'Administration Reports 1925-1930' [‎173r] (350/418)

9
recorded as entering during tliat year, but which merchants refused to take up on
the krans fall in the autumn, and finally did clear when the rise in price levels made
it worth their while to do so in the spring and summer of 1930. That these
goods amount to a considerable figure seems highly probable, as may be gathered
from the illustration afforded by piece-goods quoted in the preceding paragraph,
and it may be reasonably inferred that the actual reduction in imports is more like
35% than 25%. The export figures tell a similar tale ; the 1930 total is 54- 5 million
krans as against 79 million, showing a decrease of approximately 32%, but they
cannot be considered at all reliable, because on the one hand, the effect of the
exchange law has been to encourage exporters to underdeclare the value of their
goods as much as possible and so reduce the amount of the sterling which they were
bound to sell to the Government at 60, while on the other hand, the customs were
empowered to add 10% to all declared values of exports to counteract this ten
dency.
The immediate future holds out little hope. With the purchasing power of the
population being daily decreased by the imposition of new and increased taxation,
the incidence of which falls in greatest measure on the poorest sections of the
community, a continued shrinkage in all but the most inelastic market seems
inevitable and when at length there is a return to more prosperous conditions much
of the ground lost by British interests would seem likely to prove irrecoverable.
The Russians appear bent on a policy of increasing their activities in Southern
Persian markets, while signs are not wanting that the Japanese are only waiting for a
favourable opportunity to enter the field. The success which has of late attended
the latter's activities in the Arab coast markets has been most marked, and the
ground has been gained almost entirely at the expense of British and Indian inte
rests.
Commimca^'cws.—Means of communication have remained much as in the
previous year. While motor transport was less plentiful, it was available in excess
of the trade requirements and rates remained low in spite of the heavy new tax on
motor vehicles and increased cost of living. The firm of H. S. M. R. Kazerooni
inaugurated a transport service of their own in the middle of the year and by the
close were operating a fleet of some thirty trucks of from 3 to Ij tons. This venture
although begun under the handicap of depressed trade has proved so far an unquali
fied success chiefly, no doubt, owing to the fact that Messrs. Kazerooni have gene
rally had enough merchandise of their own to forward up country, but also in no
little measure to the very high standard of efficiency with which the scheme lias
been organised.
In spite of the very heavy taxation now imposed on motor vehicles no work
worthy of mention was done on the Bushire-Shiraz road, the surface of which, in
the kotals, is appalling and rapidly becoming worse. In January and February
the Mashileh proved impassable to wheeled traffic but the road remained otherwise
open for the whole year and, apart from isolated cases of brigandage, was safe.
With the continuance of low rates of hire and restrictions imposed on the
import of motor cars it seems inevitable that much of the notable progress made in
transport facilities in 1928 must be lost.
Security. —Security may be said to have been good. The tribal disturbances of
the summer were confined to areas distant from the Bushire-Shiraz road, while
individual cases of highway robbery were few.
Smuggling. —With the imposition of a 20% customs surcharge at the beginning
of the year added inducement to smuggle was presented. That this state of affairs
will continue seems almost certain, for profits involved are high. The c. i. f. price
of a bag of Marseilles sugar at Bushire is approximately 15/- while the wholesale
price in the town was brought by revenue and other charges up to 180 krans per bag-
in December—equivalent at the then bazaar rate to £1-15-0 or £ 3 at the Govern
ment rate. Against this however must be put the fact that the Government have
extended their control in Laristan and other districts in the interior, and while there
is no great difficulty in landing goods on the Persian coast,^t is by no means so easy
to transport them to the interior where the chief market lies. There was in conse
quence much less smuggling during the year under review than formerly.
MC171FD