Coll 17/17 'FO Annual Reports, 1932-1938, 1947. Annual review of events 1939-1942. Political Review 1943-1944' [‎166r] (331/483)

37
though nearly three times as large as those for 1932-33, were still almost
negligible at 188 tons, valued at 7,483 dinars. Taking into consideration the
depressed world conditions, in the matter of agricultural prices during the period
to which these statistics relate, Iraq may fairly be said to have held her own with
dft notable success.
197. Exports of gold fell to 426,000 dinars as against 513,000 in 1932-33
and 701,000 in 1931-32.
(b) Exports to the United Kingdom.
198. The value of exports to the United Kingdom fell from 958,000 dinars
in 1932-33 (37-36 per cent, of the total export trade) to 901,000 dinars in
1933-34 (31-35 per cent.). Excluding exports of gold, the figures are : 1932-33,
445.000 dinars (17-5 per cent.); 1933-34, 475,000 dinars (19-4 per cent.).
Exports of dates to the United Kingdom were lower by 36,000 dinars, but, on the
other hand, exports of grain of all kinds and of hides and skins showed increases
of 30,000 and 25,000 dinars respectively. In other respects the position of the
United Kingdom was unchanged. The United States remain, after the United
Kingdom, the principal consumer of Iraqi produce, to the value of 361,000 dinars
(12-56 per cent, of the total export trade), of which dates account for
229.000 dinars.
General Resume.
199 The apparent adverse balance of trade, which in 1932-33 stood at
3,676,000 dinars, fell in 1933-34 to 3,151,000 dinars. Allowance being made for
importations by the oil concessionary companies, which cannot be reckoned as
part of the country’s normal requirements, the corrected figures are :
Iraqi dinars.
1932- 33 ... ... •• ••• 2,513,000
1933- 34 ... ... ... ••• 2,134,000
This decrease in the apparent adverse balance during a period of exceptional
difficulty in the case of a purely agricultural country, as yet imperfectly equipped,
is a matter for congratulation; less satisfactory is the steadily increasing dram
of capital from Iraq to Palestine, which partly results from the Jewish
emigration which has taken place in the last six months. It is estimated that
about £500,000 has left the country in this way m the past year Most of the
emigrants possessing capital have been of the “ sarraf (unofficial banker) class,
who have no doubt been attracted by glowing tales of the openings for profitable
investment in Palestine, and it is not impossible that much of the capital so
exported may be repatriated in course of time, especially if there is a ievi\al m
the Persian 'transit trade (see paragraphs 194 and 19o above).
200 There seems little reason to doubt that Iraq s prosperity is bound up
with her development as an agricultural country. Her inhabitants have no
tradition of industrial occupation and little aptitude therefor, while they have
been moderately successful tillers of the soil, with no assistance other than that
of nature for generations. Irrigation works, actual and in prospect, must in the
course of’ a few years vastly increase the productivity of Iraq, and improved
communications, rational grading of produce, and safe and rapid means of
transport will enable her to market her products with progressive success.
Irregular grading, with an unfortunate tendency to adulterate produce, has
indeed proved the chief obstacle in the past to the expansion of Iraq s export
trade It is true that the Hate Advisory Board set up by the Iraqi Government
has not proved to be a very useful body, but the bulk of the date-packing business
is in theffiands of British and American firms, who are fully alive to the necessity
of providing an article of recognised standard The Iraqi Government are
considering the introduction of regulations providing for the proper grading of
cotton for export and they are also contemplating the establishment of a tobacco
monopoly with a view to the improvement of locally grown tobacco, while their
interest in irrigation schemes shows no sign of slackening.