Coll 28/39(2) ‘Persia. Printed Correspondence, 1937–’ [‎45r] (89/320)

87
(71)
(Enclosure in Foreiqn Office covering note No. E.-4753j904/34, dated the 18th
August 1937.)
Despatch from the British Legation, Tehran, No. 283-E., dated the 29th
July 1937.
His Majesty’s Representative presents his compliments to His Majesty’s Prin •
cipal Secretary of State for Foreign Affairs and lias the honour to transmit herew ith,
copies of the documents mentioned below, on the subject of Political Reports from
Consular Officers ;—*
Reference Tehran despatch No. 124 of 1st April 1937.
Despatch No. 22 of 12th July, from A. E. Watkinson, His Majesty’s Consul,
Shiraz, to His Majesty’s Minister at Tehran.
Enclosure 1 to Serial No. (71).
(Enclosure in Foreiqn Office covering note No. E.-4753/904/34, dated the 18 r Ji
August 1937.)
Letter from the British Consulate, Shiraz, to the British Legation,
No. 22, dated the 12 th July 1937.
With further reference to your Circular despatch, No. 5 (119/1/37) of January
16th last and to my despatch, No. 5 (87/5/2/7) of February 6, I have the honour to
submit herewith a report on Economic Conditions in Fars.
2. The Summary of Events and Conditions in Fars during the year 1936 trans
mitted with my despatch under reference contains sections on agriculture (para
graphs 27—33) and on economic affairs (paragraph 38—49) which I have endeav
oured to bring up to date in the accompanying report from such scant sources of
information as are at my disposal here.
Enclosure II to Serial No. (71).
Report on Economic Condition in the Province of Fars in July 1937.
The Province of Fars owes such prosperity as it enjoys predominantly to its
agricultural resources. The establishment of cotton spinning mills and of a sugar
refinery and the demand for cotton to supply the Isfahan mills have only partly
compensated the serious losses to the province consequent on the discontinuance
of opium production, which was the chief source of revenue formerly. Not only
has the export trade in this commodity almost entirely ceased, on orders from Teh
ran, but all other agricultural products, gums, almonds, and dried fruits and carpets
and skins are now handled by various Monopoly Companies in which the Govern
ment has an interest sufficient to give them control. As a result it is generally
believed that production has decreased as individual profit becomes more difficult
of attainment. But it is not possible to obtain accurate statistics of crops and
supplies, and it becomes increasingly difficult even to estimate the volume of ex
ports under the present system of centralisation of trade in the Capital.
The tribal disturbances which were not completely put down until five or six
years ago resulted in Fars falling into disfavour with the General Government and
not receiving until recently the attention and support it merited. Its wealth in
the past was derived from its agricultural products, most of which are now' being
controlled by interests centred in Tehran and the surplus over-production costs
goes to the Capital, whereas formerly it remained in the Province.
For similar reasons, the industrial development of Shiraz has not been so rapid
as was at one time expected, as capital is not available and initiative killed once it
is realised that profits are to be deflected elsewhere. Thus the largest cotton mill
has abandoned all idea of extension for the present and other schemes for textile
factories, cement works, and various industrial undertakings are m abeyance for
the time being. The result is continued disfavour in the eyes of Government.