'File 9/7 Report on Trade Conditions in Persian Gulf' [‎5r] (9/36)

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oondltlon* th«y introduced me to many offlotel* and merchants
whose valuable speolalised knowledge was of the greatest
U
assistanoe In *y Investigations#
6* l aportanee of Bahrain*
?ahrain is a particularly clean, and well ordered
town with an air of optimism if net of actual prosperity* The
value of British influence in the administration is obvious
end with the careful exploitation of the benefits which will
soon aoorut from the oil field now under development, the
ooiiterclal importanoa of Bahrain is bound to inoreaee*
6• Jap anee e goapetitlon*
Probably the most disturbing feature of my tour was
the realisation of the extent of the Japanese competition in
the Oulf. Everywhere on the Arab Joaat the bazaars are flooded
with Japanese goods which are offered at prices usually ranging
from one quarter to one third of the articles which they are
supplanting* A certain amount of the trade is done direct with
Japan but the bulb: of it is done through agents in Bombay or
Karachi* Tts noocss is almost entirely due to prloe although
the quality, appearmnoe and packing are said to be the deciding
factors in son;* oases*
7* Cotton and artificial silk goods, in ths piece and other
wise, are the most prominent Japanese goods in the Gulf and they
are undoubtedly supreme* Tennis shoes,crockery and cement are
also Important lines but the competition covers a wide range*
8• feffoot on Statec Hevenues*
So far as the Arab States are concerned this wavs cf
cheap goods is rather a mixed blessing* The joy and satisfaction
wnioh it affords the poverty stricken masses,and which it is in
the interests of the various Shaikhs to cultivate,is tempered,
for the rulers, by ths prospect of its effect on Stats revenues*
9. The tempting prices will certainly result in an expansion
fo* 9# the need, for more frequent renewa^