Rials
1,500,000 per week. Drawings range from T. T. to 61 days' sight. Latterly
the Government has been more generous in the issue of import licences cover
ing consignments which arrived at this port during 1937 (chiefly of German
origin) and, in so far as importers nowadays do not place orders abroad with
out securing licences, it is expected that some 8,000 chests of Calcutta tea at
present in the Customs-house will be released shortly under licence.
Bushire has ceased to be a centre for foreign exchange. An outside
market or " black bourse " exists within very narrow limits and transactions
as high as Rials 180 per £1 have been reported. This rate is based on the
official rate of 80J plus a premium of approximately 100 per cent, which
importers requiring exchange purchase permits must pay the exporter for
exchange certificates at today's market rates. Added to this importers have
to pay a premium of 15 per cent, on export certificates to be obtained from
the Banque Mellie Iran.
As will be seen from the foregoing remarks the economic policy of the
Government is responsible for this port ceasing to function as a free exchange
or commodity market.
The future of such activity as exists in connection with traffic to or from
up-country is obscure in the extreme, due to (1) the quite incalculable conse
quences of any further official arbitrary measures decided upon and (2)
unmistakable signs of the gradual development of the port of Bunder Shahpur
and railway traffic from thence to the interior.
Interest rates obtained by the Imperial Bank have been slightly more
lucrative at 8 per cent, to 12 per cent, per annum while the Banque Melli4
Iran rates have shown little change at 6 per cent, to 7J per cent, per annum.
3. Foreign Trade. —Table ' A ' shows the number of foreign steamers
calling at Bushire during 1938, with approximate figures of cargo carried.
For easy comparison the number of packages has been converted roughly into
tons at 10 packages per ton.
The number of ships calling at Bushire has been the same as last year.
The amount of trade done however, has been less since although there has
been a slight improvement in exports, imports have dropped by almost half.
The number of British ships calling at Bushire during the year has decreased
considerably. The amount of goods imported by British Ships, however,
has increased. And by far the greatest share of imports is still carried in
British bottoms. There has, however, been a decrease in exports compared
with last year's figures,
23(S) EAD