Ext 329/43(2) ‘SHIPMENT OF DATES TO PERSIAN GULF STATES’ [‎2v] (4/226)

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^ ‘ Ivlr» Parsons thoii ht that the v/hcle of the Ministry of Pood's 1944/45
purchases nl ht be disposed of without loss, as, in spite of her original
decision not to enter the scheme, Syria had taken a substantial quantity and
unexpected markets had been found in Persia, some liberated territories, and
Italy. He pointed out that the dhow A term adopted by British officials to refer to local sailing vessels in the western Indian Ocean. traffic to India had been reduced
and great difficulty experienced in obtaining ocean shipping, undrew Vrer '& Co.
had a concession for a further two years for all dates, basket, and boxed, in the
Basra Liwa at last year's price; but had no control over Euphrates dates.
It was therefore necessary to decide, if the sale of Euphrates dates was left
to a free market, whether it would affect the price of the dates sold by
Andrew ,/Sir. Basra dates if bought by the Ministry of Pood from ^ndrew Weir,
could be sold to Middle East territories at a slightly lower price than last
year, when the cost of basket dates had to be increased tp cover the higher
price jaid for Euphrates dates. If, however/ the price of barley fell, it was
possible that date prices might also fall, especially as crop prospects were
good* If the Ministry of Pood only contracted to buy boxed d ates from Andr ew
Weir, the Company would probably charge higher prices in order to cover any
possible losses on basket dates.
5. Mr. Day pointed out that the Company could cancel their concession with
the Iraqi Government on the payment of £30,000, and it might be cheaper for the
Ministry of Pood to pay Andrew Weir this amount than to have to pay more for
boxed dates.
6 . Mr. Hsurdain explained that the Middle East Supply Centre had entered
into the scheme somewhat unwillingly and would not want to continue it. He did
not think the Centre could do anything more co induce the territories to take up
their stated requirements in full or to make firm contracts v/ith the Ministry
of Pood for dates. It would also be difficult to organise any better transport
as the Baghdad Aleppo railway would not be controlled much longer by the military
authorities, who would be withdrawing rolling stock. The carrying capacity of the
railv/ay would therefore be likely to decrease rather than increase. The dhow A term adopted by British officials to refer to local sailing vessels in the western Indian Ocean.
traffic was not controlled by the Ministry of War Transport, and the provision
of ocean tonnage presented great difficulties. The Co-ordinated Scheme could
not be operated in the Middle East unless dates bought by the Ministry of Food
were likely to be cheaper than those bought on the free market, a condition
which would only obtain in a bad season. Since there was likely to be a good
crop it was probable that the dates sold by Weir to the Ministry of Pood would
be more expensive than those purchased on the free market.
7. Mr. Nind believed that the Arab Sheikdoms would not be anxious to enter
into a co-ordinated scheme.
G. Mr. Parsons thought that the best solution would be for the Ministry of
Pood's purchases in 1945 to be limited to boxed dates, of wiich he was:of opinion
that 60,000 tons could be allocated by the C.P.E.
9. Mr. Wilson stated that the Treasury would prefer that the Ministry should not
-purchase basket dates from either the Basra or Euphrates area, and he felt that
future purchases should only be made against firm orders.
10. Mr. Jourdain asked how Andrew Weir would dispose of basket dates from the
Basra area if they were not bought by the Ministry of Pood and whether there
would be political repercussions with the Iraqi Government if the Ministry of
Pood only purchased boxed dates.
11. The Chairman in 'summing up thoug;ht it was quite evident from the discussion
that the Meeting was not in favour of a continuation of centralised buying of
basket dates for the coming season and it was agreed that a record of the
discussion be sent to the Foreign Office v/ith an intimation that unless the
Secretary of State had strong reasons to urge to the contrary, the Minister
of Pood would buy only boxed dates this year, and would make provision
for the supply of basket dates only against firms orders.