File 1283/1913 Pt 5 'MESOPOTAMIA TRADE Issue of new Trade Report' [‎115r] (225/270)

(2) The French were pushing a leather trade in Mosul and it seemed likely that
Americans would also get a share.
(3) Pottery imports were chiefly of Russian or Austrian origin. A large trade in
coffee cups was done by Russia via Basrah.
(4) British biscuits were being imitated by a biscuit of Hambourg make.
(5) Paper of all sorts came from Germany and Austria; none from England.
(6) Italian grey textiles were increasing in favour, being said to be better in quality
than those from Manchester, though slightly higher in price.
(7) Cotton blankets imported were of Dutch origin.
(8) Gauze tissues were mainly imported from France.
(9) Italian cotton yarns were sold in the Mosul market.
(10) Austrian linen was preferred to English in Baghdad, as its quality was superior
and it was said to stand washing much better.
(11) Cotton handkerchiefs and muslins were imported from Switzerland.
(12) Japanese cotton was gaining a footing.
(13) Foreign silk tissues were coming more and more from eastern ports at the
expense of Basrah, on account of the continental fashions set in Constantinople
and the importance of continental firms in the Constantinople market.
(14) Date-box wood came chiefly from Fiume and Galatz, and Russian white wood
seemed likely to gain a firm footing. American competition in timber was
expected to commence before long.
England had hitherto held here own in the “ Manchester ” trade, but there were signs
that, in the near future, severe competition would be encountered from Italy and Japan.
The following are some of the reasons suggested for the failure of British firms to cope Reasons for deteri-
with foreign competition oration of British
trade.
(1) The British traders refused to look for new lines of business. They were satisfied
with the profits which they were making in the cotton trade and in the export
of native products and would not take up small lines or experiment in the intro
duction of cheap goods at a small margin of profit.
(2) British merchandise was imitated shamelessly and openly.
(3) The British shipper and importer, whose dealings were mainly with Baghdad,
appeared not to recognise fully that the volume of trade in Baghdad was largely
at the mercy of the prevailing influences in Basrah. Latterly, however, there
had been a tendency on the part of the consignors to despatch wares to Basrah
for sale there in the event of a favourable market, or for despatch to Baghdad if
expedient.
(4) British firms ignored the fact that, if cheaper continental manufactures, especially
German, acquired a footing in Mesopotamia, it would be difficult to dislodge
them, and the inflow of continental wares into Persia would, in time, foster a
taste for them to the detriment of British manufactures there also.
(5) Dealers in the Baghdad market complained that English manufacturers would
not send samples of cotton clothing, even when asked to do so, because they
were too busy to care about the market, or to attend to the question of the
gaudy designs and colouring required.
Mr. Lloyd recommended that British merchants should strengthen their position by Recommendations
more general trading, that is to say, that, while maintaining their close watch and attention for improvement in
on Manchester goods, the more important firms should set aside for a few years proportion of metho(1>
their profits for the purpose of the trade in hardware, fancy goods and quineaillerie. They
should insist upon cheap, low class goods being manufactured for them, and, wherever possible,
should co-operate in keeping the supply of country produce for export in British hands.
Baghdad might be made an almost exclusively British Market, if the trading were all round
trading and not based, as formerly, on Manchester goods alone. The British Manufacturer
and merchant should study the needs of the market by sending out travellers to report on
local requirements, by the circulation of catalogues printed in Arabic, and by supplying the
people with what they want. The experience which firms could gain in selling small quantities
of cheap goods in this market, would be very valuable and would enable them to obtain
extensive knowledge of the methods, currency, demands, etc., of the market as well as to get
in touch with the small traders, who, beginning in a small way of bussiness, often developed
their connection very rapidly. Fraudulent imitation might be prevented by some system of
standard trade mark. Advertising, properly conducted, would be of great service to trade.
Advertisements and posters to be printed in Arabic, in bright colours, with sketches of eastern
subjects in illustration of articles on sale. Ingenious advertisement, if properly done, should
produce very remunerative results. Every business communication should be in a language
suitable to the country dealt with. Attention should be paid to the Constantinople market,
to which the native buyer from provincial towns makes an annual prilgrimage to buy his
year's stock. The buyer was apt to deal with large, general, wholesale supply establishments