File 1283/1913 Pt 1 'Persian Gulf: Anglo-German Commercial Competition' [‎225v] (54/272)

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the bulk of the wheat brought down the coast when they are buying their barley (wheat
and barley being generally brought in for sale mixed in the proportion of 3:1)?
Presumably, such an advantageous position for the G ei mans could only be met by
rebates bv the railway company for direct exports to Great Britain and India, or by
rebates, or lowering of freight, of British shipping companies, or by His Majesty^
Government granting a subsidy to equalise British and Geiman lates of fi eight.
In this connection the recent negotiations regarding rates of freight by the
Bagdad-Basra railway and the new Anglo-Turkish navigation combine are of interest.
(F.)— The question of a Subsidy.
The Board of Trade are no doubt correct in saying that from a purely commercial
point of view the exports of Persia are not important enough to justify a grant, and
that a subsidy could only be defended for reasons predominantly political. But
presumably, if the political reasons were sufficiently strong, then a subsidy would be
defensible. This is exactly our contention. Such damage is done to British interests
in the Gulf grain trade by the German methods, and so unduly enhanced is German
prestige and influence by their power to buy more freely than British merchants, that
it has become politically advisable to prevent the Germans encroaching further on the
British position. The risk of a subsidy to British steamer services being made public
would, in any case, be preferable to allowing the former British position in the export
trade of the Gulf to be completely usurped by the Germans, and the British public
remain in ignorance of this development.
Moreover, is there any reason why British subvention of the export trade from the
Gulf would be any more public than the present subsidy and financial support which
Messrs. Wonckhaus enjoy ? All that would be needed would be to fix the current rate
of freight for grain homewards for the season or year at 205. per ton, or as the case
may be, and then a reduction up to 5s. be allowed by Messrs. Strick’s agents on all
shipments of grain to England. In this manner extent of the subvention would be
narrowed, for exports of barley to Hamburg by British firms would not benefit.
Without going as far as a subsidy, it might, however, be possible for Government
to impress on Messrs. Strick and Co. and other shipowners the political necessity for
cheaper rates of freight when the time comes round.
(G.)— Lighterage.
The Board of Trade state that, according to Mr. Strick, the matter of a lighterage
service in Bushire has been under the consideration of Lord Inchcape, and that
Mr. Strick would communicate with the latter. Would it not be possible for the Board
of Trade to ask both Lord Inchcape and Mr. Strick for the result of their discussions
in regard to this matter, and thus advance matters a step ?
The extension of such a project to Bunder Abbas has been advocated by the
British India Steam Navigation Company in the past. For that reason, and for the
better financial prospects that would offer themselves if several ports were covered by
the lighterage comyany, Bunder Abbas has been included in the scheme recommended
previously. It may be noted also that there is a movement by the shipping companies
at Mohammerah and Bahrein to manage the lightering of their own cargo.
British Policy towards German Shipping and Trade in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
The Board of Trade memorandum, in its concluding sentence, negatived the
various suggestions and proposals made in former reports from this office as of little use
until order was restored in Southern Persia.
Though the vital importance of security to British firms engaged in trade with
Southern Persia is fully recognised and endorsed by His Majesty’s representatives
in the Gulf, the argument, that the measures hitherto advocated for checking German
commercial and political progress in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. as a wffiole are affected by the
position of certain British firms and of British trade in Southern Persia, is not clearly
relevant.
The position up the Shatt-el-Arab, at Basra, Bagdad, and Mohammerah, for
instance, is in no way concerned with the British firms trading in Southern Persia.
Similarly, at Bahrein, loaf-sugar, the greatest import by German ships, is sent out
to the Gulf by British firms and brokers; but even when consigned to South Persian