'The Middle Eastern question or some political problems of Indian defence' [‎49v] (103/616)

66 BRITISH TRADE AND RUSSIAN COMPETITION
sterling, Russian trade has increased 80 per cent, within
thirteen years, whilst British trade has decreased 15 per
cent. Even if we do not accept the figures prepared
by the Belgian Customs Administration as absolutely
conclusive—and as far as British trade is concerned
it is difficult to do so in view of our own Consular
reports —it must, I fear, be admitted that Russian
competition has already wrested from us the commercial
supremacy we have hitherto enjoyed, and for many
years, almost unchallenged, in Persia.
Considering the immense activity which Russia has
displayed of recent years in Persia, the rapid strides
she has made in this direction are not surprising.
Russian trade already enjoys, in addition to the initial
advantage of close proximity to the markets of Northern
Persia, the benefit, first, of relatively easy access to
them over roads the construction and maintenance of
which would have been impossible without the financial
and political support of the Russian Government;
secondly, of an elaborate system of special rates to the
frontier and bounties on export of which the Russian
Treasury is willing to bear the burden, recouping
itself the while by profitable loan transactions with
Persia; and, thirdly, of the vigorous pressure which
Russia's political and financial ascendency enables her
to exert through the channel of a powerful bank, which
is in reality nothing less than a branch of the Russian
Ministry of Finance. Fierce as, under such conditions,
the competition to which Russia subjects British trade
has already become, its full pressure will only begin
to be felt under the new conditions arising out of the
abrogation of the provisions of the Treaty of Turkman
Chai, which until early in 1903 governed the trade
relations of all foreign countries (except Turkey) with