Coll 28/61 ‘Persia. Trade Reports. Bundar Abbas & Lingah, 1925/6–’ [‎28r] (55/245)

Report on the Trade and Commerce of the District of Bandar
Abbas for the Persian year 1 309.
1. Trade.
(a) General conditions. —The whole conditions
of trade in Bandar Abbas during the year 1309
were influenced by Government action in fixing
a rate of Exchange and in controlling the purchase
and sale of Foreign Exchange. The sterling rate
of Exchange was krans 60 in the beginning and
rose to krans 90 for a pound at the close of the
year.
These rates of Exchange had no actual relation
to the metallic value of the kran in ratio to gold,
nor were they based on considerations of supply
and demand. Exporters, therefore, in order to get
better value for their exports had, during the course
of the year, been selling their exchange in the bazaar
where the pound sterling fluctuated between 100
and 120 krans. The Banks, having to buy at the
fixed Government rates of exchange, obtained very
little foreign currency in this market and it is difficult,
therefore, to estimate the volume of trade as com
pared with previous years, from that point of view.
Those adversely affected in Bandar Abbas were
the Hindu merchants, who had fairly large stocks
of piece-goods on hand when the Law controlling
Foreign Exchange came into force. They were
unable to buy exchange in liquidation thereof, and
consequently were compelled to export Persian
products, very often at a loss, in an endeavour to
remit payment abroad. The Russian influx of
goods of a cheaper nature further increased the
Hindus’ difficulties.
A noticeable change attributable to the Foreign
Exchange Law was an almost entire absence of
dealings in rupee currency. The Commerce is con
ducted by a few well-to-do Persian merchants who
have offices in Kerman, Yezd, Ispahan, Tehran
and the Russian Sharq Company.
The Customs revenue do not show much reduc
tion for the period under review, but as the tariffs
have been increased, it is difficult to make an
accurate estimate of the volume of trade from the
figures alone. This has undoubtedly declined con
siderably and will continue to do so to a greater
extent in the ensuing year, owing to the enactment
in February 1931 of the Foreign Trade Monopoly
Law.
Another noticeable feature is the almost entire
abtence of luxurious articles passing through the
Customs at Bandar Abbas due to the Exchange
restrictions.
Appendix I gives a list of the principal articles of
import with their values but the figures must be
considered to be only approximate, the local Customs
administration declining to furnish official statistics,
as formerly.
Notes on the Trade of the Lingah District. —This
continues to decline fast, and Lingah gives the
impression of being a deserted town. The total
volume of trade during the Persian year 1309 was
valued at krans 3,750,000 approximately against
krans 7,440,000 in the preceding year.
Imports decreased by about 38 per cent and
amounted to krans 2,844,300 against krans
4,400,000 in 1308.
The values of the principal articles of import were
cotton piece-goods—krans 996,830, rice—krans
771,740, sugar—krans 152,730, tea—krans 112,900
and timber—krans 103,680.
The principal exports were carpets, dates and
dried fruits, valued at krans 210,500, 111,400
and 82,100 respectively. The Export trade suffered
more severely and the total value of exports declined
from krans 2,960,500 in 1308 to krans 905,360
during the year under review.
( 6 ) New items of trade. —Rubber goods and sewing
machines imported from Russia by the Sharq Com
pany and the Export to India of ghee by Hindu and
Persian merchants with the object of collecting
Foreign Exchange in India for import purposes may
be said to be the only new items under this head.
(c) New Trade channels. —The Sharq Company
advertised the acceptance, at low rates, by steamers
of the Soviet Mercantile Fleet, of cargo including
Red Oxide of iron ore, for ports abroad, but, owing
to the irregular and unreliable service, failed to
secure freights.
(d) Growth of Foreign competition and danger to
British interests resulting therefrom. —The chief com
petitor in the Persian market is Russia, who con
tinues steadily to strengthen her position. The
total value of her imports during the year amounted
to over six and a half million krans.
Her share in the piece-goods trade in which she
specialises was brans 2,735,000 out of a total of
krans 8,153,000 or about 33 per cent thereof.